Roger Biduk - Tough Day on Bay Street

Roger Biduk writes:

Deepening economic gloom pushed stock markets into the red for the fifth straight day Tuesday as investors worried further intervention in financial markets won't prevent a looming recession.

Toronto's S&P/TSX composite index fell 400.88 points to 9,829.55. The benchmark had been up more than 250 points in the morning.

That followed Monday's 573-point loss and 800-plus declines on two separate days last week. The TSX has lost about one-third of its value from its high in June.

The Canadian dollar was down 0.67 cent to 90.31 cents US. The currency has lost more than three cents against the American dollar since the start of October.

The TSX Venture Exchange lost 39.64 points Tuesday to 1,094.46.

In Toronto, the energy sector was down 6.3 per cent even as crude oil posted an increase of $2.25 to US$90.06 a barrel after plunging to an eight-month low Monday on recession fears.

EnCana (TSX:ECA) was down $4.03 to $52.17, and Suncor Energy (TSX:SU) lost $2.34 to $29.16.

The gold sector added 1.2 per cent as the December gold contract on the New York Mercantile Exchange gained $15.80 to $882 an ounce. Goldcorp (TSX:G) was up $1.85 to $28.83, while Barrick Gold (TSX:ABX) added 87 cents to $33.67.

The TSX metals sector lost 6.9 per cent on lower commodity prices. Sector heavyweight Teck Cominco (TSX:TCK.B) was down $2.42 or 11 per cent to $19.96.

The financial sector declined 4.4 per cent. Bank of Montreal (TSX:BMO) lost $1.21 to $39 and Bank of Nova Scotia (TSX:BNS) declined $1.85 to $43.15. Manulife Financial (TSX:MFC) lost $2.04 to $32.67.

Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.

www.rogerbiduk.ca
www.rogerbiduk.wordpress.com

Roger Biduk - BAC Buys MER, US$ Drops, Metals Rise

Roger Biduk writes:

One big news story tomorrow will be the purchase of Merrill Lynch (MER) by Bank of America BAC).
You can read more about it here on my U.S. blog.

Another will be the bankruptcy of Lehman Bros. (LEH) if that happens. It hasn't yet as there still might be some kind of last-minute deal before midnight but it doesn't look good.

Currently, gold is up $22.50 or 2.94 and silver is up 4%. That should bode well for the gold stocks I mentioned in last Thursday's blog that were all up huge on Friday.
If Lehman does go under the US$ should drop and there should be a nice rise in gold.

Oil is down 2%, breaking the $100 mark to $99.39.

Roger Biduk's website

Roger Biduk's blog on the U.S. markets

rogerbiduk@rogerbiduk.ca