Roger Biduk:
North American stock markets fell sharply again Wednesday as investor confidence was eroded by bad economic data and pessimism over the prospects of a U.S. bailout for the Big Three automakers.
Wall Street stocks were slammed the hardest, hitting levels not seen since 2003.
In Toronto, all of the sectors were lower, led by diversified metals and financials stocks.
The main S&P/TSX composite index fell by 345.17 points to 8,490.56, a drop of nearly four per cent.
The Canadian dollar was at 79.83 cents US, down 1.48 cents, and the TSX Venture Exchange lost 20.16 points to 730.09.
TSX financials stocks took a beating, down 4.9 per cent, after the Bank of Nova Scotia (TSX:BNS) warned Tuesday of a bigger-than-expected $595-million hit to its quarterly earnings caused by financial-market upheaval.
The other banks are expected to suffer similarly to Scotiabank when they issue their fourth-quarter results, starting next week. Scotia's shares were down $1.93 to $35.24.
Bank of Canada governor Mark Carney strongly indicated Wednesday that the central bank will cut interest rates further next month in an effort to stimulate the economy. Carney told a luncheon in London that the economy is slowing more than previously thought, and inflation is less of a concern.
The TSX diversified metals sector slid 11.5 per cent, and Teck Cominco Ltd. (TSX:TCK.B) slid 15 per cent to $5.22.
Energy stocks were down 3.8 per cent as crude oil lost 77 cents to close at US$53.62 a barrel on the New York Mercantile Exchange.
The gold sector trekked 2.8 per cent lower as gold futures ended ahead for the first session this week on U.S. dollar weakness.
The December bullion contract closed up $3.30 to US$736 an ounce.
In economic news, Statistics Canada's composite leading index - an indicator of future activity - fell 0.4 per cent in October. It was the biggest decline since the early-1990s recession, after a 0.3 per cent drop in September.
In earnings news, supermarket operator Metro Inc. (TSX:MRU.A) rang up $72.3 million in summer-quarter profit, up 25.5 per cent from year-ago earnings that were reduced by the integration of A&P stores. Sales were up 1.8 per cent from a year ago. Metro shares were at $33.
The Resolve Business Outsourcing Income Fund (TSX:RBO.UN) is suspending distributions to investors. The trusts units plunged 55 per cent, or $1.94, to $1.56.
Norsemont Mining Inc. (TSX:NOM) says its board has set up a special committee to deal with "recent unsolicited expressions of interest to acquire the company" and shares were ahead 15 per cent, or 25 cents, to $1.95.
Forestry company Tembec Inc. (TSX:TMB) fell to a quarterly loss of $4 million from year-earlier profit of $22 million, as sales declined to $629 million from $675 million. Shares dropped a penny to $1.56.
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Wednesday, November 19, 2008
Roger Biduk - Small Gains for Bay Street
Roger Biduk writes:
A session of see-saw trading ended in positive territory for North American stock markets as investors conjured up enough optimism to drive overall sentiment higher.
But the gains weren't without a struggle - one that lasted late into the afternoon - as traders weighed dismal home building numbers, and positive outlooks from Home Depot and Hewlett-Packard.
Toronto's S&P/TSX composite index closed ahead 40.28 points at 8,835.73.
The Canadian dollar was at 81.31 cents US, down 0.44 of a cent, and the TSX Venture Exchange dropped 35.54 to 750.25.
The TSX energy sector rose 0.5 per cent as light sweet crude closed below $55 a barrel after hitting a new 22-month low earlier in the day.
Crude was down 56 cents to $54.39 a barrel on the New York Mercantile Exchange.
Information technology stocks moved up four per cent.
Enbridge Inc. (TSX: ENB.TO) said it will invest US$500 million in Enbridge Energy Partners LP, raising its stake in the U.S. pipeline business to 27 per cent. Its shares were down $1.65 cents to $37.50.
Research In Motion (TSX: RIM.TO) was ahead 12 per cent, or $6.40, to $58. An analyst at National Bank suggested that the stock is "not one to give up on" despite lagging consumer spending.
Financials were up one per cent as Royal Bank (TSX: RY.TO) jumped 18 cents to $43.54.
Roger Biduk writes:
On the downside, gold stocks fell 0.7 per cent as the December bullion delivery declined $9.30 to US$732.70.
George Weston Ltd. (TSX: WN.TO) - majority owner of Loblaw Cos. (TSX: L.TO) - reported flat third-quarter profits of $179 million, as sales increased 4.4 per cent from a year earlier to $10.61 billion. Shares in George Weston were down 48 cents to $62.40.
Shares in TransCanada Corp. (TSX: TRP.TO) dropped nearly five per cent after Monday's announcement of bought-deal issue of $1 billion in new shares to pay debt and fund capital projects including its Keystone Pipeline. Shares were down $1.68 to $32.85.
In other corporate news, Telus Corp. (TSX: T.TO), Canada's second-largest telecom operator, says it will invest $100 million over three years on a health technology division. Telus shares gained 54 cents to $38.52.
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A session of see-saw trading ended in positive territory for North American stock markets as investors conjured up enough optimism to drive overall sentiment higher.
But the gains weren't without a struggle - one that lasted late into the afternoon - as traders weighed dismal home building numbers, and positive outlooks from Home Depot and Hewlett-Packard.
Toronto's S&P/TSX composite index closed ahead 40.28 points at 8,835.73.
The Canadian dollar was at 81.31 cents US, down 0.44 of a cent, and the TSX Venture Exchange dropped 35.54 to 750.25.
The TSX energy sector rose 0.5 per cent as light sweet crude closed below $55 a barrel after hitting a new 22-month low earlier in the day.
Crude was down 56 cents to $54.39 a barrel on the New York Mercantile Exchange.
Information technology stocks moved up four per cent.
Enbridge Inc. (TSX: ENB.TO) said it will invest US$500 million in Enbridge Energy Partners LP, raising its stake in the U.S. pipeline business to 27 per cent. Its shares were down $1.65 cents to $37.50.
Research In Motion (TSX: RIM.TO) was ahead 12 per cent, or $6.40, to $58. An analyst at National Bank suggested that the stock is "not one to give up on" despite lagging consumer spending.
Financials were up one per cent as Royal Bank (TSX: RY.TO) jumped 18 cents to $43.54.
Roger Biduk writes:
On the downside, gold stocks fell 0.7 per cent as the December bullion delivery declined $9.30 to US$732.70.
George Weston Ltd. (TSX: WN.TO) - majority owner of Loblaw Cos. (TSX: L.TO) - reported flat third-quarter profits of $179 million, as sales increased 4.4 per cent from a year earlier to $10.61 billion. Shares in George Weston were down 48 cents to $62.40.
Shares in TransCanada Corp. (TSX: TRP.TO) dropped nearly five per cent after Monday's announcement of bought-deal issue of $1 billion in new shares to pay debt and fund capital projects including its Keystone Pipeline. Shares were down $1.68 to $32.85.
In other corporate news, Telus Corp. (TSX: T.TO), Canada's second-largest telecom operator, says it will invest $100 million over three years on a health technology division. Telus shares gained 54 cents to $38.52.
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Tuesday, November 18, 2008
Roger Biduk - Oil Sinks Bay Street
Roger Biduk writes;
The Toronto stock market ended Monday at its lowest level in three weeks after oil prices tumbled and banking giant Citigroup announced another round of devastating job cuts.
Toronto's S&P/TSX composite index fell 260.51 points to 8,795.45 - its lowest close since Oct. 27.
The TSX Venture Exchange closed down 15.82 to 785.79.
The Canadian dollar was at 81.75 cents US, up 0.15 of a cent.
The TSX financial group led losses down 3.8 per cent. Bank of Montreal (TSX: BMO.TO) fell 3.7 per cent, or $1.55, to $39.90.
The Toronto energy sector was down three per cent after the December crude contract ended the session at a 22-month low on circulating questions about energy demand.
Light sweet crude slid $2.11 to settle at US$55.49 a barrel on the New York Mercantile Exchange.
In downbeat Canadian financial and oilpatch news, the Fort Hills oilsands partners have put off an investment decision on the mine near Fort McMurray, Alta., likely until next year.
The partners - Petro-Canada (TSX: PCA.TO), Teck Cominco Ltd. (TSX: TCK-B.TO) and UTS Energy Corp. (TSX: UTS.TO) - indefinitely shelved a decision on the project's proposed upgrader near Edmonton. Teck Cominco stock was ahead 4.6 per cent, or 29 cents, to $6.64.
Roger Biduk writes:
The gold sector lost 3.6 per cent as the December bullion contract ended the day 50 cents lower to US$742 an ounce. Earlier in the session it had fallen as much as $12.90.
Stocks in Forsys Metals Corp. (TSX: FSY.TO) rose 29 per cent after the company said it has reached a takeover agreement worth nearly $600 million that will put it in the hands of a unit of privately held Africa-based Forrest Group.
Forsys is active in uranium development in Namibia, and the deal is worth $7 per share. Company shares climbed $1.36 to $6.
More Canadians backed out of their mutual fund investments last month than any other time on record, said the Investment Funds Institute of Canada.
In October there were $8.4 billion in net redemptions, and total industry assets ended the month 19.5 per cent below their year-ago level.
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The Toronto stock market ended Monday at its lowest level in three weeks after oil prices tumbled and banking giant Citigroup announced another round of devastating job cuts.
Toronto's S&P/TSX composite index fell 260.51 points to 8,795.45 - its lowest close since Oct. 27.
The TSX Venture Exchange closed down 15.82 to 785.79.
The Canadian dollar was at 81.75 cents US, up 0.15 of a cent.
The TSX financial group led losses down 3.8 per cent. Bank of Montreal (TSX: BMO.TO) fell 3.7 per cent, or $1.55, to $39.90.
The Toronto energy sector was down three per cent after the December crude contract ended the session at a 22-month low on circulating questions about energy demand.
Light sweet crude slid $2.11 to settle at US$55.49 a barrel on the New York Mercantile Exchange.
In downbeat Canadian financial and oilpatch news, the Fort Hills oilsands partners have put off an investment decision on the mine near Fort McMurray, Alta., likely until next year.
The partners - Petro-Canada (TSX: PCA.TO), Teck Cominco Ltd. (TSX: TCK-B.TO) and UTS Energy Corp. (TSX: UTS.TO) - indefinitely shelved a decision on the project's proposed upgrader near Edmonton. Teck Cominco stock was ahead 4.6 per cent, or 29 cents, to $6.64.
Roger Biduk writes:
The gold sector lost 3.6 per cent as the December bullion contract ended the day 50 cents lower to US$742 an ounce. Earlier in the session it had fallen as much as $12.90.
Stocks in Forsys Metals Corp. (TSX: FSY.TO) rose 29 per cent after the company said it has reached a takeover agreement worth nearly $600 million that will put it in the hands of a unit of privately held Africa-based Forrest Group.
Forsys is active in uranium development in Namibia, and the deal is worth $7 per share. Company shares climbed $1.36 to $6.
More Canadians backed out of their mutual fund investments last month than any other time on record, said the Investment Funds Institute of Canada.
In October there were $8.4 billion in net redemptions, and total industry assets ended the month 19.5 per cent below their year-ago level.
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Thursday, November 13, 2008
Roger Biduk - Big Gains in Final Hours on Bay Street
Roger Biduk writes:
North American markets ended Thursday with an enthusiastic surge in the final hours of trading as investors snapped up deals and tested whether the market has priced in its share of bad economic news.
Toronto's S&P/TSX composite index moved up nearly five per cent, or 430.21 points, to 9,352.78, nearly making up for its 500-point loss on Wednesday.
The TSX Venture Exchange slipped 8.91 to 813.59.
The Canadian dollar was at 82.54 cents US, up 1.73 cents. That only partly made up for a 2.77-cent drop on Wednesday.
Statistics Canada said that Canada's trade surplus declined to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose.
On the TSX, the gold sector led gains, ahead 12.4 per cent, as the December bullion contract closed down $13.30 to US$705 an ounce.
The energy sector increased seven per cent as the price of crude oil for December delivery rose $2.08 to end at $58.24 a barrel.
Harvest Energy Trust (TSX:HTE.UN) got a 15 per cent boost in its units - rising $1.70 to $12.70 - after reporting earnings of $295.8 million from $11.8 million a year ago. The company also said it's delaying a $2 billion expansion of its Newfoundland refinery until credit markets improve.
Loblaw Cos. Ltd. (TSX:L) reported a 32.5 per cent rise in third-quarter net income to $155 million, as sales grew 3.9 per cent. Its shares were up six per cent, or $1.66, to $28.60.
Nortel Networks Corp. (TSX:NT) stocks moved up 30 per cent, or 21 cents, to 30 cents after an RBC Capital markets analyst said bankruptcy "is a distinct possibility down the road," as he released a report that marked down the company's share-price target to zero.
Sino-Forest Corp. (TSX:TRE), one of China's largest lumber suppliers, posted an 18.6 per cent rise in net income to US$75.2 million from US$63.4 million. Shares in the company moved down 14 per cent, or $1.06, to $6.62.
And Lundin Mining Corp. (TSX:LUN) is suspending zinc production at two Portuguese mines, sending its stock up 14 per cent, or 22 cents, to $1.72.
Pan American Silver Corp. (TSX:PAA) shares were up $1.50 to $13.74 after the company said it's cutting 500 jobs, rolling back executive salaries by 10 per cent and reducing exploration and capital spending because of lower silver and zinc prices.
Uranium miner Denison Mines Corp. (TSX:DML) shares were up 25 per cent, or 33 cents, to $1.65, after reporting a small profit in the third quarter of US$332,000 over a net loss of $11.7 million last year.
Internet gambling software provider CryptoLogic Ltd. (TSX:CRY) says it lost US$5.9 million in the July-September period, down from a year-ago profit of $2.4 million. Shares dropped 30 per cent, or $1.74, to $4.
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North American markets ended Thursday with an enthusiastic surge in the final hours of trading as investors snapped up deals and tested whether the market has priced in its share of bad economic news.
Toronto's S&P/TSX composite index moved up nearly five per cent, or 430.21 points, to 9,352.78, nearly making up for its 500-point loss on Wednesday.
The TSX Venture Exchange slipped 8.91 to 813.59.
The Canadian dollar was at 82.54 cents US, up 1.73 cents. That only partly made up for a 2.77-cent drop on Wednesday.
Statistics Canada said that Canada's trade surplus declined to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose.
On the TSX, the gold sector led gains, ahead 12.4 per cent, as the December bullion contract closed down $13.30 to US$705 an ounce.
The energy sector increased seven per cent as the price of crude oil for December delivery rose $2.08 to end at $58.24 a barrel.
Harvest Energy Trust (TSX:HTE.UN) got a 15 per cent boost in its units - rising $1.70 to $12.70 - after reporting earnings of $295.8 million from $11.8 million a year ago. The company also said it's delaying a $2 billion expansion of its Newfoundland refinery until credit markets improve.
Loblaw Cos. Ltd. (TSX:L) reported a 32.5 per cent rise in third-quarter net income to $155 million, as sales grew 3.9 per cent. Its shares were up six per cent, or $1.66, to $28.60.
Nortel Networks Corp. (TSX:NT) stocks moved up 30 per cent, or 21 cents, to 30 cents after an RBC Capital markets analyst said bankruptcy "is a distinct possibility down the road," as he released a report that marked down the company's share-price target to zero.
Sino-Forest Corp. (TSX:TRE), one of China's largest lumber suppliers, posted an 18.6 per cent rise in net income to US$75.2 million from US$63.4 million. Shares in the company moved down 14 per cent, or $1.06, to $6.62.
And Lundin Mining Corp. (TSX:LUN) is suspending zinc production at two Portuguese mines, sending its stock up 14 per cent, or 22 cents, to $1.72.
Pan American Silver Corp. (TSX:PAA) shares were up $1.50 to $13.74 after the company said it's cutting 500 jobs, rolling back executive salaries by 10 per cent and reducing exploration and capital spending because of lower silver and zinc prices.
Uranium miner Denison Mines Corp. (TSX:DML) shares were up 25 per cent, or 33 cents, to $1.65, after reporting a small profit in the third quarter of US$332,000 over a net loss of $11.7 million last year.
Internet gambling software provider CryptoLogic Ltd. (TSX:CRY) says it lost US$5.9 million in the July-September period, down from a year-ago profit of $2.4 million. Shares dropped 30 per cent, or $1.74, to $4.
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Tuesday, November 11, 2008
No Confidence on Bay Street
Roger Biduk writes:
The hunt for stock market confidence faced new hurdles Tuesday as bad earnings reports and weakening commodity prices left key indexes losing ground.
Toronto's S&P/TSX composite index fell 264.80 points to end the session at 9,424 on overall weakness headed by metals and materials stocks.
The TSX Venture Exchange gained 41.69 points to 872.33.
The TSX diversified metals sector slid 10.6 per cent.
Teck Cominco Ltd. (TSX:TCK.B) was down 20 per cent, losing $2.20 to $8.75. The company issued a statement just minutes before the end of trading to dispel rumours that it's planning to issue more equity - which would be dilutive to current shareholders. Instead, Teck said it's planning asset sales and debt financing to reduce a bridge loan.
Energy stocks declined 4.5 per cent with crude oil closing under US$60 a barrel for the first time in nearly two years.
The crude futures contract briefly touched their lowest level in 21 months - down to $58.32 - but regained some ground to close 4.9 per cent lower, or down $3.08, to US$59.33.
The gold sector fell 3.7 per cent as bullion fell $13.70 to US$732.80 an ounce on the New York Mercantile Exchange. Silver, platinum and copper futures were all at last four per cent lower.
A report from the Bank of Montreal said Canada's resource boom is over and won't return for at least another year, mostly because of the U.S. recession and weakening demand from countries like China.
The Canadian dollar was down 0.30 of a cent at 83.28 cents US, trading on international markets because Canadian banks were closed.
Roger Biduk writes:
In corporate news, Rona Inc. (TSX:RON) reported a 10 per cent decline in summer-quarter profit to $53.4 million as sales at stores open a year or more declined 2.3 per cent. But the quarter was better than expected and Rona stock gained five per cent, climbing 55 cents to $11.70.
High fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation (TSX:ACE.B) to a $135-million third-quarter loss. ACE shares fell to new lows, down 61 cents or 13.6 per cent to $3.89.
Cameco Corp. (TSX:CCO) said it's looking to cut costs after a 46 per cent slump in adjusted third-quarter profit, and its shares were down $1.14 to $18.60.
Wenzel Downhole Tools Ltd. (TSX:WZL) reported that third-quarter revenue rose to $17.2 million from $11.2 million, and it earned $3.8 million, up from barely break-even a year earlier. Wenzel shares rose 7.6 per cent, or nine cents, to $1.27.
CI Financial Income Fund (TSX:CIX.UN), one of Canada's largest mutual fund companies, says its third-quarter net income fell by 17.8 per cent to $118.1 million. Units of the fund slid 31 cents to $15.45.
In Britain, retail sales fell in October for the first time in 3 1/2 years, while the number of home sales in England and Wales dropped to a record low.
Overseas stock markets were sharply lower. Losses in Asia contrasted with big gains Monday on news of Beijing's four-trillion-yuan (US$586-billion) government spending package.
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The hunt for stock market confidence faced new hurdles Tuesday as bad earnings reports and weakening commodity prices left key indexes losing ground.
Toronto's S&P/TSX composite index fell 264.80 points to end the session at 9,424 on overall weakness headed by metals and materials stocks.
The TSX Venture Exchange gained 41.69 points to 872.33.
The TSX diversified metals sector slid 10.6 per cent.
Teck Cominco Ltd. (TSX:TCK.B) was down 20 per cent, losing $2.20 to $8.75. The company issued a statement just minutes before the end of trading to dispel rumours that it's planning to issue more equity - which would be dilutive to current shareholders. Instead, Teck said it's planning asset sales and debt financing to reduce a bridge loan.
Energy stocks declined 4.5 per cent with crude oil closing under US$60 a barrel for the first time in nearly two years.
The crude futures contract briefly touched their lowest level in 21 months - down to $58.32 - but regained some ground to close 4.9 per cent lower, or down $3.08, to US$59.33.
The gold sector fell 3.7 per cent as bullion fell $13.70 to US$732.80 an ounce on the New York Mercantile Exchange. Silver, platinum and copper futures were all at last four per cent lower.
A report from the Bank of Montreal said Canada's resource boom is over and won't return for at least another year, mostly because of the U.S. recession and weakening demand from countries like China.
The Canadian dollar was down 0.30 of a cent at 83.28 cents US, trading on international markets because Canadian banks were closed.
Roger Biduk writes:
In corporate news, Rona Inc. (TSX:RON) reported a 10 per cent decline in summer-quarter profit to $53.4 million as sales at stores open a year or more declined 2.3 per cent. But the quarter was better than expected and Rona stock gained five per cent, climbing 55 cents to $11.70.
High fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation (TSX:ACE.B) to a $135-million third-quarter loss. ACE shares fell to new lows, down 61 cents or 13.6 per cent to $3.89.
Cameco Corp. (TSX:CCO) said it's looking to cut costs after a 46 per cent slump in adjusted third-quarter profit, and its shares were down $1.14 to $18.60.
Wenzel Downhole Tools Ltd. (TSX:WZL) reported that third-quarter revenue rose to $17.2 million from $11.2 million, and it earned $3.8 million, up from barely break-even a year earlier. Wenzel shares rose 7.6 per cent, or nine cents, to $1.27.
CI Financial Income Fund (TSX:CIX.UN), one of Canada's largest mutual fund companies, says its third-quarter net income fell by 17.8 per cent to $118.1 million. Units of the fund slid 31 cents to $15.45.
In Britain, retail sales fell in October for the first time in 3 1/2 years, while the number of home sales in England and Wales dropped to a record low.
Overseas stock markets were sharply lower. Losses in Asia contrasted with big gains Monday on news of Beijing's four-trillion-yuan (US$586-billion) government spending package.
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Wednesday, November 5, 2008
Bleeding on Bay Street
Roger Biduk writes:
The stock market optimism that was generated ahead of the U.S. elections was mostly obliterated on North American markets Wednesday, with commodities tumbling as part of a broader decline.
Toronto's S&P/TSX composite index came out the least scathed, losing about half of the gains it took a day earlier. It closed down 229.38 points to 9,887.20.
The TSX Venture Exchange moved down 23.85 points to 951.42.
The TSX base metals sector led declines, down 7.9 per cent, as all major sectors were down.
Gold stocks were down 1.44 per cent overall as the sector endured an up-and-down session where it was at one time the lead gainer, and later the lead loser.
The December bullion contract on the New York Mercantile Exchange closed $14.90 lower to US$742.40 an ounce, after gaining more than five per cent in the last two sessions.
The Canadian dollar closed at 85.62 cents US, down 1.25 cents, even as the greenback weakened.
On the TSX, the energy sector dropped 3.46 per cent as the December crude oil receded $5.23 to US$65.30 on the New York Mercantile Exchange.
In Canadian corporate news, units of The Brick Group Income Fund (TSX:BRK.UN) fell nearly 36 per cent - down $1.79 to $3.25 - after the furniture, appliance and electronics retailer said it will cut distributions in half and reported third quarter net profits dropped to $12.4 million from $17.2 million last year.
Newalta Income Fund (TSX:NAL.UN) announced it will convert from an income trust into a dividend-paying corporation. Newalta is also cutting its growth capital spending next year by about 30 per cent to $75 million, as it presented third-quarter results showing a 19 per cent increase in revenue to $158.6 million and a five per cent rise in net income to $18.7 million. Its units rose two per cent, or 17 cents, to $9.20.
Enbridge Inc. (TSX:ENB) said third-quarter profit increased 90 per cent over a year ago as revenue swelled 66 per cent to $4.37 billion from $2.63 billion. The pipeline operator earned $148.4 million or 41 cents per share in the three months ended Sept. 30, up from $78.1 million a year earlier. Enbridge shares moved down 30 cents to $42.
Pengrowth Energy Trust (TSX:PGF.UN) reported third-quarter earnings of $422.4 million, powered by pretax mark-to-market gains of $476 million on commodity hedging, while oil production declined five per cent. Its units were down 44 cents to $12.87.
Agrium Inc. (TSX:AGU) gained 18 cents to $46.18 after third-quarter earnings of US$367 million, more than seven times the $51 million the farm-inputs company earned in the year-ago period.
Domtar Corp. (TSX:UFS) booked third-quarter net earnings of $43 million, up from of $36 million a year ago, but it offered a glum fourth-quarter outlook and its stock rose 10 cents to $2.80.
Cameco Corp. (TSX:CCO) gained 10 cents to $20.17 after the company disclosed a "modest increase" in water inflow into a development area of its McArthur River uranium mine in northern Saskatchewan. Cameco said the inflow is only 10 per cent of its pumping capacity and is "well managed."
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The stock market optimism that was generated ahead of the U.S. elections was mostly obliterated on North American markets Wednesday, with commodities tumbling as part of a broader decline.
Toronto's S&P/TSX composite index came out the least scathed, losing about half of the gains it took a day earlier. It closed down 229.38 points to 9,887.20.
The TSX Venture Exchange moved down 23.85 points to 951.42.
The TSX base metals sector led declines, down 7.9 per cent, as all major sectors were down.
Gold stocks were down 1.44 per cent overall as the sector endured an up-and-down session where it was at one time the lead gainer, and later the lead loser.
The December bullion contract on the New York Mercantile Exchange closed $14.90 lower to US$742.40 an ounce, after gaining more than five per cent in the last two sessions.
The Canadian dollar closed at 85.62 cents US, down 1.25 cents, even as the greenback weakened.
On the TSX, the energy sector dropped 3.46 per cent as the December crude oil receded $5.23 to US$65.30 on the New York Mercantile Exchange.
In Canadian corporate news, units of The Brick Group Income Fund (TSX:BRK.UN) fell nearly 36 per cent - down $1.79 to $3.25 - after the furniture, appliance and electronics retailer said it will cut distributions in half and reported third quarter net profits dropped to $12.4 million from $17.2 million last year.
Newalta Income Fund (TSX:NAL.UN) announced it will convert from an income trust into a dividend-paying corporation. Newalta is also cutting its growth capital spending next year by about 30 per cent to $75 million, as it presented third-quarter results showing a 19 per cent increase in revenue to $158.6 million and a five per cent rise in net income to $18.7 million. Its units rose two per cent, or 17 cents, to $9.20.
Enbridge Inc. (TSX:ENB) said third-quarter profit increased 90 per cent over a year ago as revenue swelled 66 per cent to $4.37 billion from $2.63 billion. The pipeline operator earned $148.4 million or 41 cents per share in the three months ended Sept. 30, up from $78.1 million a year earlier. Enbridge shares moved down 30 cents to $42.
Pengrowth Energy Trust (TSX:PGF.UN) reported third-quarter earnings of $422.4 million, powered by pretax mark-to-market gains of $476 million on commodity hedging, while oil production declined five per cent. Its units were down 44 cents to $12.87.
Agrium Inc. (TSX:AGU) gained 18 cents to $46.18 after third-quarter earnings of US$367 million, more than seven times the $51 million the farm-inputs company earned in the year-ago period.
Domtar Corp. (TSX:UFS) booked third-quarter net earnings of $43 million, up from of $36 million a year ago, but it offered a glum fourth-quarter outlook and its stock rose 10 cents to $2.80.
Cameco Corp. (TSX:CCO) gained 10 cents to $20.17 after the company disclosed a "modest increase" in water inflow into a development area of its McArthur River uranium mine in northern Saskatchewan. Cameco said the inflow is only 10 per cent of its pumping capacity and is "well managed."
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Bay Street Rallies
Roger Biduk writes:
North American stock markets surged ahead on Tuesday and closed near their highs of the day as stronger commodities prices and the U.S. election offered up plenty of motivation for investors.
Toronto's S&P/TSX composite index moved ahead four per cent, or 395.32 points, to close at 10,116.58.
The TSX Venture Exchange moved up 39.68 points to 975.27.
Gold stocks led the climb, rising 11.5 per cent, as the December bullion contract gained $30.50 to US$757.30 an ounce on the New York Mercantile Exchange.
The TSX energy sector jumped 5.9 per cent. The light sweet crude contract for December ended the day ahead 10.4 per cent to close at its highest level in two weeks, up $6.62 at $70.53.
The CDN$ continued its revival, gaining 2.19 cents Tuesday. It closed at 86.87 cents US, as the greenback fell against most other major currencies. The loonie had dived to barely 77 cents a week ago but has recovered much of the ground it lost in October.
There was more bad news in the auto sector Tuesday, with Canadian-based global parts maker Magna International Inc. (TSX:MG.A) reporting a third-quarter net loss of US$215 million as sales fell nine per cent from a year earlier. Magna halved its dividend and cut its full-year sales outlook. Its stock lost $1.48 to $39.52.
And German luxury carmaker BMW said its third-quarter earnings dropped 63 per cent to 298 million euros (US$375.5 million) amid "ongoing consumer reticence."
TMX Group Inc. (TSX:X) is cutting 10 per cent of its workforce - 85 people - as the stock exchange operator's integration of the Montreal derivatives market continues. TMX shares gained 80 cents to $29.30.
Enbridge Income Fund (TSX:ENF.UN) said its profit jumped 29 per cent in the third quarter and the company hiked its dividend, which helped send its units up 45 cents to $9.95.
Boralex Power Income Fund (TSX:BPT.UN) says its profit nearly doubled in the third quarter as revenue rose nearly 19 per cent. Units in the Montreal-based electricity producer moved down two cents to $3.66.
Roger Biduk writes:
Talisman Energy Inc. (TSX:TLM) said its third-quarter earnings set a company record, soaring 305 per cent to $1.4 billion. Its shares were up 98 cents to $12.64.
Saputo Inc. (TSX:SAP) has reported summer-quarter earnings of $69 million, up 10 per cent from $62.5 million in the year-ago period, as revenue grew 13 per cent to $1.45 billion largely because of a U.S. acquisition. Shares slid $1 to $24.
Open Text Corp. (TSX:OTC) gained $2.04 to $34.04 after saying it will cut its global workforce by 10 per cent - about 360 jobs - despite nearly doubling its profit in the latest quarter on higher sales.
Catalyst Paper (TSX:CTL) shares rose nearly 23 per cent after the company said cost saving measures helped it trim losses in the third quarter to $10.9 million from $18.6 million a year earlier. Shares were up 8.5 cents to 46 cents.
Magna Entertainment Corp.(TSX: MEC.A) shares jumped more than 10 per cent, up 46 cents to $4.86, causing North America's largest owner and operator of horse racetracks to issue a release saying it isn't aware of any development that would cause the stock's rise.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
North American stock markets surged ahead on Tuesday and closed near their highs of the day as stronger commodities prices and the U.S. election offered up plenty of motivation for investors.
Toronto's S&P/TSX composite index moved ahead four per cent, or 395.32 points, to close at 10,116.58.
The TSX Venture Exchange moved up 39.68 points to 975.27.
Gold stocks led the climb, rising 11.5 per cent, as the December bullion contract gained $30.50 to US$757.30 an ounce on the New York Mercantile Exchange.
The TSX energy sector jumped 5.9 per cent. The light sweet crude contract for December ended the day ahead 10.4 per cent to close at its highest level in two weeks, up $6.62 at $70.53.
The CDN$ continued its revival, gaining 2.19 cents Tuesday. It closed at 86.87 cents US, as the greenback fell against most other major currencies. The loonie had dived to barely 77 cents a week ago but has recovered much of the ground it lost in October.
There was more bad news in the auto sector Tuesday, with Canadian-based global parts maker Magna International Inc. (TSX:MG.A) reporting a third-quarter net loss of US$215 million as sales fell nine per cent from a year earlier. Magna halved its dividend and cut its full-year sales outlook. Its stock lost $1.48 to $39.52.
And German luxury carmaker BMW said its third-quarter earnings dropped 63 per cent to 298 million euros (US$375.5 million) amid "ongoing consumer reticence."
TMX Group Inc. (TSX:X) is cutting 10 per cent of its workforce - 85 people - as the stock exchange operator's integration of the Montreal derivatives market continues. TMX shares gained 80 cents to $29.30.
Enbridge Income Fund (TSX:ENF.UN) said its profit jumped 29 per cent in the third quarter and the company hiked its dividend, which helped send its units up 45 cents to $9.95.
Boralex Power Income Fund (TSX:BPT.UN) says its profit nearly doubled in the third quarter as revenue rose nearly 19 per cent. Units in the Montreal-based electricity producer moved down two cents to $3.66.
Roger Biduk writes:
Talisman Energy Inc. (TSX:TLM) said its third-quarter earnings set a company record, soaring 305 per cent to $1.4 billion. Its shares were up 98 cents to $12.64.
Saputo Inc. (TSX:SAP) has reported summer-quarter earnings of $69 million, up 10 per cent from $62.5 million in the year-ago period, as revenue grew 13 per cent to $1.45 billion largely because of a U.S. acquisition. Shares slid $1 to $24.
Open Text Corp. (TSX:OTC) gained $2.04 to $34.04 after saying it will cut its global workforce by 10 per cent - about 360 jobs - despite nearly doubling its profit in the latest quarter on higher sales.
Catalyst Paper (TSX:CTL) shares rose nearly 23 per cent after the company said cost saving measures helped it trim losses in the third quarter to $10.9 million from $18.6 million a year earlier. Shares were up 8.5 cents to 46 cents.
Magna Entertainment Corp.(TSX: MEC.A) shares jumped more than 10 per cent, up 46 cents to $4.86, causing North America's largest owner and operator of horse racetracks to issue a release saying it isn't aware of any development that would cause the stock's rise.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
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