Roger Biduk writes:
The Toronto stock market maintained a solid advance late Thursday morning in a broad-based upturn led by the financial sector as investors took in earnings reports from three of the big Canadian banks.
Toronto's S&P/TSX composite index moved up 71.62 points to 8,368.58 with the energy sector the only big decliner.
The TSX Venture Exchange was down 6.16 to 705.92.
The Canadian dollar was off 0.74 cent to 79.04 cents US as Prime Minister Stephen Harper strives to retain power for his Conservative minority against a Liberal-NDP coalition.
The TSX financial sector was up two per cent as TD Bank (TSX: TD.TO), CIBC (TSX: CM.TO) and National Bank (TSX: NA.TO) reported earnings. The banks were hit by credit losses and provisions, but maintained their healthy dividends.
Also reporting was Bombardier Inc. (TSX: BBD-B.TO) with a summer-quarter profit of US$245 million, up from $91 million a year ago. The global plane and train maker's revenue ran up eight per cent to $4.57 billion. Its shares rose 14 cents to $4.03.
Among the banks, TD shares rose 81 cents to $43.31 after its fourth-quarter net income came in at $1.01 billion, off from $1.09 billion a year ago.
Canadian Imperial Bank of Commerce (TSX: CM.TO) earned $436 million, down from $884 million, but its shares gained $2.12 to $47.42.
National Bank advanced 73 cents to $38.55 after fourth-quarter earnings of $70 million, up from a year-ago loss of $175 million.
Royal Bank (TSX: RY.TO), which reports Friday, gained $1.56 to $39.81.
TSX telecom stocks were also a major support as Telus Corp. (TSX: T.TO) gained 68 cents to $37.06 while Rogers Communications (TSX: RCI-B.TO) improved $1.07 to $35.21.
Roger Biduk writes:
The TSX energy sector was down 1.25 per cent as the January crude contract in New York lost $1.13 to US$45.66 a barrel after earlier falling as low as US$45.30, a level last seen in early 2005 as traders see demand shrinking because of worsening economic conditions.
"You could see prices testing $40 by the end of the year because the economic data is really ugly at the moment," commented Christoffer Moltke-Leth, head of sales trading at Saxo Capital Markets in Singapore.
"Demand destruction is still very much the concern."
Suncor Inc. (TSX: SU.TO) gave back 45 cents to $22.82 and Canadian Natural Resources (TSX: CNQ.TO) faltered $1.22 46.15.
Investors also took in news from companies trying to cope with worsening economic conditions.
AT&T Inc. joined the recession's cavalcade of layoffs by announcing it will cut 12,000 people, four per cent of its workforce. Chemical maker DuPont says it will cut 2,500 jobs, and Credit Suisse Group is eliminating 5,300 - 11 per cent of its global total.
Meanwhile, leading mobile phone maker Nokia Corp. downgraded its fourth-quarter outlook for the second time.
In Canada, shares in paper producer AbitibiBowater Inc. (TSX: ABH.TO) were unchanged at 63 cents after it announced it is cutting 1,100 jobs as it closes its troubled newsprint mill in Grand Falls, N.L., and a plant in Tennessee to cope with falling demand in the North American market.
Shares in baked goods company George Weston Ltd. (TSX: WN.TO) rose $1.91 to $58.40 after it said Thursday its is in talks to sell its Dunedin unit's U.S. fresh bread and baked goods business to Grupo Bimbo of Mexico.
European stock markets were narrowly mixed despite big interest-rate reductions. The European Central Bank cut its policy interest rate to 2.5 per cent from 3.25 per cent, and the Bank of England slashed its rate by a full percentage point to two per cent, the lowest since 1951.
The FTSE 100 was 0.85 per cent higher in London, while Germany's DAX gained one per cent and the French CAC-40 was flat.
Tokyo's Nikkei index closed down one per cent, while the Hang Seng in Hong Kong slipped 0.6 per cent.
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Thursday, December 4, 2008
Wednesday, December 3, 2008
Roger Biduk - Small Drop for Bay Street
Roger Biduk writes:
The Toronto stock market closed slightly lower Wednesday as a burst in financial stocks helped offset lower energy and base metal stocks.
Toronto's S&P/TSX composite index lost 30.85 points to 8,296.96 but well off early lows as financial stocks improved ahead of a slew of earnings coming out Thursday and Friday.
The TSX Venture Exchange moved down 19.02 points to 712.08.
Another source of strength was Research In Motion Ltd. (TSX:RIM) - its stock closed higher despite some the BlackBerry maker's announcement that its third-quarter profit will be lower than previously estimated. Following a negative start, RIM shares were up $2.44 to $48.90 even as it said it sold fewer BlackBerrys than expected and its earnings would miss its financial guidance.
Meanwhile, RIM on Wednesday announced a $66-million takeover bid for data encryption specialist Certicom Corp. (TSX:CIC). Certicom shares nearly doubled, gaining 74 cents to close at $1.59.
The CDN$ was down 0.16 cent to 79.78 cents U.S. amid ongoing economic gloom and political wrangling in Ottawa.
The TSX energy sector fell 1.63 per cent as data showed stronger demand for oil in the United States. Crude inventories for last week increased by 456,000 barrels, compared to the expected increase of one million. Gasoline inventories fell 1.5 million barrels.
The price of oil declined 17 cents to US$46.79 a barrel on the New York Mercantile Exchange.
EnCana Corp. (TSX:ECA) declined $1.06 to $52.88 and PetroCanada (TSX:PCA) was down 36 cents to $26.95. Nexen Inc. lost $2.23 or 9.35 per cent to $21.65, on a cooling of takeover speculation that had driven the stock up nine per cent Tuesday.
Roger Biduk writes:
The TSX financial sector was up 1.62 per cent as investors wait for earnings reports from TD Bank (TSX:TD), CIBC (TSX:CM) and National Bank (TSX:NA) Thursday and from Royal Bank (TSX:RY) Friday. Scotiabank (TSX:BNS) reported Tuesday that its fourth-quarter profit fell 67 per cent to $315 million. TD Bank gained $1.38 to $42.50 but National Bank (TSX:NA) gave back 57 cents to $37.82.
The base metals sector retreated 5.77 per cent after American mining giant Freeport-McMoRan Copper & Gold Inc. said Wednesday it would suspend operations and lay off the bulk of its workers at a New Mexico mine, cut production estimates through 2010 and curb other costs as it struggles to cope with plummeting copper prices.
Copper prices have fallen from about $3.61 per pound at the end of September to an average of $1.69 last month. On Wednesday, copper dropped 2.9 per cent to US$1.5545 a pound.
Teck Cominco Ltd. (TSX:TCK.B) ran down 43 cents nine per cent to $4.35 while Inmet Mining (TSX:IMN) gave back $1.54 or 10 per cent to $13.71.
The gold sector was off 3.75 per cent as February bullion contract in New York moved down $12.80 to US$770.50 an ounce. Goldcorp (TSX:G) faded $1.82 to $29.28.
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The Toronto stock market closed slightly lower Wednesday as a burst in financial stocks helped offset lower energy and base metal stocks.
Toronto's S&P/TSX composite index lost 30.85 points to 8,296.96 but well off early lows as financial stocks improved ahead of a slew of earnings coming out Thursday and Friday.
The TSX Venture Exchange moved down 19.02 points to 712.08.
Another source of strength was Research In Motion Ltd. (TSX:RIM) - its stock closed higher despite some the BlackBerry maker's announcement that its third-quarter profit will be lower than previously estimated. Following a negative start, RIM shares were up $2.44 to $48.90 even as it said it sold fewer BlackBerrys than expected and its earnings would miss its financial guidance.
Meanwhile, RIM on Wednesday announced a $66-million takeover bid for data encryption specialist Certicom Corp. (TSX:CIC). Certicom shares nearly doubled, gaining 74 cents to close at $1.59.
The CDN$ was down 0.16 cent to 79.78 cents U.S. amid ongoing economic gloom and political wrangling in Ottawa.
The TSX energy sector fell 1.63 per cent as data showed stronger demand for oil in the United States. Crude inventories for last week increased by 456,000 barrels, compared to the expected increase of one million. Gasoline inventories fell 1.5 million barrels.
The price of oil declined 17 cents to US$46.79 a barrel on the New York Mercantile Exchange.
EnCana Corp. (TSX:ECA) declined $1.06 to $52.88 and PetroCanada (TSX:PCA) was down 36 cents to $26.95. Nexen Inc. lost $2.23 or 9.35 per cent to $21.65, on a cooling of takeover speculation that had driven the stock up nine per cent Tuesday.
Roger Biduk writes:
The TSX financial sector was up 1.62 per cent as investors wait for earnings reports from TD Bank (TSX:TD), CIBC (TSX:CM) and National Bank (TSX:NA) Thursday and from Royal Bank (TSX:RY) Friday. Scotiabank (TSX:BNS) reported Tuesday that its fourth-quarter profit fell 67 per cent to $315 million. TD Bank gained $1.38 to $42.50 but National Bank (TSX:NA) gave back 57 cents to $37.82.
The base metals sector retreated 5.77 per cent after American mining giant Freeport-McMoRan Copper & Gold Inc. said Wednesday it would suspend operations and lay off the bulk of its workers at a New Mexico mine, cut production estimates through 2010 and curb other costs as it struggles to cope with plummeting copper prices.
Copper prices have fallen from about $3.61 per pound at the end of September to an average of $1.69 last month. On Wednesday, copper dropped 2.9 per cent to US$1.5545 a pound.
Teck Cominco Ltd. (TSX:TCK.B) ran down 43 cents nine per cent to $4.35 while Inmet Mining (TSX:IMN) gave back $1.54 or 10 per cent to $13.71.
The gold sector was off 3.75 per cent as February bullion contract in New York moved down $12.80 to US$770.50 an ounce. Goldcorp (TSX:G) faded $1.82 to $29.28.
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Roger Biduk - Bay Street Lower at Midday
Roger Biduk writes:
The Toronto stock market was lower but well off early levels as financial stocks moved into positive territory and investors sent Research In Motion Ltd. (TSX: RIM.TO) stock higher despite some glum news from the BlackBerry maker.
Toronto's S&P/TSX composite index fell 43.2 points to 8,284.6 after losing 78 points Tuesday.
The TSX Venture Exchange moved down 7.24 points to 723.86.
Following a negative start, RIM shares were up $1.97 to $48.43 even as it said after the market close Tuesday that it sold 300,000 fewer BlackBerrys than expected in the just-completed quarter, at 2.6 million.
It expects to report adjusted earnings of 81 to 83 cents per share for its third quarter ended Nov. 29, on revenue of US$2.75 billion to $2.78 billion. Analysts were expecting 90 cents per share on revenue of US$2.93 billion.
Meanwhile, RIM on Wednesday announced a $66-million takeover bid for data encryption specialist Certicom Corp. (TSX: CIC.TO. Certicom shares leaped 76 per cent, gaining 65 cents to $1.50indicating the market is set to accept the RIM offer.
The Canadian dollar was down 0.52 cent to 79.32 cents US amid ongoing economic gloom and political wrangling in Ottawa.
Crude inventories for last week increased by 456,000 barrels, compared to the expected increase of one million. Gasoline inventories fell 1.5 million barrels.
However, the TSX energy sector was down 2.25 per cent as the price of oil gained 48 cents to US$47.44 a barrel on the New York Mercantile Exchange. The dip followed Tuesday's slide of $2.32 in the near-month crude contract to the lowest level since May 2005.
Suncor Energy (TSX: SU.TO) advanced 48 cents to $23.61. Nexen Inc. was down $4.63 or 19 per cent to $19.25, on a cooling of takeover speculation that had driven the stock up nine per cent Tuesday.
The TSX financial sector was up one per cent as investors wait for earnings reports from TD Bank (TSX: TD.TO), CIBC (TSX: CM.TO) and National Bank (TSX: NA.TO) Thursday and from Royal Bank (TSX: RY.TO) Friday. Scotiabank (TSX: BNS.TO) reported Tuesday that its fourth-quarter profit fell 67 per cent to $315 million. Royal Bank was up 50 cents to $38.40.
The February bullion contract in New York moved down $$1.40 to US$781.90 an ounce.
Overseas, the FTSE 100 stock index added 0.15 per cent in London, while Germany's DAX gave back 0.8 per cent and Paris CAC 40 moved ahead 0.9 per cent.
Tokyo's Nikkei index closed with a gain of 1.8 per cent, and Hong Kong's Hang Seng advanced 1.4 per cent.
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The Toronto stock market was lower but well off early levels as financial stocks moved into positive territory and investors sent Research In Motion Ltd. (TSX: RIM.TO) stock higher despite some glum news from the BlackBerry maker.
Toronto's S&P/TSX composite index fell 43.2 points to 8,284.6 after losing 78 points Tuesday.
The TSX Venture Exchange moved down 7.24 points to 723.86.
Following a negative start, RIM shares were up $1.97 to $48.43 even as it said after the market close Tuesday that it sold 300,000 fewer BlackBerrys than expected in the just-completed quarter, at 2.6 million.
It expects to report adjusted earnings of 81 to 83 cents per share for its third quarter ended Nov. 29, on revenue of US$2.75 billion to $2.78 billion. Analysts were expecting 90 cents per share on revenue of US$2.93 billion.
Meanwhile, RIM on Wednesday announced a $66-million takeover bid for data encryption specialist Certicom Corp. (TSX: CIC.TO. Certicom shares leaped 76 per cent, gaining 65 cents to $1.50indicating the market is set to accept the RIM offer.
The Canadian dollar was down 0.52 cent to 79.32 cents US amid ongoing economic gloom and political wrangling in Ottawa.
Crude inventories for last week increased by 456,000 barrels, compared to the expected increase of one million. Gasoline inventories fell 1.5 million barrels.
However, the TSX energy sector was down 2.25 per cent as the price of oil gained 48 cents to US$47.44 a barrel on the New York Mercantile Exchange. The dip followed Tuesday's slide of $2.32 in the near-month crude contract to the lowest level since May 2005.
Suncor Energy (TSX: SU.TO) advanced 48 cents to $23.61. Nexen Inc. was down $4.63 or 19 per cent to $19.25, on a cooling of takeover speculation that had driven the stock up nine per cent Tuesday.
The TSX financial sector was up one per cent as investors wait for earnings reports from TD Bank (TSX: TD.TO), CIBC (TSX: CM.TO) and National Bank (TSX: NA.TO) Thursday and from Royal Bank (TSX: RY.TO) Friday. Scotiabank (TSX: BNS.TO) reported Tuesday that its fourth-quarter profit fell 67 per cent to $315 million. Royal Bank was up 50 cents to $38.40.
The February bullion contract in New York moved down $$1.40 to US$781.90 an ounce.
Overseas, the FTSE 100 stock index added 0.15 per cent in London, while Germany's DAX gave back 0.8 per cent and Paris CAC 40 moved ahead 0.9 per cent.
Tokyo's Nikkei index closed with a gain of 1.8 per cent, and Hong Kong's Hang Seng advanced 1.4 per cent.
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Tuesday, December 2, 2008
Roger Biduk - Bay Street Lower on Financials
Roger Biduk writes:
The Toronto stock market closed lower Tuesday as rising energy and gold stocks failed to compensate for a slide in bank stocks a day after one of the worst declines on record.
The S&P/TSX composite index closed down 78.4 points to 8,327.81 - after plunging 9.3 per cent Monday.
The TSX Venture Exchange headed down 8.02 points to 731.1.
The Canadian dollar was off 0.37 cent to 79.84 cents U.S., as the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support and the minority Conservatives look for a way to retain power.
However, analysts note that the political uncertainty is likely not to blame for the weak performance on the TSX.
TSX financials fell four per cent with Bank of Nova Scotia (TSX:BNS) down $2.47 or seven per cent to $32.38 after the bank said its fourth-quarter profits fell 67 per cent to $315 million.
Manulife Financial Corp. (TSX:MFC) also announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. Its shares traded down 57 cents to $19.89
The TSX energy sector, pounded by a 13 per cent slide Monday, was 1.65 per cent higher. The January crude contract moved $2.32 lower to US$46.96, added to a slide of over US$5 Monday after OPEC failed to agree on a production cut last weekend.
EnCana Corp. (TSX:ECA) rose $1.62 to $53.94 while Suncor Energy Corp. (TSX:SU) was down 77 cents to $23.13 on the TSX.
However, Nexen Inc. (TSX:NXY) soared $2.03 or 9.3 per cent to $23.88 after going as high as $29.10 - its biggest one day jump in 21 years - after The Financial Times Alphaville website, citing unnamed sources, said French energy major Total SA is poised to make a bid for the Calgary-based international oil and gas firm. The report, largely paralleling previous speculation, said Total's board is meeting to discuss an offer worth up to $19.7 billion, or $38 per share.
Shares in Opti Canada (TSX:OPC), Nexen's partner in the Long Lake steam-assisted gravity drainage project in the Athabasca oilsands, were up 54 cents or 27 per cent at $2.54.
The gold sector was the biggest percentage advancer, up 7.4 per cent as bullion in New York gained $6.50 to US$788.30 an ounce. Barrick Gold Corp. (TSX:ABX) moved ahead $1.99 to $34.64.
Shares of BlackBerry maker Research In Motion (TSX:RIM) slid below their lowest level in more than a year on Tuesday, down $3.75 to $46.46, going as low as $44.60 - after J.P. Morgan analyst Paul Coster warned that sales of the smartphone with businesses and consumers will be slower due to the economic downturn.
Sierra Wireless Inc. (TSX:SW) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell $2.64 or 27.27 per cent to $7.04.
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The Toronto stock market closed lower Tuesday as rising energy and gold stocks failed to compensate for a slide in bank stocks a day after one of the worst declines on record.
The S&P/TSX composite index closed down 78.4 points to 8,327.81 - after plunging 9.3 per cent Monday.
The TSX Venture Exchange headed down 8.02 points to 731.1.
The Canadian dollar was off 0.37 cent to 79.84 cents U.S., as the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support and the minority Conservatives look for a way to retain power.
However, analysts note that the political uncertainty is likely not to blame for the weak performance on the TSX.
TSX financials fell four per cent with Bank of Nova Scotia (TSX:BNS) down $2.47 or seven per cent to $32.38 after the bank said its fourth-quarter profits fell 67 per cent to $315 million.
Manulife Financial Corp. (TSX:MFC) also announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. Its shares traded down 57 cents to $19.89
The TSX energy sector, pounded by a 13 per cent slide Monday, was 1.65 per cent higher. The January crude contract moved $2.32 lower to US$46.96, added to a slide of over US$5 Monday after OPEC failed to agree on a production cut last weekend.
EnCana Corp. (TSX:ECA) rose $1.62 to $53.94 while Suncor Energy Corp. (TSX:SU) was down 77 cents to $23.13 on the TSX.
However, Nexen Inc. (TSX:NXY) soared $2.03 or 9.3 per cent to $23.88 after going as high as $29.10 - its biggest one day jump in 21 years - after The Financial Times Alphaville website, citing unnamed sources, said French energy major Total SA is poised to make a bid for the Calgary-based international oil and gas firm. The report, largely paralleling previous speculation, said Total's board is meeting to discuss an offer worth up to $19.7 billion, or $38 per share.
Shares in Opti Canada (TSX:OPC), Nexen's partner in the Long Lake steam-assisted gravity drainage project in the Athabasca oilsands, were up 54 cents or 27 per cent at $2.54.
The gold sector was the biggest percentage advancer, up 7.4 per cent as bullion in New York gained $6.50 to US$788.30 an ounce. Barrick Gold Corp. (TSX:ABX) moved ahead $1.99 to $34.64.
Shares of BlackBerry maker Research In Motion (TSX:RIM) slid below their lowest level in more than a year on Tuesday, down $3.75 to $46.46, going as low as $44.60 - after J.P. Morgan analyst Paul Coster warned that sales of the smartphone with businesses and consumers will be slower due to the economic downturn.
Sierra Wireless Inc. (TSX:SW) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell $2.64 or 27.27 per cent to $7.04.
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Roger Biduk - Bay Street flat at Midday
Roger Biduk writes:
The Toronto stock market struggled to find traction a day after one of its worst declines on record.
Toronto's S&P/TSX composite index lost tentative early gains and was down 11 points to 8,395.2 - after plunging 864 points or 9.3 per cent Monday. That was the Toronto market's worst one-day drop since the October 1987 crash, erasing more than half of last week's 14 per cent gain.
The Canadian dollar was ahead 0.04 cent to 80.35 cents US, against a background of political tumult in Ottawa, where the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support, while the minority Conservatives look for a way to retain power.
The TSX Venture Exchange headed up 1.59 points to 740.71.
Canadian investors are marking the passing of Ted Rogers, creator of the country's largest cable-TV and cellphone operator with other interests ranging from Citytv to Maclean's magazine to the Toronto Blue Jays. The founder of Rogers Communications Inc. (TSX: RCI-B.TO) died at home at age 75, leaving open the question of succession, though his family controls the company through multiple-voting shares. Rogers shares were off 31 cents to $34.21.
Investors are looking to Washington where top executives of the Detroit Three automakers are set to submit to Congress their plans for revving the companies up with government money. General Motors, Ford and are hoping for a US$25-billion taxpayer top-up, while they report November sales figures that are expected to be grim.
GM shares rose 33 cents to US$4.92 while Ford added 30 cents to US$2.85.
The TSX energy sector, pounded by a 13 per cent slide Monday as crude oil tumbled US$5.15 a barrel, was up 1.6 per cent Tuesday morning. The January crude contract edged up 30 cents to US$49.58 a barrel after going as low as $47.36 overnight. EnCana Corp. (TSX: ECA.TO) was up $1.76 to C$54.08 on the TSX.
The gold sector was up by more than five per cent as bullion in New York gained $5.06to US$781.86 an ounce. Barrick Gold Corp. (TSX: ABX.TO) moved ahead $1.47 to $34.12.
Financials were down 1.8 per cent as Manulife Financial Corp. (TSX: MFC.TO) announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. The new stock is priced at $19.40 per share, and Manulife traded down $1.05 to $19.41with a 52-week range between $42.14 and $16.28.
Bank of Nova Scotia (TSX: BNS.TO) was down 58 cents to $34.27 ahead of its quarterly earnings report later in the session.
Techs were also a major drag with Research In Motion Ltd. (TSX: RIM.TO) down $4.14 to $46.07.
Sierra Wireless Inc. (TSX: SW.TO) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell 87 cents to $8.81.
Asian markets carried through on Wall Street's slide, with Tokyo's Nikkei index closing down 6.4 per cent and the Hong Kong Hang Seng losing five per cent.
London's FTSE 100 index inched 0.36 per cent lower, while the German DAX is up 0.8 per cent and the French CAC-40 advanced 1.3 per cent.
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The Toronto stock market struggled to find traction a day after one of its worst declines on record.
Toronto's S&P/TSX composite index lost tentative early gains and was down 11 points to 8,395.2 - after plunging 864 points or 9.3 per cent Monday. That was the Toronto market's worst one-day drop since the October 1987 crash, erasing more than half of last week's 14 per cent gain.
The Canadian dollar was ahead 0.04 cent to 80.35 cents US, against a background of political tumult in Ottawa, where the Liberals and NDP say they're ready to govern in a coalition with Bloc Quebecois support, while the minority Conservatives look for a way to retain power.
The TSX Venture Exchange headed up 1.59 points to 740.71.
Canadian investors are marking the passing of Ted Rogers, creator of the country's largest cable-TV and cellphone operator with other interests ranging from Citytv to Maclean's magazine to the Toronto Blue Jays. The founder of Rogers Communications Inc. (TSX: RCI-B.TO) died at home at age 75, leaving open the question of succession, though his family controls the company through multiple-voting shares. Rogers shares were off 31 cents to $34.21.
Investors are looking to Washington where top executives of the Detroit Three automakers are set to submit to Congress their plans for revving the companies up with government money. General Motors, Ford and are hoping for a US$25-billion taxpayer top-up, while they report November sales figures that are expected to be grim.
GM shares rose 33 cents to US$4.92 while Ford added 30 cents to US$2.85.
The TSX energy sector, pounded by a 13 per cent slide Monday as crude oil tumbled US$5.15 a barrel, was up 1.6 per cent Tuesday morning. The January crude contract edged up 30 cents to US$49.58 a barrel after going as low as $47.36 overnight. EnCana Corp. (TSX: ECA.TO) was up $1.76 to C$54.08 on the TSX.
The gold sector was up by more than five per cent as bullion in New York gained $5.06to US$781.86 an ounce. Barrick Gold Corp. (TSX: ABX.TO) moved ahead $1.47 to $34.12.
Financials were down 1.8 per cent as Manulife Financial Corp. (TSX: MFC.TO) announced it is issuing $2.125 billion in new common shares, and expects to report a $1.5-billion fourth-quarter loss because of annuity provisions. The new stock is priced at $19.40 per share, and Manulife traded down $1.05 to $19.41with a 52-week range between $42.14 and $16.28.
Bank of Nova Scotia (TSX: BNS.TO) was down 58 cents to $34.27 ahead of its quarterly earnings report later in the session.
Techs were also a major drag with Research In Motion Ltd. (TSX: RIM.TO) down $4.14 to $46.07.
Sierra Wireless Inc. (TSX: SW.TO) is bidding 218 million euros - C$345 million - for Wavecom S.A., a French provider of machine-to-machine wireless technology. Sierra shares fell 87 cents to $8.81.
Asian markets carried through on Wall Street's slide, with Tokyo's Nikkei index closing down 6.4 per cent and the Hong Kong Hang Seng losing five per cent.
London's FTSE 100 index inched 0.36 per cent lower, while the German DAX is up 0.8 per cent and the French CAC-40 advanced 1.3 per cent.
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Roger Biduk - Energy & Financials Sink Bay Street
Roger Biduk writes:
A broad selloff on the Toronto stock market led by the energy and financial sectors on Monday sent the index to its worst one-day percentage loss since the crash of October 1987.
The S&P/TSX composite index plunged 864.41 points or 9.3 per cent to 8,406.21 after gaining just over 1,100 points last week. The 1987 fall erased 11.3 per cent from the Toronto market.
The TSX Venture Exchange declined 27.23 points to 739.12.
The prospect that the Conservative minority government could be ousted likely had some impact on the selloff.
But analysts noted investors have plenty of other worries, including definitive word the U.S. economy is contracting and a shaky start to the holiday shopping season.
The CDN$ closed down 0.53 cent to 80.31 cents U.S. as oil prices also retreated.
Statistics Canada, meanwhile, said the Canadian economy expanded 0.1 per cent in September, which most economists believe was Canada's last month of growth before what could be a prolonged decline. The third quarter of the year showed 0.3 per cent growth in gross domestic product.
The energy sector was a major TSX loser, down 13 per cent as the January crude oil contract fell $5.15 to US$49.28 a barrel on the New York Mercantile Exchange after OPEC did not cut production at a weekend meeting in Cairo. OPEC meets again Dec. 17.
EnCana Corp. (TSX:ECA) fell $7.68 or 12.8 per cent to $52.32 while Petro-Canada (TSX:PCA) surrendered $5.58 or 16.5 per cent to $28.15.
Financial stocks were down 8.75 per cent ahead of earnings reports from four of the six big banks later this week. Royal Bank fell $3.74 to $39.44 while TD lost $3.75 to $42.25.
The gold index pulled back 13.9 per cent as bullion fell $42.20 to US$776.80 an ounce on the Nymex. Barrick Gold Corp. (TSX:ABX) was down $5.07 to $32.65 while Goldcorp (TSX:G) faded $5.85 to $29.15.
Base metals sagged 12 per cent with Teck Cominco (TSX:TCK.B) off $1.04 to $4.96 while HudBay Minerals (TSX:HBM) declined 51 cents to $3.42.
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A broad selloff on the Toronto stock market led by the energy and financial sectors on Monday sent the index to its worst one-day percentage loss since the crash of October 1987.
The S&P/TSX composite index plunged 864.41 points or 9.3 per cent to 8,406.21 after gaining just over 1,100 points last week. The 1987 fall erased 11.3 per cent from the Toronto market.
The TSX Venture Exchange declined 27.23 points to 739.12.
The prospect that the Conservative minority government could be ousted likely had some impact on the selloff.
But analysts noted investors have plenty of other worries, including definitive word the U.S. economy is contracting and a shaky start to the holiday shopping season.
The CDN$ closed down 0.53 cent to 80.31 cents U.S. as oil prices also retreated.
Statistics Canada, meanwhile, said the Canadian economy expanded 0.1 per cent in September, which most economists believe was Canada's last month of growth before what could be a prolonged decline. The third quarter of the year showed 0.3 per cent growth in gross domestic product.
The energy sector was a major TSX loser, down 13 per cent as the January crude oil contract fell $5.15 to US$49.28 a barrel on the New York Mercantile Exchange after OPEC did not cut production at a weekend meeting in Cairo. OPEC meets again Dec. 17.
EnCana Corp. (TSX:ECA) fell $7.68 or 12.8 per cent to $52.32 while Petro-Canada (TSX:PCA) surrendered $5.58 or 16.5 per cent to $28.15.
Financial stocks were down 8.75 per cent ahead of earnings reports from four of the six big banks later this week. Royal Bank fell $3.74 to $39.44 while TD lost $3.75 to $42.25.
The gold index pulled back 13.9 per cent as bullion fell $42.20 to US$776.80 an ounce on the Nymex. Barrick Gold Corp. (TSX:ABX) was down $5.07 to $32.65 while Goldcorp (TSX:G) faded $5.85 to $29.15.
Base metals sagged 12 per cent with Teck Cominco (TSX:TCK.B) off $1.04 to $4.96 while HudBay Minerals (TSX:HBM) declined 51 cents to $3.42.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Monday, December 1, 2008
Roger Biduk - Bay Street Lower at Midday
The Toronto stock market was down more than 600 points late in the morning, its slide led by big losses in energy and financial stocks - the two most powerful sectors - erasing almost half of its 14 per cent gain last week.
The S&P/TSX composite index fell 640.7 points to 8,629.9.
The TSX Venture Exchange declined 19.46 points to 746.89.
Political turmoil in Ottawa and the prospects that the federal Conservative minority government could be ousted likely had some impact on the selloff, but analysts noted investors have plenty of other worries right now - including a disappointing start to the U.S. holiday season that has deepened worries about the American economy.
In Ottawa, sources said the Liberals and NDP have drafted a plan for Canada's first coalition federal government since the First World War, aiming to govern jointly until the middle of 2011. But they would need support from the Bloc Quebecois. Meanwhile, the Conservative minority government on Sunday moved the budget date ahead to Jan. 27.
The political uncertainty and another tumble in oil prices sent the Canadian dollar down 0.12 cent to 80.72 cents US.
Canadian economic data painted a bright picture of stronger economic growth.
Statistics Canada said the economy expanded 0.1 per cent in September, which most economists believe was the last month of growth before what could be a prolonged decline. The third quarter of the year showed 0.3 per cent growth in gross domestic product.
The energy sector was a major loser in early TSX action, down more than 10 per cent as the January crude oil contract fell $3.87 to US$50.56 a barrel on the New York Mercantile Exchange after OPEC did not cut production at a weekend meeting in Cairo. OPEC meets again Dec. 17.
EnCana Corp. (TSX: ECA.TO) fell $6.37 to $53.63 while Petro-Canada (TSX: PCA.TO) surrendered $4.42 to $29.32.
Roger Biduk writes;
Financial stocks were down seven per cent ahead of earnings reports from four of the six big banks later this week. Royal Bank fell $3.30 to $39.91 while TD lost $2.71 to $43.29
The gold index pulled back 10 per cent as bullion fell $44.20 to US$772 an ounce on the Nymex. Barrick Gold Corp. (TSX: ABX.TO) was down $3.55 to $34.17.
Base metals gave back almost 11 per cent with Teck Cominco Corp. (TSX: TCK-B.TO) off 78 cents to $5.22.
Overseas markets were also down sharply on deepening worries about economic conditions.
London's FTSE 100 index fell five per cent, while Frankfurt's DAX retreated 6.1 per cent and the Paris CAC 40 slid 5.1 per cent as specialist financial services company London Scottish Bank announced that it has gone into administration.
Asian markets closed lower with the Nikkei 225 stock average in Tokyo down 115.05 points, or 1.4 per cent, at 8,397.22 after advancing 7.6 per cent last week.
Markets in South Korea, Australia and Singapore also fell, while India's benchmark Sensex index reversed early gains and closed with a loss of 2.8 per cent at 8,839.87 in the wake of the Mumbai terrorist attacks.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
The S&P/TSX composite index fell 640.7 points to 8,629.9.
The TSX Venture Exchange declined 19.46 points to 746.89.
Political turmoil in Ottawa and the prospects that the federal Conservative minority government could be ousted likely had some impact on the selloff, but analysts noted investors have plenty of other worries right now - including a disappointing start to the U.S. holiday season that has deepened worries about the American economy.
In Ottawa, sources said the Liberals and NDP have drafted a plan for Canada's first coalition federal government since the First World War, aiming to govern jointly until the middle of 2011. But they would need support from the Bloc Quebecois. Meanwhile, the Conservative minority government on Sunday moved the budget date ahead to Jan. 27.
The political uncertainty and another tumble in oil prices sent the Canadian dollar down 0.12 cent to 80.72 cents US.
Canadian economic data painted a bright picture of stronger economic growth.
Statistics Canada said the economy expanded 0.1 per cent in September, which most economists believe was the last month of growth before what could be a prolonged decline. The third quarter of the year showed 0.3 per cent growth in gross domestic product.
The energy sector was a major loser in early TSX action, down more than 10 per cent as the January crude oil contract fell $3.87 to US$50.56 a barrel on the New York Mercantile Exchange after OPEC did not cut production at a weekend meeting in Cairo. OPEC meets again Dec. 17.
EnCana Corp. (TSX: ECA.TO) fell $6.37 to $53.63 while Petro-Canada (TSX: PCA.TO) surrendered $4.42 to $29.32.
Roger Biduk writes;
Financial stocks were down seven per cent ahead of earnings reports from four of the six big banks later this week. Royal Bank fell $3.30 to $39.91 while TD lost $2.71 to $43.29
The gold index pulled back 10 per cent as bullion fell $44.20 to US$772 an ounce on the Nymex. Barrick Gold Corp. (TSX: ABX.TO) was down $3.55 to $34.17.
Base metals gave back almost 11 per cent with Teck Cominco Corp. (TSX: TCK-B.TO) off 78 cents to $5.22.
Overseas markets were also down sharply on deepening worries about economic conditions.
London's FTSE 100 index fell five per cent, while Frankfurt's DAX retreated 6.1 per cent and the Paris CAC 40 slid 5.1 per cent as specialist financial services company London Scottish Bank announced that it has gone into administration.
Asian markets closed lower with the Nikkei 225 stock average in Tokyo down 115.05 points, or 1.4 per cent, at 8,397.22 after advancing 7.6 per cent last week.
Markets in South Korea, Australia and Singapore also fell, while India's benchmark Sensex index reversed early gains and closed with a loss of 2.8 per cent at 8,839.87 in the wake of the Mumbai terrorist attacks.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
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