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Another stumble for stocks

January 22, 2014

BlackBerry, Saputo in focus Stocks in Toronto again turned south early Wednesday morning, as investors turned cautious over the Bank of Canada's rate decision. However, losses could be capped after the International Monetary Fund's upgrade of world forecasts lifted sentiment. The S&P/TSX composite index slipped 15.89 points to begin the day at 13,935.88 The Canadian dollar nipped 0.03 cents , to 91.20 cents U.S., following the bank rate decision. BlackBerry said on Tuesday it intends to divest the majority of its real estate holdings in Canada , as it seeks to bolster its balance sheet and turn around its fortunes. BlackBerry shares climbed 56 cents , or 5.2%, to $11.44 . Saputo Inc. said it has secured majority control of Australia's Warrnambool Cheese and Butter Factory Co Holdings Ltd, putting pressure on rival bidder Murray Goulburn Co -operative Co to concede defeat. Saputo shares took on 26 cents to $52.80 . Penn West Petroleum Ltd. said on Tuesday it expects lower output in 2014 as it sells or shuts in wells. Penn West shares slid $1.04 , or 11.5%, to $7.99 . On the Canadian economic calendar, Bank of Canada Governor Stephen Poloz announced the bank is leaving its overnight lending rate at 1%, where it's been since September 2010 . ON BAYSTREET The TSX Venture Exchange poked higher by 0.40 points to 990.36. All but five of the 14 Toronto subgroups were lower soon after the opening bell, as the metals and mining group and gold each lost 1.2%, with materials scaling back 1%. The four gainers were led by information technology, up 1.1%, real-estate, up 0.3%, and consumer staples, up 0.2%. Health-care stocks were flat in the first hour of trading. ON WALLSTREET Investors remained in a cautious mood Wednesday following another mixed batch of earnings reports. The Dow Jones Industrial Average weakened 18.83 points to open at 16,395.61, as a disappointing outlook from IBM weighed on the blue chip index. IBM shares declined more than 4%. The S&P 500 index improved one point, however, to 1,844.80. The NASDAQ gained 6.90 points to 4,232.66. Shares of Advanced Micro Devices tumbled after the company's guidance for the current quarter fell short of expectations. It's the latest bit of bad news for semiconductor stocks following last week's earnings from Intel and the news that Intel was planning to cut jobs this year. Coach shares also fell after the luxury retailer's earnings and sales came in below expectations. eBay and Netflix are on deck to report results after the closing bell. Overall, earnings are expected to be up 5.9% in the fourth quarter for the companies in the S&P 500, according to FactSet Research. On the bright side, BlackBerry shares surged again after the smartphone maker said it was unloading the majority of its Canadian real estate assets. Priceline shares continued to trade above $1,200 U.S. per share, after hitting the milestone for the first time Tuesday. Priceline has the highest stock price of any company in the S&P 500. Google is trailing it with a price of around $1,165 . Prices for 10-year U.S. Treasuries were down, corresponding raising yields to 2.85% from Tuesday's 2.83%. Treasury prices and yields move in opposite directions. Oil prices strengthened 79 cents to $95.76 U.S. a barrel. Gold prices shed $1.30 to $1,240.50 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)


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