News Column

Miners power Toronto higher

February 14, 2014



Markets closed Monday





WEEKLY MARKET WRAP UP



Rising mining stocks helped push the Toronto stock market higher Friday as traders digested a mixed bag of economic indicators.

The S&P/TSX composite index gained 53.11 points to end the week at 14,054.76. Markets in Toronto are closed Monday for Family Day.

The Canadian dollar fell 0.03 cents to 91.06 cents U.S.

The TSX gold sector gained ground as Barrick Gold climbed 28 cents to $22.36

.

The base metals component was ahead, with March copper up one cent at $3.26 U.S. a pound. Teck Resources took on 25 cents to $26.25.

The energy sector was flat, though Imperial Oil gathered 44 cents to $47.71


Financials were up following a number of positive earnings reports this week from insurers. TD was up 30 cents to $49.28.

On the earnings front, Enbridge Inc. posted a fourth-quarter net loss of $267 million as it recognized lower values for some of its assets.

Ex-items, the pipeline and energy services company earned 44 cents a share, two cents short of estimates and its shares added 45 cents to $47.82.

Brookfield Asset Management Inc. posted fourth-quarter net income of $850 million, or $1.08 per share. Funds from operations increased to $1.03 billion, or $1.59 per share, more than double a year earlier and its shares gained 47 cents to $43.25.

And sports equipment company Bauer Performance Sports Ltd. has signed a deal to buy the baseball and softball business of Easton-Bell Sports for $330 million U.S. Bauer shares slipped 33 cents to $13.85.

On the world economic front, lightly stronger-than-expected growth in Germany and France pushed the euro-zone's recovery up a gear in the fourth quarter and offered potential for a more robust 2014.

Closer to home, Statistics Canada reported that manufacturing sales in Canada decreased 0.9% in December, mostly the result of a dip by transportation equipment sales.

ON BAYSTREET

The TSX Venture Exchange marched upward 9.90 points to 996.35

All but three of the 14 Toronto subgroups were higher, led by gold, up 2.1%, materials, up 1.3%, and global base metals, up 1.1%

The three laggards were health-care, down 0.4%, energy, off 0.2%, and industrials, easing 0.04%.

ON WALLSTREET

Investors showed their affection for stocks on Valentine's Day by sending the Dow up more than 120 points and pushing gold prices to new highs for the year.

The Dow Jones Industrial Average popped 126.80 points to close Friday at 16,154.39.

The S&P 500 index moved higher 8.80 points to 1,838.63. The NASDAQ recovered 3.36 points to 4,232.41. American markets are closed Monday for Presidents Day.

After a lackluster January, the market has been on a tear in February. All three indexes ended the week higher.

The S&P 500 has gained more than 2% this week and is a few points away from its record closing high. The Dow rose than 2%, while the NASDAQ added nearly 3% and is now on a seven-day winning streak.

Gold has also gained momentum. The price of the precious metal rose above $1,320 U.S., the highest level since November, before settling. Gold rose 4% this week.

Weight Watchers shares plunged more than 26% after the company slashed its earnings forecast and CEO Jim Chambers said 2014 would be "challenging."

Shares of GNC and Vitamin Shoppe were also down sharply.

Medbox, which makes safes for marijuana dispensaries, were up more than 20%. Investors also bid up thinly-traded shares of companies like GreenGro andGrowLife, which support cannabis cultivation.

Jos. A. Bank shares edged higher after the clothing retailer announced that it was acquiring Eddie Bauer for $825 million U.S.. Shares of rival Men's Wearhouse, which is hoping to buy Jos. A. Bank, were lower too.

Shares of Trulia fell sharply after the real estate website said losses in the fourth quarter widened from last year.

Cliffs Natural Resources jumped 5% after the company's quarterly results beat analysts' expectations. The company also rejected a proposal from a hedge fund that is seeking to break the company up and replace its CEO. Cliffs was one of the biggest gainers in the S&P 500 Friday.

Shares of Campbell Soup rose after the company reported better-than-expected earnings. Hyatt Hotels also reported earnings that topped expectations, sending shares higher in early trading.

Kraft Foods shares gained following quarterly results that beat expectations.

New York indexes were turned mainly higher after the latest reading on U.S. consumer confidence, the University of Michigan's index, was unchanged at 81.2. A slight drop had been expected. Another report showed that harsh winter weather led to U.S. factory output falling by 0.8% during January.

Prices for 10-year U.S. Treasuries sagged a bit, raising yields to 2.75% from Thursday's 2.74%. Treasury prices and yields move in opposite directions

Oil prices dipped a penny to $100.34 U.S. a barrel.

Gold prices increased $18.40 to $1,318.50 U.S. an ounce.



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Source: Baystreet Stock Market Update (Canada)


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