News Column

TSX off at open

May 27, 2014

Augusta, Hudbay in focus

Markets in Toronto were slightly down on Tuesday, with a rise in shares of Bank of Nova Scotia following the lender's quarterly results offset by weakness in the gold-mining sector after the bullion price declined.

The S&P/TSX composite index drooped 34.65 points to open Tuesday at 14,681.04

The Canadian dollar strengthened 0.07 cents to 92.17 cents U.S.

Scotiabank said its second-quarter profit rose 14%, beating estimates, as higher income at its domestic banking and global wealth units offset a flat performance in international retail banking. Scotibank shares hiked 73 cents to $68.73.

Canada is probing two fatal crashes in General Motors vehicles which were subject to a recall to fix faulty switches and has received nine further complaints from drivers, the country's top transportation official told Reuters on Monday. GM shares gained 90 cents to $33.90.

Canaccord Genuity, National Bank Financial both cut the target price on Augusta Resource. Augusta shares were stationery at 7.5 cents

CIBC cut the rating on Hudbay Minerals to sector performer from outperform. Hudbay shares declined 30 cents to $10.28.


The TSX Venture Exchange ditched 4.36 points to 990.54.

All but three of the 14 Toronto subgroups lost ground in the first hour, with gold stocks tumbling 2.6%, materials collapsing 1.4%, and the metals and mining group dipping 0.4%.

The three gainers were financials, up 0.2%, telecoms, up 0.05% and industrials up 0.03%.


Stocks raced to fresh record highs at Tuesday's opening bell, powered by solid U.S. economic indicators and positive momentum following elections in Europe.

The Dow Jones Industrial Average grew 63.22 points to 16,669.49.

The S&P 500 gained 8.36 points to 1,908.89, and the NASDAQ composite index improved 31.30 points to 4,217.11

The early buying carried the S&P 500 into record territory and above the psychologically-important 1,900 level. The broad average closed at an all-time high of 1,900.5 on Friday.

The Dow is within striking distance of its record closing high of 16,715.4 that was set earlier this month.

It's quite the meat market this morning. Shares of Hillshire Brands popped 21% in early trading after Pilgrim's Pride offered to acquire the food maker for about $6.4 billion U.S. That offer complicates Hillshire's $4.3-billion U.S. proposed buyout of Pinnacle Foods.

Bank of America bounced 3% higher after saying it resubmitted a capital plan to the Federal Reserve after a calculation mistake scuttled the prior one. BofA said the new request is smaller than the previous one.

Shares of InterContinental Hotels rose 4% after Sky News reported the hotel chain rejected a secret 6-billion ($10-billion U.S.) bid by a U.S. suitor. The company declined to comment on the report.

AstraZeneca retreated 2% as investors reacted to Pfizer's confirmation that it would no longer pursue a mega-takeover of the British drug maker.

Economically speaking, Washington said U.S. orders for big ticket items like appliances grew 0.8% in April, slowing down from March's healthy pace but beating expectations for a narrow decline in durable goods orders.

U.S. home prices in 20 cities rose 0.9% in March from February, according to S&P/Case Shiller. That trumped forecasts for a more modest increase.

The Conference Board was scheduled to release its latest consumer confidence index this morning.

Prices for 10-year U.S. Treasuries were lower, raising yields to 2.54% from Friday's 2.53%. Treasury prices and yields move in opposite directions

Oil prices fell 68 cents to $103.67 U.S. a barrel.

Gold prices settled $13.90 to $1,277.80 U.S. an ounce.

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Source: Baystreet Stock Market Update (Canada)

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