News Column

Stocks continue slump

May 30, 2014



CN, banks in picture







Stock markets in Toronto looked to finish the week the same way they started, continuing their downward plunge as somewhat uneasy economic figures were released.

The S&P/TSX composite index fell 33.68 points to begin the week's and month's last trading day at 14,555.27.

The Canadian dollar eased 0.01 cents to 92.18 cents U.S.

Canadian National Railway CEO Claude Mongeau said on Thursday he expects U.S. regulators to phase out use of DOT-111 tank cars in three to five years, following a deadly explosion in Quebec last year. CN shares dipped two cents to $65.48

CIBC raised the rating on Scotiabank to outperform from sector perform. Scotiabank shares were flat at $69.13.

KBW, NBF each raised the target price on CIBC, whose shares began Friday down $1.10 to $96.58.

CIBC cut the rating on Royal Bank of Canada to sector perform from sector outperform. RBC shares stepped back 29 cents to $74.47.

It's a big day for economic news, as Statistics Canada reported that the Gross Domestic Product rose 0.3% in the first quarter, following 0.7% growth in the fourth quarter of 2013. This was the smallest increase since the fourth quarter of 2012. On a monthly basis, real GDP by industry edged up 0.1% in March.

The agency's industrial product price index declined 0.2% in April, and its raw materials index increased 0.1% in the same month.

ON BAYSTREET

The TSX Venture Exchange fell 2.06 points to 979.46.

All but two of the 14 Toronto subgroups were negative to begin the session, with global base metals down 1.3%, while metals and mining slid 1% and utilities headed lower 0.5%.

The two gainers were gold, up 0.3%, and telecoms, inching ahead 0.1%.

ON WALLSTREET

All three major U.S. stock markets were down modestly Friday, but are holding onto sizable monthly gains.

The Dow Jones Industrial Average dipped 14.03 points early Friday to 16,684.71

The S&P 500 gained 0.94 points to 1,920.97, and the NASDAQ composite index slid 3.02 points to 4,244.93

Salesforce shares were flat the company announced a partnership with Microsoft. The stock was one of the big moves pre-market, but the overall slip in stocks early Friday seems to have carried over to Salesforce.

Big Lots soared 11% after the retailer topped analyst earnings expectations and raised its outlook for the rest of the year.

Shares of Ann Taylor popped over 4% after the women's apparel company beat earnings estimates, boosted by sales increases in its more casual LOFT brand.

Ford stock was under pressure after the automaker announced four recalls affecting at least 1.4 million vehicles. The stock slipped modestly in early trading.

Prices for 10-year U.S. Treasuries backtracked, raising yields to 2.49% from Thursday's 2.45%. Treasury prices and yields move in opposite directions

Oil prices acquired 86 cents to $103.58 U.S. a barrel.

Gold prices shed $4.20 to $1,255.10 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)