News Column

Stocks appear to open lower

June 16, 2014



Dorel, Sears in Canada







The Toronto Stock market looked to start off lower on Monday as turmoil in Iraq pushed oil to just past $107 U.S. a barrel and traders looked ahead to the U.S. Federal Reserve's monthly policy meeting later in the week.

The S&P/TSX composite index gained 91.98 points to finish Friday and the week at 15,001.61

The Canadian dollar slipped 0.20 cents to 91.92 U.S. early Monday

In Canada, Dorel Industries Inc. says it's buying Hong-Kong-based Lerado Group, one of the largest manufacturers of infant and juvenile products in China, for $120 million U.S. The purchase will provide Dorel with its first company-owned factories in Asia. The acquisition includes four plants, three in China and one based in Taiwan.

Sears Canada says it has an agreement to develop its property at the North Hill Shopping Centre in Calgary with the Concord Pacific Group of Companies. The development of its almost five-hectare site would include residential high-rises with the potential for some retail sites, while Sears says it will continue to operate its store at the North Hill Shopping Centre.

The agreement would see the sale of a 50% interest in the site to Concord for a value of about $15 million, and Concord would manage most of the development.

Aveda Transportation and Energy Services says it's buying the U.S.-based rig moving assets of Precision Drilling Corp. for $24 million U.S. Aveda says the deal, expected to close of July 1, adds to its U.S. assets. The company is acquiring rig moving equipment, trucks, trailers, loaders and cranes from Calgary-based Precision Drilling.

On the economic slate, Statistics Canada reported that investors offshore added $10.1 billion of Canadian securities to their holdings, marking the highest such acquisition in a year. Meanwhile, Canadian investment in foreign securities slowed to $2.5 billion.

Elsewhere, the Canadian Real Estate Association was due to report monthly home sales activity for May this morning.

ON BAYSTREET

The TSX Venture Exchange dipped 0.64 points Friday to 997.33

ON WALLSTREET

Markets were unsettled Monday as geopolitical concerns took a toll on investor confidence.

Ahead of the opening bell, futures for the Dow Jones Industrials doffed 24 points, or 0.1%, to 16,673. Futures for the S&P 500 dipped 5.10 points, or 0.3%, to 1,923.20, and futures for the NASDAQ fell 8.25 points, or 0.2%, to 3,760.75.

Starbucks shares were lower by roughly 2% in pre-market trading. The company announced Sunday night that it will begin paying up to $30,000 U.S. per employee for college courses.

Medtronic shares surged 11% in pre-market trading after the company announced it will buy Ireland-based Covidien for $42.9 billion U.S.

The U.S. Federal Reserve will release its monthly industrial production report at 9:15 a.m. ET.

The Federal Reserve will discuss monetary policy on Tuesday and Wednesday. The meeting will be closely watched by investors.

The latest trouble in Ukraine and fighting in Iraq dominated the news. Prices for gold and oil were higher.

Russia said it will cut off gas exports to Ukraine. The price of natural gas was up by around 1%.

Meanwhile, oil prices were on the rise as militants extended their control in Iraq.

Oil prices nosed up two cents to $106.93 U.S. a barrel

Gold prices gained $6.70 to $1,280.90 U.S. an ounce.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Baystreet Stock Market Update (Canada)


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