News Column

Toronto flat at open

June 17, 2014



Bombardier in focus







The Toronto stock market inched forward early Tuesday, as international petroleum fears appeared to subside.

The S&P/TSX composite index gained 15.64 points to lead off Tuesday at 15,056.07. The index rose to within 80 points of its record high on Monday as positive investor sentiment spurred gains in its heavyweight financial and energy sectors.

The Canadian dollar was down 0.18 at 92.03 cents U.S.

Potash Corp of Saskatchewan said on Monday it will rescind layoff notices affecting 50 workers at its Penobsquis, New Brunswick, facility due to tight conditions in the granular potash market. Potash shares took on 7.5 cents to $40.20

Bombardier said on Monday that it has laid off more than 100 staff and let go 110 contract workers in the United States and Mexico owing to delays in the flight test program for its all-new Learjet 85 business jet. Bombardier shares docked a penny to $3.89

Raymond James raised the rating on Alacer Gold to outperform from market perform. Alacer shares backtracked two cents to $2.62.

ON BAYSTREET

The TSX Venture Exchange fell 3.57 points to 995.12

Nine of the 14 Toronto subgroups were higher with information technology up 0.7%, while consumer discretionary and financial stocks climbed 0.3% each.

The five laggards were weighed by fading energy stocks, down 0.4%, while gold and consumer staples stumbled 0.3% each.

ON WALLSTREET

It's shaping up to be another roller-coaster day as investors sort through muddled data and news.

The Dow Jones Industrials gained 20.99 points to begin Tuesday at 16,802

The S&P 500 nicked up 2.98 points to 1,940.76, and the NASDAQ composite regained 19.57 points to 4,349.68, thanks to strong gains from Tesla and Netflix

Coca Cola had quite the morning after activist investor David Winters of Wintergreen Advisors made speculative comments on Fox Business News that Coke could go private. Winters has been a vocal critic of the company lately, especially over the executive compensation plans.

Coke stock shot up as much as 1% at the opening bell on the news.

Warren Buffett, Coke's largest shareholder via his Berkshire Hathaway company, immediately responded telling CNBC there was "absolutely no chance" of that happening. Shares have since fallen back.

Amazon announced this morning that its new smartphone would only be carried by AT&T. Both stocks are up slightly.

In a reversal, New Jersey's lawmakers said that electric car manufacturer Tesla would again be able to sell its electric cars in that state directly to customers. A previous bill barred the practice.

The company's shares are over 3% higher, building on momentum from yesterday's gains after the company said it would share its patent information. Tesla stock is up over 50% for the year.

Today's the first day of the U.S. Federal Reserve's big meeting, and investors hotly anticipated the latest inflation data from the Bureau of Labor Statistics. May consumer prices were up 0.4% from April and 2.1% annually, beating economist expectations.

The so-called "core inflation" (which excludes volatile categories like food and energy) rose 0.3% from last month and 2% annually, also beating expectations.

Although the Fed is keeping a close eye on inflation and unemployment, this month's price data likely won't be enough to cause any immediate Fed changes. Fed Chair Janet Yellen has said she would be willing to see core inflation rise as much as 2.5%.

Investors also got data this morning on housing starts. It wasn't pretty. There was 6.5% drop in starts, falling well short of expectations. Although the sector has been having a good year, some analysts are still worried.

Shares in homebuilders Toll Brothers, PulteGroup and Lennar all opened more than 1% lower.

Prices for 10-year U.S. Treasuries fell, raising yields to 2.65% from Monday's 2.60%. Treasury prices and yields move in opposite directions

Oil prices dipped 17 cents to $106.73 U.S. a barrel.

Gold prices faded $7.20 at $1,268.30 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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