News Column

Toronto propelled higher by banks

June 17, 2014



Fed meeting on radar







Equity markets in Toronto rose on Tuesday as a gain in financial shares helped overcome worries about the volatile situation in Iraq and nervousness about the outcome of a Federal Reserve policy meeting.

The S&P/TSX composite index gained 15.46 points to close at 15,055.89.

The Canadian dollar was down 0.16 at 92.05 cents U.S.

Gold stocks led the parade Tuesday, as Goldcorp gained 0.9% to $27.24, and Barrick Gold tacked 0.8% to $18.52.

Health-care issues were also in favour, as Valeant Pharmaceuticals jumped 1.5% to $1.88.

Financials climbed as Royal Bank added 0.1% to $75.21, and Toronto Dominion Bank advanced 0.5% to $54.59.


Shares of energy producers were down, reflecting weakness in the price of U.S. crude oil. Suncor Energy lost 0.9% to $46.32, and Canadian Natural Resources slipped 0.7% to $47.36.

ON BAYSTREET

The TSX Venture Exchange moved forward 7.36 points to 1,006.05

ON WALLSTREET

Tech stocks rode to the rescue of equity markets Tuesday.

The Dow Jones Industrials gained 27.48 points to 16,808.49

The S&P 500 nicked up 4.21 points to 1,941.99, and the NASDAQ composite regained a gain of 16.12 points to 4,337.23, on the back of strong gains from Tesla and Netflix, among others.

New Jersey's lawmakers passed a bill to allow electric car manufacturer Tesla to again be able to sell its electric cars in that state directly to customers. A recent decision by the state's Motor Vehicle Commission barred the practice.

The company's shares were more than 4% higher, building on momentum from yesterday's gains after the company said it would share its patent information. Tesla stock is up over 55% for the year.

In a separate development, his green energy company SolarCity announced that it acquired solar panel manufacturer Silevo for $200 million U.S. in stock, plus as much as $150 million U.S. more should the company hit certain output milestones. SolarCity's shares have popped nearly 17%.

Charles Schwab, TD Ameritrade and E*Trade Financial shares are up after a Senate hearing where industry participants discussed high-frequency trading.

Apparently, the market seems to think the online brokerages came out okay. Charles Schwab stock was up more than 6% in afternoon trading, TD Ameritrade was up more than 5.5% and E*Trade shares were doing even better, more than 8% higher.

Netflix stock had a terrific Tuesday. Shares were up more than 3% after an upgrade by Morgan Stanley, which now recommends overweighting the video company. Shares were just $10 U.S. shy of the record close they saw back in March.

Meanwhile, Amazon will reportedly give its AT&T exclusive access to its new smartphone. Amazon is down slightly, while AT&T is up modestly.

Tuesday was the first day of the Federal Reserve's big meeting, and investors hotly anticipated the latest inflation data from the U.S. 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 policy changes. Bond yields for treasury notes maturing in one year or less were down, with longer-term treasury yields rising.

Prices for 10-year U.S. Treasuries fell hard, raising yields to 2.66% from Monday's 2.60%. Treasury prices and yields move in opposite directions

Oil prices retreated 69 cents to $106.21 U.S. a barrel.

Gold prices faded $4.30 at $1,271 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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