News Column

Flat finish on Thursday

June 19, 2014



BlackBerry vaults







Canada's main stock index inched up slightly on Thursday as a jump in BlackBerry after the smartphone maker reported stronger quarterly results was offset by weakness in the financial and energy sectors.

The S&P/TSX composite index was in the green 2.97 points to end Thursday at 15,112.22.

The Canadian dollar climbed 0.15 cents at 92.43 cents U.S.

BlackBerry shares shot up 9.3% to $9.84, after the company reported a smaller-than-expected quarterly loss as its cost-cutting campaign and other turnaround efforts looked like they were starting to pay off.

A leap in gold-mining shares, which followed also failed to overcome the negative sentiment.

Among gold-mining shares, Goldcorp added 4.8% to $29.65, and Barrick Gold gained 3.3% to $19.50.

Financials lost strength. Bank of Nova Scotia lost 0.6% to $70.78, and Toronto-Dominion Bank declined 0.2% to $54.72.


Shares of energy producers declined, with Suncor Energy shedding 0.8% to $45.94.

On the economic front, Statistics Canada told us that those Canadians drawing employment insurance numbered 517,100 in April, up 5,600, or 1.1%, from March.

The agency says the number of beneficiaries has been relatively unchanged for almost a year, following a long-term downward trend that began in the summer of 2009.

ON BAYSTREET

The TSX Venture Exchange gained 13.24 points to 1,022.06

All but four of the 14 Toronto subgroups were higher, with telecoms tumbling 0.9%, while utilities and real-estate were off 0.4% each.

The four gainers were led by gold, hiking 4.8%, materials up 2.9% and the metals and mining group up 1.1%.

ON WALLSTREET

After lazing about for most of the day, the S&P 500 did a sprinting finish in the final hour to end at a new record high.

The Dow Jones Industrials squeaked into positive territory by 14.84 points to 16,921.46

The S&P 500 gathered 2.50 points to 1,959.48, but the NASDAQ composite fell 3.51 points to 4,359.33

Stocks soared Wednesday after U.S. Federal Reserve Chair Janet Yellen signaled that interest rates will remain low. But the rally lost momentum Thursday as investors shifted their attention to the gold market.

Gold futures gained to levels they hadn't seen since April. Investors who believe Fed policy will undermine the dollar view gold as an alternative currency. In addition, gold prices often rise during times of political and military uncertainty.

Shares in American Apparel rose after the company announced overnight that it fired its controversial CEO, though it didn't say why. Its shares, which topped $15.00 U.S. as recently as 2007, now trade for less than $1.00 U.S. Sources told the New York Post that the move could set the stage for American Apparel to be sold.

Coach shares plunged over 9% after the maker of leather goods predicted a prolonged slump in sales and announced plans to close more stores.

Corinthian College, a for-profit education company, warned that it may need to shut down as the government cracks down on its attendance and grading practices. Shares of Corinthian, which operates 97 schools across the country, plunged more than 60%.

Facebook suffered an outage that prevented users posting to the social media site "for a brief period of time." The stock fell nearly 2%.

Elsewhere in the smartphone space, Amazon shares edged lower after the online retailer unveiled the Fire Phone, a high-end, 3-D smartphone. It is the first smartphone Amazon has produced on its own.

Drug store chain Rite Aid said net income fell in the latest quarter, sending its shares down 4%.

BlackBerry is back from the dead...again. The ailing smartphone pioneer reported a smaller-than-expected loss, sending its stock up more than 9.5%.

BlackBerry stock is up 24% so far this month, bouncing back from a rough patch during April and May.

Kroger shares jumped over 5% after the grocery store chain reported strong results and boosted its outlook. The stock hit an all-time high over $50 U.S.

Markit, which provides information on bonds and derivatives for traders and is considered a rival of sorts to Bloomberg, said late Wednesday that it had raised $1.3 billion U.S. in an initial public offering. The stock, which was priced at $24 U.S. a share, gained more than 11% after it began trading on the NASDAQ

Prices for 10-year U.S. Treasuries dropped slightly, raising yields to 2.62% from Wednesday's 2.61%. Treasury prices and yields move in opposite directions

Oil prices gained 67 cents to $106.64 U.S. a barrel.

Gold prices vaulted $45.30 at $1,318 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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