News Column

Small gains at open

June 24, 2014

Allergan-Valeant battle continues

Equities in Toronto began Tuesday up slightly, even in the absence of any major economic catalyst

The S&P/TSX composite index nicked up 8.65 points at Tuesday's open to 15,114.28. The index has climbed 11% since the year began.

The Canadian dollar dropped 0.02 cents at 93.16 cents U.S.

Federal Finance Minister Joe Oliver warned on Monday that investors could be improperly pricing risk as they hunt for better investment returns, and said policymakers should keep the issue under close review.

U.S. officials ordered BNSF Railway and Canadian Pacific Railway to report by Friday their plans to clear a backlog of grain cars after months of service delays blamed on harsh winter weather and high freight demand. CP shares backtracked $2.50, or 1.3%, to $193.85.

Allergan Inc on Monday advised investors not to sell their shares to Valeant Pharmaceuticals International which launched a hostile takeover offer for the California-based Botox maker last week, saying it was "grossly inadequate." Valeant shares added eight cents to $130.14.

Canaccord Genuity cut the rating on Augusta Resource to hold from speculative buy. Augusta shares deducted two cents to $3.42.


The TSX Venture Exchange dropped 2.39 points to 1,023.98

Among the 14 Toronto subgroups, losers outnumbered gainers eight to six, as information technology stocks slid 0.6%, global base metals faded 0.5%, and health-care doffed 0.3%.

The half-dozen gainers were led by gold, up 0.4%, materials, advancing 0.3%, and the metals and mining group, better by 0.2%.


Investors in the United States are taking another breather early Tuesday as they contemplate their next move.

The Dow Jones Industrials took on 9.66 points to begin the day at 16,946.92

The S&P 500 nicked up 1.33 points to 1,963.64, and the NASDAQ composite gained 14.06 points to 4,382.74

Stocks soared to all-time highs last week as investors remain confident that global monetary policy will continue to support the market. But the tone has been cautious so far this week as investors look for the next catalyst to move the market one way or another.

Walgreens said earnings rose nearly 16% in the first quarter, but the results missed analysts' expectations. Shares fell more than 1%.

Shares in Avago Technologies were up 2.5% after the Singapore-based chipmaker announced a $309-million U.S. cash acquisition of PLX Technology.

Home prices throughout the United States continued to rise in April. The S&P/Case-Shiller index measuring the value of residential real estate in 20 U.S. cities increased 1.1%.

Still to come, the U.S. government will post May data on new home sales and the Conference Board will release its monthly consumer confidence index.

Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.60% from Monday's 2.62%. Treasury prices and yields move in opposite directions.

Oil prices fell 23 cents to $105.94 U.S. a barrel.

Gold prices gained four dollars at $1,322.40 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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