News Column

TSX gains with bank shares

July 14, 2014



Energy leads charge







Equity markets in Toronto were in the green midday Monday, as strength in the financial and energy sectors helped overcome a drop in gold-mining shares after the price of bullion fell sharply.

The S&P/TSX composite index gained 31.06 points to greet noon at 15,156.56

The Canadian dollar was higher by 0.16 cents to 93.30 cents U.S.

The Toronto market's rebound followed a decline in the previous week over concerns about the prospects of corporate earnings. It is now up about 11% this year.


The strength in equity markets and a burst of profit-taking fueled a 2.2% drop in gold prices, which have been rallying in recent weeks. Shares of gold producers gave back strength leading up to noon ET.

Financials advanced as Bank of Montreal added 0.6% to $80.32, and Royal Bank of Canada climbed 0.5% to $78.75.


Shares of energy producers gained, with the price of Brent crude oil rising. Suncor Energy jumped 1.3% to $44.82, and Canadian Natural Resources rose 0.9% to $48.02.


Among gold-mining stocks, Goldcorp shed 2.7% to $29.71, and Barrick Gold slipped 1.8% to $20.33.


In corporate news, Bombardier's CSeries aircraft program received a boost as the company announced two tentative orders for a total of up to 24 jets worth nearly $1.6 billion. The stock was up 2.8% at $3.87.

ON BAYSTREET

The TSX Venture Exchange fell 5.43 points to 1,017.50.

Eight of the 14 Toronto subgroups were higher, with energy stronger by 0.9%, while consumer discretionaries and financials were up 0.5% each.

The half-dozen laggards were weighed mostly by gold, down 2.6%, materials, off 1.5%, and metals and mining, lower by 0.6%.

ON WALLSTREET

Stocks have shaken off last week's Portuguese bank scare. The Dow is back above 17,000 and is once again at a record high.

The Dow Jones Industrials zoomed 131.11 points to 17,074.92, having hit a new peak of 17,085 at earlier in the session.

The S&P 500 hiked 11.22 points to 1,978.79, and the NASDAQ composite gained 30.98 points to 4,446.47.

The rally comes as Goldman Sachs released an upgraded target for the S&P 500. Analysts there now think the broad index will hit 2,050 by year's-end instead of 1,900. The S&P 500 has been hovering around 1,980 all day.

Here are some other things to watch in today's trading:

Citigroup reported earnings that beat expectations despite a $7-billion U.S. settlement with the federal government over mortgages it sold during the financial crisis. The stock is up about 3.4%.

Shares of the other big banks -- JPMorgan Chase, Bank of America, Goldman Sachs and Morgan Stanley -- were higher in early trading. These four will report their second-quarter earnings later this week. Wells Fargo was slightly lower even though it reported on Friday earnings and revenue largely in line with Wall Street expectations.

Several well-known tech stocks were up big Monday. Netflix rose more than 3% while Amazon gained more than 2%. Advertising giant Omnicom's Annalect subsidiary released a research report that says binge watchers are more open to ads than marketers previously thought, which may be good news for Netflix and Amazon's Prime service.

In social media news, Facebook and Twitter both said that the World Cup smashed activity records: Facebook said the Germany vs. Argentina championship game's 281 million interactions made it the most talked-about sports event in the site's history.

Twitter said 618,725 tweets were getting sent every minute at the end of the match, a record for an event.

Facebook and Twitter shares are both up around 2%.

Apple, fresh off an upgrade from Barclays, is up about 1.5%.

Pharmaceutical company AbbVie presented a fifth, and seemingly final, offer to Irish drug maker Shire in a bid to move lower its tax liability. The magic number that charmed Shire's board into recommending shareholder approval is about $54 billion U.S., 35% higher than the original offer. AbbVie's shares are down slightly. Shire's American shares are about 1.7% higher.

Prices for 10-year U.S. Treasuries sagged, upping yields to 2.54% from Friday's 2.52%. Treasury prices and yields move in opposite directions.

Oil prices fell six cents to $100.77 U.S. a barrel.

Gold prices tailed off $30.60 to $1,306.80 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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