News Column

Flat open for TSX

July 15, 2014



Resale home prices in focus








Stocks in Canada's biggest centre got off to a murky start Tuesday, dwelling in the same kind of suspense their American cousin were in ahead of expected remarks from U.S. Federal Reserve Chief Janet Yellen.

The S&P/TSX composite index fell 8.84 points to begin Tuesday at 15,162.39

The Canadian dollar was lower by 0.19 cents to 93.17 cents U.S.

British carrier Flybe said it had signed a services agreement with Bombardier Inc, making the Canadian planemaker's Q400 the 'aircraft of choice' for Flybe's U.K.-branded business. Bombardier took on two cents to $3.85.

CIBC raised the price target on Sirius XM Canada to $9.50 from $9.00. Sirius shares gained a dime to $7.38.

Canaccord Genuity raised the rating on Intertain Group to buy from speculative buy, price target to $8. Intertain shares doffed a nickel to $6.65.

Canadian resale home prices rose sharply in June, but the pace of 12-month price inflation slowed, the Teranet-National Bank Composite House Price Index showed on Monday.

ON BAYSTREET

The TSX Venture Exchange fell 3.28 points to 1,016.94.

All but three of the 14 Toronto subgroups were higher, led by gold, up 1.1%, materials, gaining 0.7%, and consumer staples, up 0.5%.

The three laggards were energy, down 1%, telecoms, off 0.7%, and metals and mining, slipping 0.1%.

ON WALLSTREET

The Dow Jones Industrials rose to a new high early Tuesday, but then fell back after the Federal Reserve warned about social media stocks.

The Dow moved forward 16.76 points to 17,072.18

The S&P 500 slipped 0.06 points to 1,977.04, and the NASDAQ composite slid 12.31 points to 4,428.11.

Goldman Sachs and JPMorgan Chase were the top gainers on the Dow after both reported quarterly earnings that beat analysts' expectations.

The results came one day after Citigroup reported earnings that beat expectations and announced a $7-billion U.S. settlement with the federal government over mortgages it sold in the run-up to the financial crisis.

Johnson & Johnson also reported earnings that beat expectations. The maker of consumer health care products boosted its outlook for full-year earnings as well. But the stock was down more than 1%, making it the biggest drag on the Dow.

Reynolds American and Lorillard announced plans to merge in a cash-and-stock transaction valued at $27.4 billion U.S. Under the terms of the deal, Reynolds will sell certain brands and assets to Imperial Tobacco, while British Tobacco will maintain its stake in Reynolds.

Shares of Reynolds and Lorillard had rallied ahead of the widely-anticipated merger, but both stocks were down sharply after the news came out.

Yellen is giving her semiannual monetary policy report to the Senate Banking Committee. Economic data has been improving, raising questions about whether the Fed will begin to moderate its supportive tone.

She opened her remarks reiterating the Fed's intention to keep interest rates at historic lows for awhile longer.

But investors were spooked by the Fed's monetary policy report today that warned about social media stocks.

In economic news, the government said retail sales increased 0.2% in June from the month before. That was a smaller gain than expected, but economist said the report showed strength below the surface.

Prices for 10-year U.S. Treasuries inched up, dropping yields to 2.54% from Monday's 2.55%. Treasury prices and yields move in opposite directions.

Oil prices chucked $1.30 to $99.61 U.S. a barrel.

Gold prices gained $1.30 to $1,308 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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