News Column

Ukraine, Gaza push TSX off record high

July 21, 2014



Gold stocks take pounding







Equities in Toronto retreated on Monday from record highs as a ratcheting-up of fighting in Ukraine and the Israel-Gaza conflict made investors hesitate, with energy and mining stocks among the heaviest weights.

The S&P/TSX composite index hesitated 45.07 points to greet noon at 15,221.50. The index hit a record high of 15,291.15 on Friday

The Canadian dollar slipped 0.10 cents to 93.06 cents U.S.

Cenovus Energy Inc slipped 1% to $33.08, while Canadian Natural Resources was down 0.6% at $48.04.


Encana Corp was off 0.8% at $23.05. Canada's largest natural gas producer may sell its Deep Panuke project by the end of the year, Bloomberg reported last week.


The energy and materials sectors, two of the TSX's largest, have both made significant gains so far this year.

Gold stocks sank, too, most notably, Barrick Gold, down 37 cents, or 1.7%, to $20.25, and Goldcorp dipping 42 cents, or 1.4%, to $29.57.

Clashes broke out in the rebel-held city of Donetsk in eastern Ukraine as investigators sought access to the bodies of the victims of the Malaysian airliner shot down last week.


Meanwhile, Israeli jets, tanks and artillery pounded Gaza and Palestinian militants fired rockets at Israel as the U.N. Security Council's calls for a truce were ignored.

ON BAYSTREET

The TSX Venture Exchange fell 1.06 points to 1,011.18.

All but two of the 14 Toronto subgroups were lower at noon, as gold moved downward 1.1%, materials shed 0.9%, and consumer discretionary stocks, dimmed 0.6%.

The two gainers were health-care, up 0.7%, and the metals and mining group, up 0.03%.

ON WALLSTREET

Stocks are down Monday in the U.S. and around the world, although the damage in the U.S. abetted a bit after President Obama's latest remarks.

The Dow Jones Industrials skidded 73.15 points though off its lows of the morning -- to 17,027.03.

The S&P 500 fell 8.42 points to 1,969.80, and the NASDAQ composite demurred 18.40 points to 4,413.75

Tobacco stocks are wilting in the face of a potential $23.6-billion U.S. jury award to the Florida widow of a man who died from lung cancer.

Reynolds American fell 1% in early trading, and Lorillard, which Reynolds agreed to buy last week, is down 1.5%. Philip Morris and Altria Group were each down around 0.6%.

Fast food giants McDonald's and Yum! Brands, which runs KFC, Taco Bell and Pizza Hut, are dealing with a tainted meat scandal in China.

The pair have cut ties to a meat supplier that supposedly processed tainted beef and chicken. Yum shares are down 3.3% and McDonald's stock is off 1%.

Investor darling GoPro, which debuted about a month ago and has been climbing ever since, got an initial "overweight" rating from JP Morgan Monday. The stock is up 3% so far today, and almost 80% higher than its IPO price.

The Wall Street Journal reported that hedge fund Elliott Management has taken a 2% stake in data storage company EMC Corp. The paper says Elliott wants EMC to spin off its popular VMware cloud storage business. EMC stock is the best performing stock in the S&P 500 Monday, up more than 3.6%.

Obama spoke on both crises in a statement, calling for a ceasefire in the deadly Gaza violence. On Ukraine, he said Russia was on watch as investigators seek to get to the bottom of what happened to Malaysia Airlines flight 17.

Prices for 10-year U.S. Treasuries gained bit of ground, lowering yields to 2.46% from Friday's 2.48%. Treasury prices and yields move in opposite directions.

Oil prices gained 98 cents to $104.11 U.S. a barrel.

Gold prices added three dollars to $1,312.30 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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