News Column

Stocks up on earnings news

July 24, 2014



Teck, BlackBerry up







The Toronto stock market was slightly higher late morning Thursday amid encouraging Chinese manufacturing data and strong earnings reports.

The S&P/TSX composite index regained 15.19 points to greet noon at 15,409.57

The Canadian dollar was down 0.14 cents at 93.08cents U.S.

Teck Resources Limited reports a second-quarter net profit of $80 million, or 14 cents share, compared with $143 million, or 25 cents per share, a year ago.

Adjusted profit, excluding items, was $72 million, or 13 cents per share, a penny better than estimates and its shares ran up 83 cents to $26.45.

However, one big reason for the improvement was a cost cutting program launched two years ago that Teck said has exceeded its initial goals.

Loblaw Companies posted a net quarterly loss of $456 million, or $1.13 per share, with results hit by costs involving the acquisition of Shoppers Drug Mart. Adjusted earnings of 75 cents a share beat estimates by eight cents a share and its shares advanced 60 cents to $51.94.

Rogers Communications Inc. reports a second-quarter net income of $405 million, or 76 cents per diluted share, down 24% from $532 million, or 93 cents, in the same quarter of 2013.

Rogers shares gained 85 cents to $43.25 as its adjusted net income was $432 million, or 84 cents, which met expectations.

The base metals sector advanced, as the Chinese manufacturing data sent September copper up six cents to $3.27 U.S. a pound.

The tech sector gained while BlackBerry gained 42 cents to $10.96 after the Financial Times reported the company is in talks with rival technology groups about partnerships to compete with the newly forged alliance between Apple and IBM.

On the economic slate, Statistics Canada reported that those receiving regular employment insurance benefits fell by 12,100 or 2.3%. The total number of beneficiaries for the month was 504,100.

ON BAYSTREET

The TSX Venture Exchange gave back 2.23 points to 1,010.

All but three of the 14 Toronto subgroups were higher, led by metals and mining, up 1.1%, information technology, up 1%, and consumer staples, up 0.9%.

The three laggards were gold, down 1.5%, materials, off 0.4%, and industrials, sliding 0.2%.

ON WALLSTREET

The S&P 500 rose to yet another new high Thursday and is now within range of 2,000.

The Dow Jones Industrials inched up 6.51 points to 17,093.14.

The S&P 500 gained 2.93 points to 1,989.94. The NASDAQ composite moved into the green 6.17 points to 4,479.87.

Overall, corporate earnings for the second quarter have been strong. Of the 148 members of the S&P 500 that have reported earnings as of Wednesday, 102 have been better than expected, according to S&P Capital IQ.

Facebook shares soared 7% to a record after posting earnings that blew away expectations.

Qualcomm shares plunged due to worries over the company's business in China. Qualcomm is being investigated under China's anti-monopoly law. The tech firm said in its quarterly report that some clients in the country are "not fully complying with their contractual obligations."

AT&T slipped after reporting earnings that missed expectations by a penny.

Amazon and Pandora will report after the close, likewise Starbucks and Visa

Caterpillar shares fell after the construction equipment maker lowered the mid-point of its 2014 sales outlook, citing weakness in China. 3M shares edged higher after the company reported earnings that met analysts' expectations.

General Motors expects to pay between $400 million and $600 million U.S. to compensation victims of its faulty ignition switches, which have been linked to at least 13 deaths. As a result, GM will take a $1.2-billion U.S. pre-tax charge. The report comes one day after GM recalled another 718,000 vehicles.

Rival automaker Ford reported a quarterly pre-tax profit of $2.6 billion U.S, including its first profit in Europe in three years. Shares rose 1%.

The number of Americans filing first-time claims for unemployment benefits fell to a more than eight-year low, according to the U.S. Labor Department's weekly report.

China's factories are motoring again after a dismal start to the year, with a preliminary estimate of manufacturing activity hitting an 18-month high in July.

Prices for 10-year U.S. Treasuries fell, raising yields to 2.51% from Wednesday's 2.46%. Treasury prices and yields move in opposite directions.

Oil prices docked 49 cents to $102.63 U.S. a barrel.

Gold prices dipped $14.60 to $1,290.40 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)


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