News Column

Slight drop at open

July 28, 2014



Bombardier, WestJet in focus







Canadian stocks started the week little changed, as fresh rounds of European sanctions on Russia weighed on investor sentiment.

The S&P/TSX composite index doffed 23.09 points, to open Monday at 15,431.95

The Canadian dollar recovered 0.06 cents at 92.49 cents U.S.

The second-quarter earnings season picks up momentum this week with data coming in primarily from the gold mining and energy sectors. Those two are the best performing sectors on the TSX year to date with energy up 19% while the gold sector is up 28%, but that's after being cut in half last year.

Outside those sectors, traders will consider reports from transportation giant Bombardier on Thursday.

The stock is close to its 52-week low of $3.44 and investors will be looking to the report and analyst call for indications on the development of the company's crucial CSeries airliner, which has been beset by a series of delays. Bombardier shares nicked up two cents to $3.67 early Monday morning.

Other key reports include WestJet airlines on Tuesday and TransCanada Pipelines on Thursday. WestJet lifted 15 cents to $27.29, while TransCanada sank 33 cents to $55.53.

The data calendar for Canada is light this week with only one major report. Statistics Canada posts May gross domestic product figures on Thursday. Economists look for a 0.3% gain for the month.

ON BAYSTREET

The TSX Venture Exchange gained 0.70 points to 1,018.44.

Eight of the 14 Toronto subgroups were up in the first hour, most notably the metals and mining and utilities group, each up 0.4%, while global base metals inched forward 0.2%.

The half-dozen laggards were weighed most by energy and health-care issues, each down 0.5%, while consumer staples faded 0.4%.

ON WALLSTREET

Markets started the week with a whimper, continuing last week's uninspired performance.

The Dow Jones Industrials drooped 58.92 points to begin Monday at 16,901.65.

The S&P 500 slipped 7.41 points to 1,970.93. The NASDAQ composite fell 19.21 points to 4,430.35

Zillow merges the two biggest names in online housing, and some media reported last week that some real estate agents were nervous that the sites' combined depth of local housing data could make in-person brokers irrelevant. Shares of Trulia surged 15% in pre-market trading. Zillow was halted around the announcement.

Family Dollar shares surged more than 25% on news that it's being bought by another discount retailer, Dollar Tree, for $8.5 billion U.S. Dollar Tree's stock climbed over 11% pre-market.

Tyson Foods reported earnings before the bell. The stock was up nearly 4% on plans to sell its Mexican and Brazilian poultry units for $575 million. Herbalife will report after the close.

McDonald's continues to be embroiled in a rotten meat scandal in China. Shares of the fast food chain have dropped 3.3% in the week since a longtime McDonald's meat supplier was accused of processing expired meat.

Keep an eye on another American fast food chain, El Pollo Loco, to see if it continues to fly high -- shares surged more than 60% in its first day of trading Friday.

Prices for 10-year U.S. Treasuries lost ground, raising yields to 2.48% from Friday's 2.47%. Treasury prices and yields move in opposite directions.

Oil prices decreased 87 cents to $101.22 U.S. a barrel.

Gold prices took on one dollar to $1,304.300 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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