News Column

Faltering start to week

July 7, 2014

PMI figures released

Canadian stocks opened the week lower

The S&P/TSX composite index dipped 59.05 points Friday to open Monday's session at 15,155.91

The Canadian dollar gained 0.07 cents to 93.98 cents U.S.

A Federal Court judge on Friday invalidated the Conservative government's decision to limit health coverage for many people in the country making refugee claims, declaring the federal action to have been shocking and outrageous.

A Canadian National Railway train carrying crude oil derailed near Whitecourt, Alberta, early on Friday morning, the company said, but there were no injuries or fire and the crude cars were intact. CN shares sank 24 cents to $69.78.

Sherritt International Corp is among the six companies doing due diligence on BHP Billiton's Australian nickel unit Nickel West, which could be worth as much as A$800 million, the Australian Financial Review reported on Sunday. Sherritt shares took off four cents to $4.61.

Raymond James raised the price target on Suncor Energy to $55 from $51, with an outperform rating. Suncor shares backtracked five cents to $45.26.

On the economic front, Statistics Canada reported that municipalities issued building permits worth $6.9 billion in May, up 13.8% from April. This followed a 2.2% rise in the previous month.

The hike in May's permits resulted primarily from higher construction intentions for commercial buildings in Ontario and Manitoba, as well as multi-family dwellings in British Columbia.

Western University'sRichard Ivey School of Business said its Purchasing Managers Index by the end of June 2014 stood at 46.9. The corresponding Ivey PMI figure for May 2014 was 48.2, compared to 55.3 for June 2013, and 49.0 for June 2012

The PMI solicits whether business purchases last month were higher, the same, or lower than the previous month, and a figure above 50 shows an increase while below 50 shows a decrease.


The TSX Venture Exchange dropped 0.48 points to 1,037.28.

All but one of the 14 Toronto subgroups were negative to begin the day, with metals and mining sliding 1%, while energy and telecoms fell 0.7% each.

The lone gainer was information technology, up 0.6%.


Monday is throwing a bit of water on the embers of last week's fireworks.

The Dow let go of 59.32 points to open the week at 17.008.94

The S&P 500 eased back 5.77 points to 1,979.67, and the NASDAQ composite fell 11.98 points to 4,473.95.

Today's soft start comes after a record-setting close to last week that saw Dow finish above 17,000 for the first time ever.

Here are some stocks to watch throughout today's trading:

King Digital, the company behind the viral monster Candy Crush, has finally opened above its IPO price more than three months after it started trading.

Shares on that disastrous first day dropped more than 15%. The stock is around 3% higher in early trading and, most importantly, finally opened above the IPO price of $22.50.

Expedia's stock is slightly lower after it announced yesterday that it bought Australian travel website for $658 million U.S. Australia-listed shares in Wotif, which operates throughout Southeast Asia, rose 25% on the news.

Expedia is trading at an all-time high of around $82 U.S. Several analysts have recently upgraded the stocks price target to above $90 U.S.

Archer Daniels Midland, a big food and commodities company, purchased Wild Flavors for about $3.1 billion U.S. Wild makes the popular Capri Sun juices, among other things. ADM's stock was flat in early trading.

Prices for 10-year U.S. Treasuries gained ground, felling yields to 2.63% from Thursday's 2.65%. Treasury prices and yields move in opposite directions.

Oil prices fell 25 cents to $103.81 U.S. a barrel.

Gold prices skidded $5.20 to $1,315.40 U.S. an ounce.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Baystreet Stock Market Update (Canada)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters