News Column

Markets Edge Higher

August 15, 2014



manufacturing sales up 0.6% in June





WEEKLY MARKET WRAP UP



Markets in Toronto faltered a bit at the outset however turned direction to close higher Friday, as investors digested manufacturing and revised employment data.

The S&P/TSX composite index rose 13.06 points to close Friday at 15,304.24.

The Canadian dollar added 0.0009 cents to 91.82 cents U.S.

U.S. securities regulators are looking at the hostile takeover bid made by billionaire investor William Ackman and Valeant Pharmaceuticals for Botox maker Allergan Inc, a person familiar with the matter said on Thursday. Valeant shares gained $2.50, or 2.1%, to $123.45.

The Peruvian government said on Thursday it hopes to ease local opposition to Canadian miner Bear Creek's stalled Santa Ana silver mine and avoid a costly legal battle with the company.

Tim Hortons, which has offered only one coffee blend in its 50-year history, hopes to lure new coffee drinkers and fend off rivals such as Starbucks Corp and McDonald's Corp with the launch throughout North America of its new dark roast blend. Tim Hortons shares stepped back 30 cents to $67.82.

On the economic beat, Statistics Canada revised last week's employment report, saying that employment rose by 42,000 in July, the result of a 60,000-unit increase in part-time work. The unemployment rate declined 0.1 percentage points to 7.0%.

What's more, manufacturing sales rose 0.6% in June to $52.0 billion, the fifth gain in six months.

ON BAYSTREET

The TSX Venture Exchange inched lower by 0.32 points to 995.90

All but 7 of the 14 Toronto subgroups were lower, with tech dipping 1.05%, gold down 0.93%, and consumer discretionaries off 0.37%.

On the upside, tech was ahead 1.17%, energy stocks rose 1.01 and mining inched up 0.63%.

ON WALLSTREET

Stocks ended mixed Friday, on news of a clash between Ukrainian and Russian military units on Ukraine soil. Major indexes posted weekly gains despite the late flight out of riskier assets into Treasury's.

U.S. stocks opened higher on Friday, putting the main benchmarks on track to record a second straight week of gains.

The S&P 500 was down 0.01% to 1,955.08, closing the week more than 1% higher. The index is now down about just 1.8% from its July 24 all-time intraday high after last Thursday's relatively shallow pullback of 3.9%. The Dow Jones Industrial Average was down 0.3% to 16,662.91, adding 0.66% for the week. The Nasdaq ticked up 0.27% to 4,464.93 to gain over 2% for the week.

Monster Beverage shares leapt on Coca-Cola's move to acquire a 17% ownership stake in the energy drink company, as part of a long-term partnership deal. Coke will make a $2.15-billion U.S. cash payment and transfer its global energy drink business to Monster.

Achillion Pharmaceuticals rallied in heavy volume following positive results from a clinical trial related to sovaprevir, the company's experimental hepatitis C treatment.

SeaWorld Entertainment shares rallied 3.3% after the company confirmed that it will upgrade its killer whale tanks, succumbing to public pressure from animal activists.

Applied Materials gained, after the chip-making equipment provider's quarterly sales and earnings report topped Wall Street expectations.

In economic news, U.S. producer prices inched up in July, a second consecutive month of gains, led by services such as transportation and warehousing, the government reported Friday.

That is one of several recent inflation gauges that show price growth isn't running too hot for the Fed.

Separately, thanks to a sizable jump in auto production, industrial production rose in July, marking the sixth month of gains, the Federal Reserve said Friday.

The 10-year Treasury note yield fell more than 5 basis points to less than 2.35% as investors sought safety by buying Treasury's. Yields fall as Treasury prices decline.

Oil prices fell to $95.58 U.S. a barrel.

Gold prices plummeted $9.02 at $1,304.48 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)


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