News Column

TSX stumbles at start

August 15, 2014



Monster Beverage soars







Markets in Toronto faltered a bit at the outset Friday, as investors digested manufacturing and revised employment data.

The S&P/TSX composite index slid 26.80 points to open Friday at 15,264.38

The Canadian dollar added 0.28 cents to 92 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. Bear Creek gained 12 cents to $3.49.

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 backtracked 3.54 points to 996.22

All but three of the 14 Toronto subgroups were lower at the open, with gold dipping 1.7%, materials down 0.8%, and consumer discretionaries off 0.4%.

The three gainers were health-care, up 0.9%, while utilities and global base metals each inched up 0.2%.

ON WALLSTREET

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

The Dow Jones Industrials picked up 42.87 points to start off at 16,756.45

The S&P 500 added 6.53 points to 1,961.71. The NASDAQ composite improved 22.80 points to 4,475.80.

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.

Prices for 10-year U.S. Treasuries gained slightly, lowering yields to 2.39% from Thursday's 2.40%. Treasury prices and yields move in opposite directions.

Oil prices took on 40 cents to $95.98 U.S. a barrel.

Gold prices plummeted $20.70 at $1,295.10 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)


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