News Column

Gold stocks weigh TSX

August 21, 2014



Financials prove stronger







The Toronto stock market chalked up a minor loss Thursday as data showed an improving climate for U.S. manufacturers and worsening conditions in China and the euro-zone.

The S&P/TSX composite index were still negative 27.09 points to greet noon at 15,534.86

The Canadian dollar was up 0.16 cents at 91.32 cents U.S.

Financials advanced a day before Royal Bank kicks off a series of earnings reports from the big banks. Royal shares gained 13 cents to $81.73.

The gold sector declined, as Goldcorp fell $1.21, or 3.9%, to $29.33.

The metals and mining segment fell with September copper was unchanged at $3.17 U.S. a pound. Teck Resources dipped 42 cents, or 1.7%, to $25.08.

The energy sector edged lower, as Suncor docked two cents to $43.64, though Imperial Oil picked up 24 cents to $56.45.

Speaking of things economic, Statistics Canada reported this morning that the number of people receiving regular Employment Insurance benefits was little changed in June at 501,900, this, following a slight decline in May.

ON BAYSTREET

The TSX Venture Exchange dipped 1.2 points to 995.50

Nine of the 14 Toronto subgroups were negative by noon hour ET, as gold slumped 2.8%, materials were down 2%, and metals and mining were off 1.5%

The five gainers were led by financials, up 0.4%, consumer staples, up 0.3%, and consumer discretionaries, ahead 0.1%.

ON WALLSTREET

A stock market bounce-back is in full effect.

The Dow Jones Industrials moved up 69.58 points to stop for lunch Thursday at 17,048.71

The S&P 500 moved higher 4.23 points to 1,990.74. If the gains hold through the end of the day, it would be the 28th record close this year for the popular index of U.S. stocks.

The NASDAQ dipped 3.34 points to 4,523.14

Strong corporate earnings and U.S. economic data are soothing concerns about the health of America's businesses and overall economy. Hewlett-Packard beat expectations in its quarterly report last night.

Family Dollar Stores rejected Dollar General's $8.95-billion U.S. acquisition offer, citing antitrust concerns, and reaffirmed its support for a buyout offer from Dollar Tree.

Family Dollar shares shed 0.2% to $79.69 U.S. and Dollar General dipped 0.3% to $63.58 U.S. Dollar Tree also reported quarterly results and fell 1.4% to $54.25 U.S.

Sears Holdings tumbled 7.2% to $33.35 after the owner of Sears department stores and the K-Mart discount chain reported a ninth straight quarterly loss and said it might close more stores than planned this year.

In economic news, initial jobless claims fell by 14,000 to 298,000 last week, basically in line with the 300,000 claims expected by economists.

Three other economic reports were due later, the most closely watched of which may be existing-home sales for July, which economists expect to hold steady. Also out at that time: the Philadelphia Fed manufacturing survey for August and leading indicators for July.

With time to mull it over, investors appeared to further shrug off the Fed minutes released Wednesday that showed some officials arguing the groundwork should be laid for raising interest rates sooner than expected. A Thursday report showing a three-month low for Chinese factory data was also brushed aside.

Prices for 10-year U.S. Treasuries were lower, raising yields to 2.42% from Wednesday's 2.41%. Treasury prices and yields move in opposite directions.

Oil prices inched up 62 cents to $94.07 U.S. a barrel.

Gold prices were lower by $16.90, to $1,278.30 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)


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