News Column

Gold, donuts power TSX

August 26, 2014



Whitecap also in focus







Stocks in Toronto opened higher Tuesday, as the buzz from the Tim Hortons-Burger King slowly died down, and as the market absorbed earnings news from two of the major banks.

The S&P/TSX composite index was up 63.19 points to close at 15,598.74

The Canadian dollar was down 0.15 cents at 91.04 cents U.S.

Shares of Tim Hortons extended their rally after the coffee chain said it planned to merge with Burger King Worldwide Inc. Tim shares rocketed $7.07, or 8.6%, to $89.10.

Bank of Nova Scotia reported a higher quarterly profit as strength at its wealth management and insurance businesses boosted its bottom line and allowed Canada's number-three lender to raise its dividend. Scotiabank shares descended $1.50, or 2%, to $72.69.

Bank of Montreal reported a stronger third-quarter profit, helped by gains at its Canadian and U.S. personal and commercial banking units and higher revenue at its capital markets arm. BMO shares gained 58 cents to $82.39.

Barclays raised price target on Whitecap Resources to $20.00 from $18.00. Whitecap took on 37 cents, or 2%, to $18.59.

ON BAYSTREET

The TSX Venture Exchange gained 2.53 points to 1,010.77

All but one of the 14 Toronto subgroups were higher, with gold up 1%, while energy and consumer discretionary issues each surged 0.9%.

Only financials missed the party, slumping 0.3%.

ON WALLSTREET

U.S. stocks notched modest gains in early trade Tuesday, with the S&P 500 again pushing above the milestone level of 2,000.

The Dow Jones Industrials chugged along 43.33 points to begin Tuesday at 17,120.60

The S&P 500 gained 4.61 points to 2,002.53. The NASDAQ added 6.78 points to 4,564.13

The benchmark hit an intraday record after a better-than-expected reading on consumer confidence, and investors took a mixed report on durable-goods orders in stride.

Best Buy Co. shares fell nearly 6% amid a sluggish outlook. The struggling retailer is the day's worst performer in the S&P 500.

Burger King Worldwide Inc. and Canada-based Tim Hortons Inc. confirmed Tuesday that they plan to combine to create a new company in an $11-billion U.S. deal. They are getting financing help from Warren Buffett's Berkshire Hathaway Inc. Burger King shares rose 0.8%, while Tim Hortons' U.S.-listed shares gained 9%.

Shares of Kite Pharma Inc. rose 17.5% after the biotech reported the majority of patients responded positively to its cancer-drug candidate.

Economically speaking, orders for U.S. durable goods skyrocketed a record 22.6% in July because of a surge in contracts for Boeing Co. aircraft, but bookings actually fell for most other industries, the Commerce Department reported.

Meanwhile, an August reading on consumer confidence came in at 92.4, above forecasts for 88.5, and U.S. home prices rose 1% in June.

Prices for 10-year U.S. Treasuries moved up, lowering yields to 2.38% from Monday's 2.39%. Treasury prices and yields move in opposite directions.

Oil prices were up 97 cents to $94.34 U.S. a barrel.

Gold prices picked up $8.50 to $1,287.40 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)


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