News Column

TSX down on day

August 27, 2014



National Bank in focus







The Toronto stock market chalked up a small loss Wednesday as traders continued to digest earnings reports from the Canadian banking sector, in this case a solid report from National Bank

The S&P/TSX composite index was down 16.56 points to close Wednesday at 15,602.65.

The Canadian dollar was up 0.80 cents at 92.11 cents U.S.

National Bank posted net earnings of $441 million, up 10% from a year ago. Adjusted earnings came in at $1.20 a share, nine cents ahead of estimates.

Total revenues for the country's sixth largest-lender rose 10% to $1.42 billion and its shares gained $1.51, or 3.1%, to $50.91.

National Bank's earnings followed reports from Royal Bank, which on Friday posted a record quarterly profit that beat expectations and a dividend increase. Bank of Montreal and Scotiabank reported mixed results Tuesday with expectations elevated for a sector that is up 12% year to date.

CIBC and TD Bank report on Thursday.

In other corporate news, uranium miner Cameco said Wednesday it's preparing to stop work at its McArthur River mine and Key Lake mill operations in northern Saskatchewan due to a labour dispute.

It said the company and the roughly 535 unionized workers represented by the United Steelworkers are set to begin a strike-lockout at 12:01 a.m. on Aug. 30.

Cameco said a labour disruption is not expected to affect its 2014 uranium delivery commitments. Its shares fell 77 cents, or 3.5%, to $21.14.

On the TSX, the base metals sector was down as December copper was down one cent at $3.20 U.S. a pound.

The gold sector was down while Goldcorp backed up 26 cents to $29.87.

The energy sector shed some of its strength while Imperial Oil retreated 21 cents in price to $57.33

ON BAYSTREET

The TSX Venture Exchange gained 3.98 points to 1,019.34.

All but four of the 14 Toronto subgroups were lower, as materials and gold each stepped back 1%, and metals and mining skidded 0.8%.

The four gainers were led by financials, which picked up 0.4%, while telecoms and consumer staples were each ahead 0.2%.

ON WALLSTREET

The U.S. stock market finished fairly flat on Wednesday, with the S&P 500 staying around 2,000 a day after it closed over that milestone for the first time.

The Dow Jones Industrials tacked on 15.31 points to 17,122.01.

The S&P 500 poked up 0.10 points to 2,000.12. The NASDAQ shed 1.02 points to 4,569.62.

Best Buy Co. was the biggest winner in the S&P 500, rising 6.3% and recouping most of Tuesday's 6.9% loss. Analysts at B. Riley & Co. said the retailer's seemingly gloomy holiday guidance is actually better than it appears, according to a Dow Jones Newswires report.

Tiffany & Co. was another notable winner in the S&P 500 after the jeweler lifted its full-year earnings forecast and reported a 16% rise in second-quarter profit. Tiffany closed up 1%.

Apple Inc. finished up 1.2% at another all-time closing high. The tech giant is developing a new iPad with a larger screen, a Bloomberg report said, while tech news site Re/Code said Apple will unveil a new wearable device at its Sept. 9 event where it's expected to launch two new iPhone models.

Prices for 10-year U.S. Treasuries sagged, lowering yields to 2.36% from Tuesday's 2.39%. Treasury prices and yields move in opposite directions.

Oil prices were down seven cents to $93.79 U.S. a barrel.

Gold prices removed $1.50 to $1,283.70 U.S. an ounce.


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Source: Baystreet Stock Market Update (Canada)


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