News Column

Toronto slips with banks

August 28, 2014

Metals weak

Canada's main stock index declined on Thursday as shares of Toronto Dominion Bank and Canadian Imperial Bank of Commerce fell after the two lenders reported quarterly results.

The S&P/TSX composite index was down 46.75 points to pause for lunch at 15,555.90

The Canadian dollar was up 0.08 cents at 92.12 cents U.S.

Bank shares had a strong run-up before their earnings and portfolio managers said that expectations may have gotten ahead of themselves.

TD shares lost 0.6%, to $57.45, after the country's second-biggest bank reported a stronger-than-expected quarterly profit, boosted by gains at its core Canadian retail business.

CIBC's stock shed 2.7% to $102.65 after the lender reported a higher third-quarter profit, helped by strong gains at its wealth management and investment dealer divisions.

Shares of energy producers were down, with Suncor Energy falling 0.3% to $44.08 and Canadian Natural Resources declining 0.2% to $46.67.


The TSX Venture Exchange gained one point to 1,020.34.

Nine of the 14 Toronto subgroups were lower, as global base metals tanked 1.7%, their cousins among metals and mining drooped 1.4%, and financials were down 0.8%.

The four gainers were led by gold, up 0.8%, consumer staples, ahead 0.5%, and utilities, gaining 0.4%. Telecoms were flat at noon.


Tech stocks mostly retreated Thursday, following the broader market as investors showed more concern about the growing crisis in Ukraine.

The Dow Jones Industrials remained negative 50.78 points to 17,071.23.

The S&P 500 retreated 2.54 points to 1,997.58. The NASDAQ shed 5.09 points to 4,564.53.

The government in Kiev said Russian troops have entered the eastern part of Ukraine and a NATO military official told Dow Jones Newswires that Russia's army has taken a "more overt" position in the country.

Cloud-based human-resource software company Workday Inc. gave up 2% to fall to $88.29 U.S. after reporting a wider second-quarter loss, but its results still exceeded Wall Street analysts' forecasts.

Yelp Inc. gave up 1.2% to trade at $81.90 U.S. a day after a Goldman Sachs report said the online review and recommendation company, and some other Internet companies, could be attractive acquisition targets this year.

Declines also came from Hewlett-Packard Co., Netflix Inc. Inc. and IBM Corp.

Twitter Inc. shares rose 3.3%, to $49.64, as the micro-blogging company released its Twitter analytics dashboard to all of its users, giving anyone with a Twitter account the ability to see just how many people are reading their tweets.

Small gains also came from Apple Inc., Yahoo Inc., Lexmark International Inc. and VMware Inc.

On the economic beat, the second estimate for second-quarter U.S. gross domestic product indicated expansion of 4.2%. Economists had predicted 3.9% growth in GDP, down from an initial read of 4%.

Weekly jobless claims came in at 298,000, a slightly more encouraging result than what was expected by economists, who forecast 300,000.

Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.34% from Wednesday's 2.36%. Treasury prices and yields move in opposite directions.

Oil prices were up 52 cents to $94.40 U.S. a barrel.

Gold prices surged $7.50 to $1,290.90 U.S. an ounce.

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Source: Baystreet Stock Market Update (Canada)

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