News Column

Stocks hold own on day

August 6, 2014

Tim Hortons proves star

The Toronto stock market was slightly higher Wednesday afternoon with traders cautious amid worries about growing Russian troop strength on the border with Ukraine.

The S&P/TSX composite index gained 14.38 points to close at 15,202.09.

The Canadian dollar gained 0.41 cents at 91.64 cents U.S.

The TSX gold sector was up as nervous investors pushed December bullion ahead. Barrick Gold shares were up 27 cents to $20.05.

The energy sector declined as Suncor shares descended 32 cents to $42.87.

The base metals sector was down while September copper dropped four cents to $3.17 U.S. a pound. Teck Resources dropped 15 cents to $25.83.

Earnings news supported the TSX as Tim Hortons reported that same-store sales grew 2.6% in Canada and 5.6% in the United States. The restaurant chain also anticipates earnings per share to be near the higher end -- or slightly above -- its current target range of $3.17 to $3.27 earnings per share for the year and its shares ran ahead $4.44, or 7.4%, to $64.52, hitting a record high.

Molson Coors Brewing Co. beat expectations as quarterly net earnings increased 9.5% to $290.7 million U.S. in the second quarter on higher revenues. Revenues grew nearly one per cent to $1.2 billion even though worldwide beer volume fell to 16.6 million hectolitres and its shares ran up $3.74, or 4.9%, to $79.50 in Toronto.

On the economic front, Statistics Canada reported this morning that merchandise exports rose 1.1% in June, while imports declined 1.8%. So, Canada's trade surplus with the world widened from $576 million in May to $1.9 billion in June.


The TSX Venture Exchange remained negative 2.13 points to 992.79

Eight of the 14 Toronto subgroups were down on the day, with health-care down 0.8%, telecoms sliding 0.7%, and metals and mining off 0.4%.

The half-dozen gainers were led by gold, up 1.6%, materials, ahead 0.9%, and consumer discretionaries, up 0.5%


Stocks inched just fractionally higher on Wednesday, shaking off early jitters caused by more trouble overseas.

The Dow Jones Industrials finished higher 13.87 points to 16,443.34

The S&P 500 eked up 0.03 points to 1,920.24. The NASDAQ composite gained 2.21 points to 4,355.05.

Shares of Walgreen plummeted 14% after the company confirmed that it's taking full control of the U.K.'s Alliance Boots but will not move headquarters out of the U.S. That news disappointed investors, who hoped the pharmacy chain would shift its base to the U.K. to save money on taxes in a controversial deal known as an inversion.

Time Warner plunged over 13% after Rupert Murdoch's 21st Century Fox announced it has given up on pursuing a takeover of Time Warner.

Time Warner shares remained under heavy pressure even after logging earnings that crushed expectations amid continued HBO strength.

A tie-up between Sprint and T-Mobile is also now off the table. Shares of both companies tumbled on the news. That could leave French telecom company Iliad as the frontrunner to buy T-Mobile.

Groupon investors are holding a fire sale. The daily deals site plummeted 13% after alarming investors with a wider quarterly loss than expected and a gloomy outlook for the rest of the summer.

On a more positive note, AOL popped 7.5% as Wall Street cheered a 12% jump in second-quarter revenue that easily beat expectations.

Investors also chugged shares of Molson Coors Brewing. The brewer sold less beer during the second quarter but grew profits by hiking prices.

Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.47% from Tuesday's 2.48%. Treasury prices and yields move in opposite directions.

Oil prices fell back 82 cents to $97.00 U.S. a barrel.

Gold prices spiked $22.80 to $1,308.10 U.S. an ounce.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Baystreet Stock Market Update (Canada)

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