Perhaps new numbers got the better of Canadian investors, but, whatever the reasons, stocks faded from their initial dizzy heights Monday before settling just above Friday’s levels.
The S&P TSX Composite Index increased, but only 28.5, to 8,656.5
Economically speaking, the Conference Board of Canada said consumer confidence ticked upward slightly this month, but remains at recession-era lows as Canadians largely remain pessimistic about their job prospects and their financial situation.
The index rose 2.5 points to 70.2 from December's 26-year low reading, but remains at levels consistent with the recessions of the early 1980s and 1990s.
The TSX financial sector rose after British bank Barclays announced had made a good profit for 2008 and that it did not need any cash bailouts to stay in business. Markets had feared the bank would be next in line to be rescued by the state and have to give up a stake to the government.
Barclays expects pre-tax profits of over $7.3 billion for the full year 2008 despite writing down big writedowns on bad assets.
On the TSX, Royal Bank advanced $1.59 to $29.67 while CIBC shares were 70 cents higher to $44.70 after the bank announced it is raising $200 million through a preferred share offering. The eight million shares are priced at $25.
Insurer ING Canada Inc., a subsidiary of financial giant ING Group, said Monday it booked a fourth-quarter loss of $64.1 million as full-year profits sank 75% on stock market turbulence as its parent slashed 7,000 jobs. Its shares climbed 63 cents to $31.96.
The TSX energy sector rose as weak global demand continues to weigh on prices.
Petro-Canada improved $1.41 to $29.01 and Suncor Energy Inc. gained $1 to $25.10.
The base metals sector moved up in the wake of an announcement from mining company Freeport-McMoRan that it lost $13.9 billion U.S. during the fourth quarter with the price of metals plunging.
The loss amounted to $36.78 per share U.S., compared with a net income of $414 million, or $1.05 per share in the prior-year period.
Revenue fell 50% to $2.1 billion U.S. as copper prices plunged more than 60% in recent months, but its shares were up $3.13 or 13% to $25.94 U.S.
Teck Cominco Ltd. advanced 38 cents to $5.99 and HudBay Minerals was up 39 cents to $4.76.
Barrick Gold Corp. stepped back $1.69 to $47.10.
Pfizer Inc. early Monday confirmed weekend reports that it would acquire Wyeth for $68 billion U.S.
The cash-and-stock deal represents a 29% premium to Wyeth's closing share price Friday.
The combined company will have 17 products that each have more than $1 billion in annual sales.
But beyond the implications for the drug industry, the $22.5 billion in financing put up by banks for the combination is a reassuring sign, suggesting credit markets are slowly starting to improve after locking up following the mid-September bankruptcy of Lehman Brothers Holdings Inc.
The Canadian dollar rallied 0.55 cents to 81.77 cents U.S.
BAYSTREET
Nine of the 13 TSX sub-groups were in positive country, health-care stocks flourishing 2.4%, followed by real estate, living 1.8% higher and financials, picking up 1.5%
The TSX Venture Exchange advanced 7.47 points to 867.16, while the NASDAQ Canada index slid 13.88 to 511.52
ON WALLSTREET
The Dow Jones industrials finished only 38.5 points in the black to 8,116. The Standard & Poor's 500 index gained 4.6 points to 845.60. The Nasdaq composite index was up 12.17 points to 1,489.46
Stateside, the National Association of Realtors reported that sales of existing homes rose 6.5% from November to December, from a downwardly revised pace of 4.45 million in November.
The median sales price plunged to US$175,400, down 15.3% from a year ago.
Heavy equipment maker Caterpillar Inc. reported that its fourth-quarter earnings fell 32% to $975 million U.S. while revenue rose 6% to $12.92 billion, and offered buyouts to 25,000 workers and said it would cut executive compensation.
Caterpillar said Monday it was "whipsawed" in the final three months of 2008 as a sharp drop in economic conditions and plunging commodity prices hit industries like mining that use the company's equipment and its shares fell $3.33 to $32.33.
There was some upbeat earnings news from McDonald's Corp., which posted better-than-expected profits of $985.3 million, or 87 cents per share, four cents better than expectations but its shares stepped back 62 cents to US$57.40.
Home Depot shares rose $1.09 to $22.81 after the home improvement giant said it is laying off 7,000 workers, or 2% of its workforce, and is getting out of its EXPO Design Centre business. It also reaffirmed its 2008 earnings.
And Sprint Nextel Corp., the third-largest wireless provider in the U.S., is eliminating about 8,000 positions in the first quarter as it seeks to cut annual costs by $1.2 billion. Its shares were unchanged at $2.46.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 2.66% from 2.61% Friday. Treasury prices and yields move in opposite directions. Yields on the 2-year, 10-year and 30-year Treasurys all hit record lows last month.
U.S. light crude oil for March delivery fell 74 cents to settle at $45.73 a barrel on the New York Mercantile Exchange.
COMEX gold for April delivery rose $13 to $910.70 an ounce.
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