Canadian stocks couldn't rebound today and ended the session lower after being battered by weaker oil and energy prices. Concerns of inflation also helped thwart any significant rally throughout the day. Gold once again found its groove as the U.S. Fed's cautious attitude gave appeal back to the precious metal in the afternoon and prices that were down earlier promptly turned back north.
The S&P/TSX Composite Index closed down 63.94 points, or 0.52%, to 12,170.57.
In Telecom News -- Telus Corp., Canada’s third-largest wireless phone company, is asking the country’s broadcast regulator to ensure rivals, including Shaw Communications Inc., can’t distribute television content exclusively to their mobile subscribers.
BCE Inc., Canada’s largest telephone company, agreed to buy the shares of broadcaster CTV it doesn’t already own for $1.3 billion with plans to increase video offerings for digital TV and wireless subscribers.
On the data front -- Canadian inflation was less than expected in August as energy prices slowed their advance and the economic recovery slowed, giving the Bank of Canada another reason to take a break from its campaign to raise interest rates. According to Statistics of Canada, the consumer price index dropped 0.1 % in August from the previous month for an annual inflation rate of 1.7%, down from 1.8% in July.
On the gold front -- Gold stocks are off today as gold is dipping after three days of gains.
Barrick Gold Corp., the world’s largest producer, declined 1.74% to $46.97. Goldcorp is down .58% to $44.65. Kinross is down as well; dropping 1.4% to $19.04.
As far as energy issues --Methanex Corp., the world’s largest methanol producer, decreased 2.79% to $24.71 after Canadian Imperial Bank of Commerce slashed its rating. Crescent Point Energy Corp. lost 1.52% to $36.82 after announcing a share offering.
The Canadian dollar regained momentum against the U.S. dollar today trading up .00028 of a cent to .97418 cents US.
ON BAYSTREET
Four of the TSX subgroups closed with gains today. Info tech stocks gained .88%, consumer staples gained .69%, and gold closed up .60%.
On the downside -- Energy stocks led the laggards; down 1.09%, financials lost .88% and metals and mining closed down .69%.
The TSX Venture Exchange closed down 5.62 points, at 1680.77, while the Nasdaq Canada index made up ground after yesterday's down day as it closed up 14.35 points to 606.45.
ON WALLSTREET
U.S. stocks gained steam at the end of the trading day to close green. The Federal Reserve moved closer to new actions to boost the sluggish U.S. recovery, saying it stood ready as needed to provide support for the economy. The U.S. central bank's made no changes in monetary policy at the end of a one-day meeting and left overnight interest rates near zero, but the idea of injecting more money into the economy is still a possibility.
In the employment arena -- Payrolls dropped in 36 U.S. states in August indicating the labor market will need considerably more time to recover. Michigan led all states with 50,300 jobs being cut last month.
The Dow Jones Industrial Average had a short-lived rally and ended the day up 7.41 points, or .07% at 10761.03. The S&P 500 dropped 2.93 points, or .26%, to 1139.78. The NASDAQ closed red as well; down 6.48 points, or .28%, to 2349.35.
Tech stocks slipped at the opening bell on Tuesday, led by SanDisk Corp. after it was downgraded by Sterne Agee. SanDisk shares are down 5.80% to $35.57.
Shares of Hewlett-Packard are even at 439.26 and Oracle shares have fallen 1.91% to $26.97 after the two companies finally agreed to settle a legal dispute over the hiring of Mark Hurd.
Despite crude prices being down, shares of BP are trading up $.22 to $38.90. Chevron Corp. is down 0.4% to $79.66.
Among stocks in focus -- Shares of Vivus are up 13.75% to $7.03 on positive study results for QNEXA as an obesity drug.
Shares of Nokia are down 4.09% to $9.85 after the mobile-phone maker announced it will once again be delaying delivery of its N8 smartphone.
Key components of the Dow, Cisco Systems and Microsoft Corp, are down 1.3% and .08% respectively.
Alcoa Inc., the largest aluminum producer in the United States is down 1.2% to $11.24., is down 1.2 percent to $11.24.
Shares of Apple Inc. closed at a new all-time high Tuesday of $283.77. AAPL shares hit an intra-day high of $287.35 earlier in the day and gained just 0.2% from yesterday by the closing bell.
The U.S. dollar was weaker against the euro and the yen, but has made up some ground against the yen after the housing data were released.
Oil futures for October delivery are down $.93 this morning to $73.93 a barrel.
Gold prices closed up another $7.80 to $1288.60.
Bonds: The yield on the 10-year bond decreased 0.07 percentage point, to 2.67%.
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