Toronto's main index closed down today as gold prices fell after setting one record high after another last week. Base metals and mining stocks dropped along with the sliding precious metal price while the US Dollar gained some on the Loonie as the USD typically moves opposite gold.
The S&P/TSX Composite closed in the red; down 40.14 points, or .32%, to 12,322.94.
The price for oil for November delivery finally fell; dropping .05% to $81.54.
Gold for December delivery slipped into the red today; down $.70 to $1.315.40.
The Canadian Dollar is down against the US Dollar today; down .000285 of a cent to .977771 U.S. cents.
Holiday Hiring -- Electronics retailer Future Shop says it plans to hire more than 4,000 seasonal employees across Canada for the holiday shopping season. The new hires will increase the Future Shop workforce by over 40%. The Company stated that it will look to social network platforms such as Facebook and Twitter to attract tech-savvy employees for jobs across all 146 stores.
CLOSING NEWS --
Potash saga -- With the issuance of the report breaking down the possible effects of a Potash takeover, the Saskatchewan government has begun pondering the consequences of it decision either way. While the deal could cost the government a significant amount of revenues, opposition to the bid could depress Potash Corp's share price and possibly hurt junior potash exploration companies.
Miners give some back -- Barrick Gold fell 1.8% to $47.09 and Iamgold dropped 1.7% to $17.66.
As far as the oil sands -- Canada's environment minster has assembled a scientific panel to examine whether Alberta's oil sands projects are polluting the Athabasca River as charged by an influential water ecologist.
AFTERNOON NEWS --
The Conference Board of Canada stated that the BHP Billiton's proposed takeover of PotashCorp could reduce Saskatchewan government revenues by at least $2 billion over the next 10 years while having little or no net effect on employment in the industry. Shares of POT have turned back green; trading up 1.71%.
Gold prices hovered near record levels on Monday before slipping firmly into the red as traction was not to be had.Miners continue to be down in the early afternoon.
Teck Resources dropped 1.1 percent to $42.88 as a rally in copper prices stalled, in part due to the strengthening US Dollar.
MORNING NEWS --
An independent report is due today on the economic impact of a Potash Corp takeover. It is believed that this will set the tone for a Canadian political response to BHP Billiton's $39 billion hostile bid. While this report may have some impact, a final decision is still weeks away as to whether or not the takeover will represent a ''benefit to Canada'' as described in the Investment Canada Act. Shares of POT are up .03%.
Research in Motion is still in talks in India to keep Blackberries online while it works through complications. Shares of RIM are down .70%.
Energy Stocks hanging tough -- Canadian Natural Resources Ltd. is near a two month high; up .33% to $36.89.
Miners giving some back today -- Barrick Gold Corp., the world's largest gold producer, is down 1.83% to $46.15 and Goldcorp is down .92% to $44.14.
ON BAYSTREET
Four of the TSX Subgroups closed in the green today. Telecom led the way; closing up 1.43%, followed by real estate; up .10% and consumer staples, which were slightly up by .08%.
On the downside -- Base metals closed down 1.92%, metals and mining stocks were down 1.73% and Gold issues finished in the red by 1.37%.
The TSX Venture Exchange closed down by 5.23 points to 1739.56, while the Nasdaq Canada index finished in the red as well; down 12.35 points to 623.46.
ON WALLSTREET
Weighted down by a host of downgrades, subpar housing and factory order data and energy sectors stumbling all day, U.S. stocks took a hit today. Any positive mumblings on Wall Street were encapsulated by rhetoric about the possibility of gloomy Jobs Report on Friday as well.
The Dow Jones Industrial Average closed down 78.41 points, or .72%, to 10,751.27. The S&P 500 finished down 9.21 points, or .80%, to 1,137.03. The NASDAQ finished red as well; down 26.23 points, or 1.11%, to 2,344.52.
The US Dollar is gaining against the euro by .0109 and gaining ground against the yen as well; up .1500.
Oil futures for November delivery are down $.04 to $81.54.
The 10-year bond yield is down .4700 to 2.4790%.
FROM THE GOVERNMENT -- U.S. government issues a broad travel alert for Americans heading to Europe based on a slight increase in possibilities of terrorist actions by al-Qaida or other groups. Britain and Japan have also issued similar alerts. The travel alert is scheduled to last until the end of January 2011. Important to note: This is not the highest level alert. Travelers are advised to be vigilant, but there is no confirmed intelligence defining any impending terrorist actions, but there is general intelligence that ''something could happen.''
Pending Home Sales Data -- The National Association of Realtors says its seasonally adjusted index of sales agreements for previously occupied homes climbed 4.3% to a reading of 82.3. While an increase from last month, that's still more than 20% below the pace in the same month in 2009.
Factory Orders -- The Commerce Department reported this morning that factory orders fell 0.5% in August, the third drop in the past four months. Orders were up 0.4% in July.
Investors looking ahead to jobs report on Friday.
The Troubled Asset Relief Program (TARP) was officially over on Sunday. Life after TARP has now begun.
CLOSING NEWS --
Chevron Corp. (CVX) shares edged higher in late trading after outlining its share buyback plan. It expects to repurchase $500 million to $1 billion a quarter. Shares are up .71% in after hours trading.
Shares of Lexmark (LXK) took a hit as another casualty of an analyst downgrade. Barclays analyst Ben Reitzes lowered his rating on Lexmark to equal weight from overweight. Shares closed down 3.26%.
The Fairholme Fund said late today that it's interested in investing about $1 billion in the initial public offering of AIA Group Limited, a subsidiary of American International Group, Inc.
Big Winner -- Shares of Dynamex Inc. rose 37.5% after the provider of same-day delivery and logistics services agreed to be acquired for $210 million by Greenbriar Equity Group.
Big Loser -- Shares of GTSI Corp.(GTSI) fell more than 40% after Eyak Technology said it had withdrawn its bid for the IT-systems integrator.
American Express Co. shares fell 6.5% after the Justice Department sued the credit-card company for alleged anti-competitive practices.
Breaking News -- Alcon Inc. just announced that it named Robert Karsunky chief financial officer effective Nov. 1.
AFTERNOON NEWS --
The American Bankruptcy Institute reported that U.S. consumer bankruptcy filings rose 11% in the first nine months of this year, versus the same period in 2009.
Microsoft Dow's worst performer; down 2.14%.
Homebuilders struggling -- Lennar (LEN) losing 0.3% at $15.63 and Meritage Homes (MTH) shedding 0.8% to $19.56.
UBS (UBS) and Credit Suisse (CS) are being required to hold more capital than their international peers under new rules from the Swiss government. Shares of UBS were up 0.6% to $17.13 while Credit Suisse's stock was dropping; down 0.1% to $43.19.
AT THE OPEN --
Visa, Inc and MasterCard, Inc are approaching a settlement with the Justice Department in an antitrust probe over credit card acceptance rules.
Verizon announced yesterday that it will be paying out $90 million to customers as restitution for erroneously charges for data sessions or internet use. Each customer can expect to see a whopping $2 to $6.
LG Electronics Inc announced this morning that it had ditched a plan to launch a tablet computer based on Google Inc's Android 2.2 operation system known as "Froyo." This change of plans could delay the debut of its first PC tablet that is scheduled for next quarter.
Getting hostile -- Sanofi-Aventis is taking its offer of $69 per share ($18.5 billion total offer) total straight to the shareholders of Genzyme after Genzyme executives refused to negotiate. Chris Viehbacher, Sanofi-Aventis CEO, has met with over 50% of the Genzyme large shareholders and the consensus is that the Genzyme management needs to meet more seriously with Sanofi to consider an offer (as reported on interview on CNBC this morning).
Stocks to Watch --
AutoNation (AN) announced that its retail new vehicle unit sales in September 2010, as reported to the applicable automotive manufacturers, totaled 18,040, an increase of 35% as compared to September 2009.
Merger/Acquisition News --
Microsemi Corporation (MSCC), a manufacturer of integrated circuits, semiconductors and RF subsystems, announced the signing of a definitive agreement to acquire Actel Corporation (ACTL). Shares of MSCC are up 8.42% and shares of ACTL are up 30.46%.
MI Developments Inc. (MIM) announced that ST Acquisition Corp. said it would buy shares of the company that it does not already own for $13 a share in cash. Shares of MIM are up 29.15%.
FDA Approved -- Mylan Inc. (Nasdaq: MYL) today announced that its subsidiary, Bioniche Pharma, received final approval from the U.S.F.D.A for its Abbreviated New Drug Application for Fludarabine Phosphate Injection USP, 25 mg/mL, packaged in 50 mg/2 mL single-dose vials. Shares of MYL are up .42%.
Downgraded --
Microsoft (MSFT) downgraded to neutral by Goldman Sachs. Shares are down 2.1%
Kellogg (K) downgraded to neutral by UBS. Shares of K are up .04%.
No Deal -- The New York Post reported that Sara Lee (SLE) turned down a buyout offer from investment firm KKR & Co. (KKR). Shares of SLE are up 11.02% while shares of KKR are down .28%.
On The Lighter Side -- If you noticed the U.S. Ryder Cup team donning attire that had the team logo for the Europe Ryder Cup team, you weren’t confusing team members changing citizenship. The U.S. rain gear, which was supplied by Sun Mountain Sports, wasn’t quite as waterproof as expected. In fact, team members ditched their team rain gear in favor of new, truly waterproof duds that were purchased from a merchandise stand. The blue rain suits must have had an impact, as the U.S., which was leading early on in an attempt to retain the Cup, was ''stormed'' by the Europeans and is now trailing as the final day is underway.
News just in -- Europe defeats the U.S. to win back the Ryder Cup.
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