Stocks in Toronto had a strong day, led by metals and mining stocks as all the subindices closed in positive territory. The markets were fueled all day by rising commodity prices and on the back of positive US data and BOJ statements.
The S&P/TSX Composite closed with strength; up 175.06 points, or 1.42%, to 12,498.00.
The price of oil for November delivery is up again; climbing 1.39% to $82.60.
Gold for December delivery is flying again; up $24.20 to $1,339.60.
The Canadian Dollar is up against the US Dollar today; up .000275 of a cent to .983865 U.S. cents.
CLOSING NEWS --
Miners pushed north today with Agnico Eagle up 3.21%, Iamgold Corp climbing 2.49%, and Barrick Gold closed up 2.31%.
The Bank of Canada is performing research on the effects of monetary policy and if it help dampen future asset bubbles, Senior Deputy Governor Tiff Macklem stated today.
"If we look only at interest rates, inflation, and output, we may miss bubbles and other elements of systemic risk as they build," Mr. Macklem stated. "And, if we are to begin to consider the role of monetary policy in dampening financial imbalances, we need a deeper understanding of how one affects the other."
Potash Corporation spoke out today against the report that favors BHP Billiton's $39 billion offer to buy the Company over a potential bid from a state-owned Chinese entity. Potash stated that the report undervalues the royalty revenue that the province could lose should BHP's hostile bid happen.
AFTERNOON NEWS --
What started as a $200 million preferred share offering was increased by Fairfax Financial Holdings Ltd. to $250-million a week ago. The offering was completed this morning, but the Company promptly exercised its full over-allotment option, which brings the total size of the offering to $300-million.
After further review of the report that showed big revenue losses from the possible takeover of Potash by BHP Billiton, the Saskatchewan government is indicating that it will want more promises from BHP before considering backing the takeover. Shares of Potash are trading down 1.66% this afternoon.
With the notorious oil leaks behind them, Enbridge, Inc. is now considering building a new pipeline to the U.S. Gulf Coast in the future. Shares of ENB are trading up .79% this afternoon.
MORNING NEWS --
Brookfield Properties Corp. and Brookfield Homes Corp. announced this morning they agreed to combine the two real estate firms to form Brookfield Residential which will trade on both the New York Stock Exchange and the Toronto Stock Exchange. Combined, the firm has been valued at $1 billion in equity and $2.5 billion in assets.
Gold Corp. and Goldcorp Inc. are both up more than 1%.
The price of copper is also climbing this morning and further fueling miners. Shares of Canada's Lundin Mining Corporation are up 2.6% to $5.16
ON BAYSTREET
All of the TSX Subgroups closed in the green today. Metals and mining led the way; up 3.60%, followed by base metals; up 2.82% and gold issues, which closed up by 2.34%.
On the downside -- no subgroups closed in negative territory.
The TSX Venture Exchange finished up by 28.47 points to 1768.03, while the Nasdaq Canada index closed in the green as well; up 8.84 points to 632.30.
ON WALLSTREET
U.S. stocks soared today reaching levels that haven't been seen since May with strong buying pressure being provided as speculation of further quantitative easing drove the US Dollar further into the ground.
The Dow Jones Industrial Average closed up 193.45 points, or 1.80%, to 10,944.72. The S&P 500 finished up by 23.72 points, or 2.09%, to 1,160.75. The NASDAQ closed green as well; up 55.31 points, or 2.36%, to 2,399.83.
The US Dollar is dropping against the euro by .0162 and losing ground against the yen as well; down .2300.
Oil futures for November delivery are up $1.13 to $82.60.
The 10-year bond yield is down .0500 to 2.4740%.
FROM THE GOVERNMENT --
The Institute of Supply Management's Non-Manufacturing Index rose to 53.2% in September, up from 51.5% in August and ahead of the 52.1% forecast.
Major U.S. airlines said their flights and schedules have been not been affected by the State Department alert on issued on Sunday that warned American tourists of the potential for attacks by al-Qaeda and other groups in Europe.
CLOSING NEWS --
Google TV will debut tomorrow. Shares closed up 3.04% to $538.23.
Commodities Soar -- Gold, oil, silver, and copper climbed to new highs. Gold ended the day with a record close of $1,340.30 an ounce, after hitting an intraday high of $1,342.60.
Tech stocks show strength -- Shares of Electronic Arts climbed 5.07% to $17.82 on news of new soccer game ''FIFA 2011'' having strong sales in its opening weekend.
Apple Inc. climbed again today, climbing 3.7% to $288.94.
Chip maker Atmel Corp. rose $.41 to $8.39 after a reiteration of a buy rating and price target move from $7.50 to $10.00 from UBS analyst Steven Eliscu.
Intel and Microsoft also had green days, closing up 1.48% and 1.84% respectively.
The American Bankers Association's Consumer Credit Delinquency Bulletin revealed that delinquencies on bank cards were at 3.62%; down from the previous quarter when the rate was 3.82%.
29 of the 30 companies that make up the Dow rose today, with Boeing Co. (up 3.42%) and Bank of America Corp.(up 3.12%) leading the way.
American Express Co. dropped again today (down 1.97%) as the antitrust lawsuit is still weighing heavily on investors.
President Obama stated that solar panels and a solar powered hot water heater will be placed on the roof of the White House.
IN AFTERNOON NEWS --
Caterpillar Inc. and DuPont are leading gainers for the Dow, with nearly all of the Dow's 30 components in the green.
American Express (AXP) was the index's biggest laggard, falling 3.2%, followed by Hewlett-Packard (HPQ) and Home Depot (HD).
Mexican broadcaster Grupo Televisa announced that it will be expanding a license deal Univision Communications and invest $1.2 billion in Univision Communications. U.S. shares rose 9.4% today.
AT THE OPEN --
Walgreen Co. announced this morning that September same-store sales rose 0.4%. The specialty retailer said its total sales for the month climbed 5.3% to $5.64 billion. Shares are up 3.47%.
Shares of Talbots Inc. are down 11.32% after the women’s clothing retailer cut its fiscal third-quarter revenue forecast, citing ''inconsistent'' customer traffic.
Plains Exploration & Production Co. announced this morning that it will pay $578 million in cash to buy interests in 60,000 acres in the Eagle Ford oil and gas fields in South Texas. Approximately 1/3 of the land is located in a joint operating area with EOG Resources.
Stocks to Watch --
Drug News -- Novartis AG, announced that it has stopped developing two drugs. (One for hepatitis C and the other for candidiasis) and will take related third-quarter charges to earnings totaling $808 million. Shares of NVS are up .91% this morning.
Celldex Therapeutics announced promising data from a Phase I/II study for its cancer treatment DDX-1401.. Shares are up 17.87% this morning.
Wolverine World Wide Inc., the producer of footwear and apparel, reported third-quarter net income rose 27% on 12% higher revenue and it raised its outlook for 2010. Shares are up 2.29%.
On The Lighter Side -- Tsk, Tsk, Tsk -- A French court sentenced former Societe Generale trader Jerome Kerviel to 5 years in prison today (serve 3 years, 2 years on probation) for his part in the 2008 trading scandal. Kerviel was also ordered to reimburse the French bank nearly $7 billion dollars. Kerviel admitted his actions, but claimed his superiors knew what he was doing. He intends to appeal the decision.
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