Toronto's main stock index rose to its highest level in more than two years today, assisted in part by minutes from the U.S. Federal Reserve that showed the U.S. central bank feels that additional support to the economy could be beneficial.
The S&P/TSX Composite closed strong; up 40.05 points, or .32%, to 12,575.64.
The price of oil for November delivery is down; losing .64% to $81.68.
Gold for December delivery is down at the moment; down $7.60 to $1,345.70.
The Canadian Dollar is up against the US Dollar at the moment; up by .00029 of a cent to .990095 U.S. cents.
FROM THE DESK OF MR. FLAHERTY --
Canadian Finance Minister Jim Flaherty on Tuesday will release a fall fiscal update that will show the government is still on track to balance the budget in the medium term, a government official said.
EMPLOYMENT NEWS -- U.S. electronics chain Best Buy Co Inc announced that its Canadian unit will boost its workforce by 35% as it prepares for the holiday shopping season. Best Buy, which opened 12 new locations in Canada this year, said it is hiring 2,000 seasonal employees at its more than 70 stores across Canada.
ECONOMY NEWS -- Canada predicted on Tuesday it will balance its budget by the 2015-16 fiscal year after posting a record deficit for 2009-10, but warned that the shaky global recovery could spill into Canada and erode tax revenues. Canada's federal budget deficit for the 2009-10 fiscal year totaled $55.6 billion, or 3.6% of gross domestic product, exceeding expectations due to special payments to two major provinces, the finance ministry said in its annual fall update of fiscal and economic projections.
CLOSING NEWS --
Corn Grows Fertilizer -- Fertilizer stocks were among the top gainers today as corn futures rallied for a fourth day after the U.S. government cut its estimates on the crop last week.
Retailer Agrium Inc was also a solid advancer, closing up 5.32% at $86.49, after hitting its highest level in over a year during today's session. Shares of Potash Corp rose 1.02% to $149.01.
Canadian National Railway Co., the country’s largest railroad, dropped 1.5% today after Stifel Nicholas & Co analyst, John G. Larkin, reduced his rating on the stock.
Banks Move -- Canada's fourth largest bank,Bank of Montreal, gained 1% to $59.84, while National Bank of Canada rose 0.8% to $66.30. In addition to fins generally climbing, Canadian Imperial Bank of Commerce increased share value by 1.1% to $77 after National Bank analyst, Peter Routledge, raised his rating on the stock to ''outperform'' from ''sector perform''
Commodities take the day off -- Commodity stocks weakened amid reports that China’s biggest banks cool lending and establish more reserves, which raised fears about Chinese growth.
Shares of Kinross dropped .52% to $19.15, while Barrick Gold fell .22% and Goldcorp gave back .25% to close at $44.45.
Newfoundland's offshore oil industry regulator approved plans today by the Exxon Mobil Corp-led, Hibernia Management and Development Company, to develop a new field using the project's existing platform and infrastructure.
AFTERNOON NEWS --
Agrium Inc., Canada’s second-biggest fertilizer producer, is climbing; up 4.3%, after corn futures rose to a two year high.
Sliding prices for shares of Canadian metals and gold mining companies are applying pressure to the broader market as gold and copper prices retreated. Declines are being fueled in part by Teck Resources. Shares of TCK.B are down 1.87%.
Big gold miners are also pushing down the market as shares of Barrick Gold Corp. have recovered from lows today, but are still down .26% and shares of Goldcorp are falling; down 1.44% to $43.92.
Apache Corp (NASDAQ: APA) announced today that it completed a $3.25 billion deal to buy BP Plc's (NYSE: BP) natural gas assets in Western Canada. Apache's Canadian unit will take over operation of the properties on November 1. Some rights of first refusal are pending and others are the subject of a court proceeding.
MORNING NEWS --
New Deadline -- Research in Motion has been given a new deadline of Jan. 31 by the Indian government for a final solution to get access to all its services. Shares of RIM are down .82% to $49.57.
New Leader -- Sajjan Jindal-controlled JSW Group, which runs JSW Steel, has surfaced as the front-runner in the race for a controlling stake in CIC Energy. The deal is reportedly valued at $450 million to $500 million. Shares of ELC are down 3.72% to $6.21.
More on Potash -- Although not confirmed by NMDC Chairman Rana Som, it was reported by the Economic Times on Monday that China's Sinochem has approached Indian state-run miner NMDC Ltd for a joint bid to buy Potash. Shares of POT are up 1.13% to $149.17 this morning.
JV News -- Statoil (a Norwegian oil firm) is expanding its shale gas operations in the United States. The Company reported on Sunday that it had created a joint venture with Talisman to acquire acreage on the Eagle Ford prospect in Texas for $1.325 billion. Shares of TLM are down 1.43% to $14.90 so far today.
ON BAYSTREET
Nine of the TSX Subgroups finished in the green today. Telecom was up by 1.31%, followed by health care; up .59% and then utilities, which closed up by .53%.
On the downside -- Base metals were down .76%, industrials were off by .98% and metals and mining issues gave back .76%.
The TSX Venture Exchange closed up by 18.46 points to 1803.34, while the Nasdaq Canada index finished in the green red; up 1.59 points to 633.09.
ON WALLSTREET
Stocks on Wall Street rallied today and ended higher as investors embraced signals from the Federal Reserve that additional monetary easing is coming.
The Dow Jones Industrial Average finished up by 10.06 points, or .09% to 11020.40. The S&P 500 closed up by 4.45 points, or .38%, to 1,169.77. The NASDAQ ended the day in the green; up 15.59 points, or .65%, to 2,417.92.
The US Dollar is gaining against the euro by .0019 and losing ground against the yen as; down .3500.
Oil futures for November delivery are down $.53 to $81.68.
The 10-year bond yield is up .4100 to 2.4220%.
DATA NEWS --
Consumer confidence rose 2.4% in October from September, pushed north by stock market gains and optimism that next month's elections will result in changed policy that may boost job creation.
Investor's Business Daily and TechnoMetrica Market Intelligence said their IBD/TIPP Economic Optimism Index rose to 46.4 in October from 45.3 in September. Readings above 50 indicate optimism, while those below 50 point to pessimism.
The index is now 0.2 points below its 12-month average of 46.6, and 2.0 points above the 44.4 level IBD reported in December 2007 when the recession began.
CLOSING NEWS --
After the closing bell, Intel Corp. reported a 59% jump in third-quarter profit. Chief Executive Paul Otellini attributed the rise to a ''solid demand from corporate customers.'' Shares of INTC are up 1% in after hours trading.
Almost there -- Shares of Apple almost hit the $300 market, hitting a high of $299.50 today. Shares closed at $298.54.
Tech stocks gain -- As mentioned in ''AFTERNOON NEWS,'' tech stocks were leading the rally before it started. Share of tech giant, Google, closed up .47% at $541.39.
No Honor -- Electronic Arts Inc. saw its shares fall nearly 6% today, a move that analysts attributed to disappointing critical reviews for its newly redesigned combat franchise ''Medal of Honor.''
Divy it up -- Goodrich Corp.'s board on Tuesday approved a 7% increase in the company's quarterly dividend to 29 cents a share from 27 cents. The dividend will be paid Dec. 30 to shareholders of record as of Dec. 1. Shares of GR bounced off the low of the day of $74.36 to close at $76.42.
Foreclosure Detail -- GMAC Mortgage, a unit of Ally Financial Inc., is mobilizing several legal and accounting firms to expand its foreclosure reviews to all 50 states.
Solid Earnings -- CSX Corp. reported third-quarter net income rose to $414 million, or $1.08 a share, from $290 million, or 73 cents a share, in the same period last year. Revenue climbed 16% to about $2.7 billion on the back of a 10% increase in volume. Shares of CSX closed down at $57.26 during trading hours, but are up to $58.55 in after hours trading.
AFTERNOON NEWS --
Treasury prices are up today, pushing 10-year yields toward the lowest levels of 2010.
Tech Stocks Buoying Market -- While not exactly flying, tech stocks are trading primarily green today. Microsoft Corp. is up .16%, Dell Inc. is slightly in the green; up .01%, Cisco Systems Inc. are gren by .16%, Yahoo Inc. is up by .21% and Broadcom Corp. is ahead by .36%. Shares of Intel are still fluttering right around even as they did all morning. Shares of Apple, Inc. are still continuing their quest for $300; up another $1.48 to $296.82 so far today.
Ratings Slash -- Fitch Ratings cut Eastman Kodak Co.'s rating outlook today to negative from stable and affirmed its issuer default rating at B-. Shares of EK are up 1.42% to $4.28.
Popper -- Shares of Motricity Inc. (MOTR) are up sharply today as a regulatory filing from Monday revealed the Company has signed a new deal with Reliance Communication, a mobile-phone operator in India. Shares are up nearly 15% today.
Takover? -- Shares of OfficeMax Inc. (OMX) have climbed 6.48% today after J.P. Morgan analysts wrote that the Company could be a takeover target.
Up Right Now -- RightNow Technologies Inc. are up 13.58% today after the Company raised its third-quarter earnings forecast.
AT THE OPEN --
Merger News -- Shares of King Pharmaceuticals Inc. surged after Pfizer Inc. agreed to buy the drug maker for $3.6 billion in cash. Shares of KG are up 39.36% to $14.15.
Earnings Plays -- CSX and Intel both report after the bell today. Sentiment is apparently weak as share of CSX are off by 1.81%. Shares of Intel were down at the bell, but have pulled back north to be ahead by 1 penny at the moment.
No love for Energy -- Share of energy plays are hurting the markets this morning. Coal producers Massey Energy (down 2%) and Peabody (down 2.5%) are leading the way. Exxon, the sector’s largest and most liquid group, is down 0.6% to $64.16.
Downgraded -- Shares of Verizon are down 2.2% this morning as Sanford Bernstein analyst, Craig Moffett, lowered ratings for the Company to ''marketperform.''
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