Toronto's main stock index shored up some early volatility today in a widespread advance led by financial shares, which were supported by a better-than-expected quarterly profit at Citigroup and an acquisition by Royal Bank of Canada.
The S&P/TSX Composite is trading up by 58.94 points, or .47%, to 12,668.01.
The price of oil for November delivery is up; gaining 2.38% to $83.18.
Gold for December delivery is green at the moment; up $.10 to $1,371.20.
The Canadian Dollar is down against the US Dollar at the moment; off by .002215 of a cent to .983185 U.S. cents.
ON THE DATA FRONT --
Cross-border financial activity in securities in August continued as has been the trend for nearly two years. Non-residents purchased $11.1 billion of Canadian securities in August with the majority of the investment going to corporate and government business enterprise bonds. Additionally, Canadians acquired $3.4 billion of foreign securities, led by foreign stocks.
CLOSING UPDATE --
Royal Bank of Canada RY announced an all-cash,1.56 billion acquisition of BlueBay Asset Management. Headquartered in London, BlueBay is a leading European fixed-income manager. This deal will increase assets under management in Royal Bank's global asset management arm from $200 billion to about $240 billion.
No bounce -- The materials sector couldn't rebound today as Goldcorp finished down .84% to $44.61 and Teck Resources was walloped; closing dow 2.37% to $44.92.
Rogers Communications Inc., Canada’s largest wireless carrier, increased 2.4% to close at $40.82 after a Bank of Montreal analyst raised his share-price estimate on the stock to $44 from $42.
Highest since 2008 -- BCE Inc., Canada’s biggest phone company, saw shares rise 1.4% to $34.49.
Still on a roll -- Telus Corp., the country’s third-largest wireless carrier, continues climbing as shares climbed again today; up 1.1% to $46.75.
AFTERNOON UPDATE --
More on Potash -- Alberta's provincial money manager is heading up discussions with different Canadian pension funds about a plan to stop the takeover of Potash Corp. Although it may not be viable, the plan is speculates that the funds could take an equity investment of about 30% in Potash Corp. Technically speaking, that would be enough to block BHP Billiton's $39 billion hostile bid. Shares of POT are trading at $145.78; down .68%.
Shares of First Quantum Minerals are down .94% to $82.29 after announcing plans to buy Antares Minerals. Antares is the owner of a major undeveloped copper deposit in Peru.
BlackBerry maker Research In Motion announced the launch of new Middle East services after resolving conflicts with the United Arab Emirates over data security. Shares of RIM are down .53% to $48.97.
MORNING NEWS --
Energy Advances -- Shares of industry giant Suncor Energy Inc. are up .2% on the slight advance in the energy sector.
Canadian Oil Sands Trust is also advancing; up .31% to $26.22.
Financials are strong as well with The Royal Bank of Canada increasing .58% to $55.87. Bank of Montreal is also having a strong day with shares being up $.31, or .51%, to $60.75.
Falling gold prices are holding back Barrick Gold as the miner has dropped slightly; down .14% and Goldcorp; down .53% to $44.75.
ON BAYSTREET
Ten of the TSX Subgroups closed in the green today. Telecom finished up by 1.56% followed by financials; up 1.08% and consumer staples; up .96%.
On the downside -- Metals and mining issues closed down 1.15%, followed by base metals; down .61% and then materials; down .49%.
The TSX Venture Exchange finished the day trading up by 15.68 points to 1838.21, while the Nasdaq Canada index closed in the red; down by .62 points to 638.24.
ON WALLSTREET
Stocks on Wall Street got a nice rebound today and closed near levels that haven't been seen since April. Stocks rode on the back on bank stocks that were fueled by solid earnings from Citigroup and the turnaround in gold which overcame the negative news about industrials that was released this morning.
The Dow Jones Industrial Average closed up by 80.91 points, or .73% to 11,143.69. The S&P 500 finished up by 8.52 points, or .72%, to 1,184.71. The NASDAQ closed in the green; up 11.89 points, or .48%, to 2,480.66.
The US Dollar is up against the euro by .0007 and losing ground against the yen; down .2500.
Oil futures for November delivery are up $1.93 to $83.16.
The 10-year bond yield is down .0850 to 2.910%.
DATA NEWS --
Production in the U.S. dropped in September for the first time in more than a year. Output at factories, mines and utilities fell 0.2% and factory production fell the same .2% as a result of declines in consumer durable goods. The drop in factories, mines and utilities was the first decline since June 2009.
Confidence among U.S. homebuilders rose in October to the highest level in four months. The National Association of Home Builders/Wells Fargo confidence index increased to 16 from 13 in September, data showed today. The index was projected to rise to 14, according to the median estimate from a Bloomberg survey.
The U.S. Treasury Department revealed data this morning that global demand for U.S. stocks, bonds and other financial assets rose in August. Net buying of long-term equities, notes and bonds totaled $128.7 billion in August compared with net buying of $61.2 billion in July. Including short-term securities such as stock swaps, foreigners purchased a net $38.9 billion compared to a net buying of $63.3 billion in July.
CLOSING UPDATE --
Banks stay strong -- The bank sector helped lead the way to a strong day on Wall Street. Leading the way for the Dow, Bank of America Corp. rose 3.01% to $12.34 and J.P. Morgan Chase & Co. gained 2.83% to $38.20.
Beating Estimates -- International Business Machines Corp.’s profit rose 12% and the technology company raised its 2010 profit forecast modestly. IBM reported earnings of $3.59-billion, or $2.82 per share, against $3.21-billion, or $2.40 per share in 2009 which topped analysts expected $2.75 per share. IBM shares closed at $142.83, up 1.25%.
Apple Soars -- Apple Inc. (AAPL-Q318.003.261.04%) announced that net income for the most recent quarter rose 70% on strong sales of iPhones. Apple's net income rose to $4.30 billion, or $4.64 per share, from $2.5-billion, or $2.77 per share, for the same quarter in 2009. Both numbers significantly beat estimates. Revenue soared 67% to $20.3-billion from $12.2-billion last year.
Profits doubled -- VMware reported third quarter profits of $84.6 million as compared to $38.2 million in the same quarter last year. Revenue was $714.2 million, up from $489.8 million. Shares are down in after hours trading as analysts had expect revenues of $699 million.
AFTERNOON UPDATE --
In Energy News -- BP PLC, in combination with its Russian joint venture, TNK-BP, announced that they will be selling its energy holdings in Venezuela and Vietnam to TNK for $1.8 billion. This news is part of a string of asset sales by BP to pay for damages from the oil spill in the Gulf of Mexico. Shares of BP are trading up $.72 at $41.34.
Financial plays leading the pack -- After the strong earnings by Citigroup, regional banks are standouts as KeyCorp is up 3.55% to $8.32, Fifth Third Bancorp is up 2.56% to $12.44 and Zions Bancorp is up 3.55% to $21.36.
More on fins -- Investors look to other large financials for earnings that are performing well today. Goldman Sachs Group Inc. reports tomorrow and is up 1.55% to $153.02 today. Morgan Stanley, up 1.62% to $25.43, and Wells Fargo, up 2.38% to $24.14, report on Wednesday.
Watch your apps -- The Wall Street Journal reported that Facebook users are unknowingly providing access to their names to advertising and Internet tracking companies via some popular applications. The Facebook user's ID may be inadvertently shared through the user's Internet browser as well as an application. Facebook has stated that it is addressing the issue and taking all steps in the meantime to "drastically limit" the exposure of personal information.
AT THE OPEN --
Earnings once again in focus --
Citgroup gave financials a boost as third quarter earnings came in well above estimates. Shares of C are trading up 3.54% to $4.09
Big week in general -- 11 of the 30 Dow components report third quarter earnings this week. More than 100 of the S&P 500 companies reporting this week as well.
Shares of Apple are trading up .64% at $316.76 this morning as investors wait to hear the Company's numbers after the close.
International Business Machines also reports today. Shares of IBM are presently up .91% at $142.35.
Halliburton Co.'s profit rose, but its revenue did not meet expectations, sending its shares lower. Shares of HAL are trading down 4.96% to $34.04.
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