Stocks on Bay Street closed down today, but well off its session lows, after the U.S. Federal Reserve committed to buy $600 billion more in government bonds to revive the U.S. economy.
The S&P/TSX Composite ended the day down by 10.30 points, or .08%, to 12,671.12.
The price of oil for November delivery is up; gaining .34% to $84.98.
Gold for December delivery is green at the moment; up $11.20 at $1,349.80.
The Canadian Dollar is down against the US Dollar at the moment; off by .00559 of a cent to .98946 U.S. cents.
CLOSING NEWS --
News everyone was waiting for -- Mining giant BHP Billiton's $39 billion offer for Canadian fertilizer maker Potash Corp. of Saskatchewan was rejected by the Canadian government late today. The government stated that it wasn't satisfied the bid would be of net benefit to Canada, according to an Associated Press report. BHP Billiton has 30 days to convince the government to change its mind. Shares of T.POT closed down .04% to $146.21.
WestJet Airlines Ltd saw its shares climb today after it announced the first dividend in its 14-year history. Shares of closed up 4.53% to $13.37.
AFTERNOON NEWS --
A sliding price in gold futures and a more firm greenback are hurting gold plays today. Kinross Gold is down; off 1.71% at $17.82, and Agnico-Eagle is down 1.63% at $76.72. Shares of Goldcorp are also lower; down 1.90% to $44.52.
All eyes on POT -- The Canadian government's decision is coming later today on whether to allow Anglo-Australian miner BHP Billiton's $39 billion takeover bid for Potash Corp to go ahead. Shares of T.POT are trading up .01% at $146.29.
ATS Automation Tooling Systems Inc. reported this morning quarterly reports which fell below estimates. The Company cited declining average selling prices and slipping system sales hurt its solar energy unit. Shares of T.ATA are trading down 11.83% to $6.26.
Mortgage lender, Home Capital Group Inc., reported a third-quarter profit above market estimates, helped partly by higher net interest income. Shares of T.HCG are trading up .10% to $48.89.
MORNING NEWS --
Calgary, Alberta based Enbridge Inc. came in under estimates when it reported last night that third-quarter net income dropped to $157 million, or $.42 a share; down from $304 million, or $.83 cents a share, for the same quarter in 2009. Adjusted earnings increased to $.53 a share, from $.42 a share. The Company attributes $85 million of the earnings decrease to its investment in Enbridge Energy Partners LP that suffered line leaks in two lines during July and September (which are still under investigation). Analysts expected Enbridge to earn $.47 per share. Shares of T.ENB are trading down .05% to $56.01.
Crop nutrient manufacturer, Agrium Inc. , announce that its third-quarter profit more than doubled, as the recent strengthening in grain prices helped boost both demand and pricing for fertilizers. Shares of T.AGU are trading off lows, but still down 3.43% to $84.98.
Shares of Taseko Mines are taking a beating this morning after news that the government of Canada decided to derail the Company's development of controversial copper-gold mine in British Columbia.. Shares of T.TKO are trading down 30.69% to $4.54.
ON BAYSTREET
Five of the TSX Subgroups closed in the green today. Health care closed up by .95%, followed by financials; up .45% and then utilities, which finished up by .35%.
On the downside -- Gold stocks closed down .84%, equaled by consumer staples; down .84% and then industrials; down .69%.
The TSX Venture Exchange closed up by 6.23 points to 1,948.64, while the Nasdaq Canada index finished in the green as well; up by 5.00 points to 700.52.
ON WALLSTREET
Stocks on Wall Street crawled along slowly until mid afternoon when the FOMC finally released news on reports of quantitative easing which sent the markets up and down until finally settling with a push into green territory.
The Dow Jones Industrial Average closed up by 26.41 points, or .24% to 11,215.13. The S&P 500 finished up by 4.39 points, or .37%, to 1,197.96. The NASDAQ closed green as well; up 6.75 points, or .27%, to 2,540.27.
The US Dollar is down against the euro by .0096 and gaining ground against the yen; up .4600.
Oil futures for December delivery are up by $.29 to $84.98.
The 10-year bond yield is down .2.3366 to .2574%.
IN DATA NEWS --
The Commerce Department reported that orders for manufactured goods increased 2.1% after being flat in August. In September, orders excluding transportation rose 0.4% after a 1.3% increase in August.
Economic activity in the non-manufacturing sector grew in October for the 10th consecutive month, reported the nation’s purchasing and supply executives in the latest Non-Manufacturing ISM Report On Business. The NMI (Non-Manufacturing Index) registered 54.3 percent in October, 1.1 percentage points higher than the 53.2 percent registered in September, and indicating continued growth in the non-manufacturing sector at a slightly faster rate. The Non-Manufacturing Business Activity Index increased 5.6 percentage points to 58.4 percent, reflecting growth for the 11th consecutive month at a substantially faster rate than in September.
The Mortgage Bankers Association reported this morning that its market composite index declined 5% for the week ended Oct. 29 due in part by a 6.4% drop in refinancings. Purchase applications rose 1.4% for the week. The MBA said the unadjusted purchase index increased 0.2% last week and is now 28% below the same time last year.
Private-sector employers added 43,000 jobs in October, according to a report by payroll processing firm Automatic Data Processing. But overall, employers announced a total of 37,986 planned job cuts last month, up 2.2% from September, according to a separate report by outplacement firm Challenger, Gray & Christmas. On the whole, cuts dropped nearly 32% versus October 2009, when employers announced 55,679.
IN CLOSING NEWS --
Finally -- The FOMC announced plans to purchase another $600 billion in long-term Treasury securities, modestly higher than the markets expectation of $500 billion. Additionally, the Fed announced that it will keep interest rates at historically low levels for a substantial period of time.
IPO News -- General Motors announced that it expects to offer 365 million common shares at a price between $26 to $29 each. Another 60 million in series B mandatory convertible junior preferred stock will be included in the deal.
Smaller Losses Help MGM -- MGM reported that it lost $318 million, or $.72 a share for the third quarter of 2010 compared with a loss of $750.4 million, or $1.70 a share, in the same quarter of 2009. Shares of MGM closed up 10.41% to $12.31.
AMR Corp. saw its shares climb 6.62% to $8.37 during trading hours after a JPMorgan Chase & Co. analyst called the corporate parent of American Airlines a top pick among U.S. carriers. Shares are up another penny after the bell to $8.38.
See Saw -- Donlan Media Co. saw its shares gain 12.12% after the business-information company hiked its 2010 sales forecast, but shares have given back 10.66% after the bell and are trading at $11.06.
AFTERNOON NEWS --
Shares of Casey's General Stores Inc. are dropping today the Company announced that merger talks with 7-Eleven have been halted. Shares of CASY are down 4.10% to $39.75.
Honda Motor Co. reported today that sales for October sales in the United States rose 15.6% to 98,811 vehicles from a year ago. Total car sales rose 4.8% to 51,881 units, and total truck sales increased 30.4% to 46,930 vehicles. Shares of HMC are down .12% to $34.21.
Nice Gains -- Shares of Hartford Financial Services Group Inc. are up today after the insurer hiked its profit outlook for 2010. Shares of HIG are trading up 8.41% at $25.39.
InterClick Inc. shares are moving upward today upon Tuesday's report of quarterly results that topped Wall Street’s estimates. Shares of ICLK are trading up 11.27% to $5.98.
Laggards -- Shares of Garmin Ltd. (GRMN) are down 8.12% to $30.33 after scaling back its full year outlook.
Innophos Holdings Inc. (IPHS) is seeing its shares fall 14.12% to $32.35 after missing earnings estimates today.
AT THE OPEN --
Give me some Privacy -- Chinese firm, Fushi Copperweld, Inc., reported that it has received an offer to go private for $11.50 a share. Shares of FSIN are trading up 16.06% to $10.56.
OpenTable Inc. reported third-quarter earnings that topped Wall Street’s forecasts. Shares of OPEN are trading up 11.84% to $68.67.
Taseko Mines Ltd. reported that Canada thwarted the copper producer’s plans for a mine in British Columbia. Shares of TGB are trading down 30.15% at $4.53.
Earnings Reports Continue -- This morning, RR Donnelley reported more than tripling gains for third-quarter earnings of $53.3 million against $13.1 million for the same quarter in 2009. From a per share standpoint, the integrated communications provider earned $.25 as compared to $.6 in the year before quarter. Net sales rose to $2.5 billion against $2.46 billion. Shares of RRD are trading down 1.41% at $18.56.
PulteGroup Inc. reported a third-quarter net loss of $995 million, or $2.63 a share, including $986 million in charges for goodwill impairment, construction and other insurance reserves, and land-related charges. Additionally, the Company reported that new orders for the quarter dropped to 3,566; a decrease of 12%. Shares of PHM are trading down 2.85% to $7.84.
Aetna Inc. reported third-quarter net income of $497.6 million, a 53% gain compared to $362.2 million from the same quarter in 2009. Per share, the company earned $1.19 compared to $0.73 for a gain of 63%. Revenue totaled $8.54 billion against $8.72 billion. Aetna beat estimates across the board which anticipated $0.68 on sales of $8.44 billion. Shares of AET are trading up 2.35% to $30.67.
AOL Inc. topped estimates today as it reported third-quarter profit in excess of twice the profit from the same quarter in 2009. The Company reported profits of $172 million, or $.93 a share, compared to $74 million, or $.67 a share, for the third quarter in 2009. Revenue fell 26% to $563.5 million. Analysts were expecting profits to come in at $.52 per share on sales of $558.3 million. Shares of AOL are trading up 5.73% to $26.74.
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