Stocks in Toronto turned higher today, with shares of energy companies advancing on oil-price gains and as strong news from the country’s oil industry sent stocks upward.
The S&P/TSX Composite is up 103.94 points, or 0.85%, to 12,382.82.
In data news -- Consumer confidence in Canada slipped for the fourth consecutive month in September, pushed down by the slowing pace of the economic recovery, the Conference Board of Canada said on Wednesday. The board's consumer confidence index fell 1.2 points to 78.1, a full 18.5 points below where it was at the start of the year. Recent Statistics Canada data show the recovery is becoming increasingly patchy.
Statistics Canada reported today that the Industrial Product Price Index increased 0.4% in August, led by primary metal products. The Raw Materials Price Index rose 2.2%, primarily based on higher prices for non-ferrous metals. Also reported was that among the 21 major product groups, 10 posted gains while five decreased and the rest remained unchanged. The industrial advance was mostly led by higher prices of primary metal products, which advanced 3.3% and minor increases in the cost of petroleum and oil (up .4%).
The price of pulp and paper products decreased by .4% while rubber, leather and plastic products were down by .5%. The industrial index rose 0.6% from a year earlier, as raw-material prices climbed 5%. Contributing to the rise in raw materials, prices for non-ferrous metals rose by 6.3% and mineral fuels were up 1.3%. Higher prices of vegetable products (up 3.1%) and animal and animal products (up 1.5%) also contributed to the raw materials increase according to StatsCan.
Toronto’s main energy shares index rose 1.3%, as Canada’s Suncor Energy Inc. shares rose 2.9%. Rising energy-related shares also advanced on positive news from CIBC World Markets, Inc. that stated Canadian oil fields could produce up to 15 billion barrels of oil that were never expected to be extracted.
Cenovus Energy Inc. saw its shares advance 2.74% to $29.60. Cenovus announced last week that it received regulatory approval for its $2 billion Foster Creek expansion.
RIM makes a comeback -- After 2 down days, Research in Motion bounced back today. Closing up 3.39%, the stock helped the information technology sector have a strong day.
Metals still cookin' -- Gold for December delivery, the most active contract, rose $2.20 an ounce, or 0.2%, to $1,310.80 per ounce on the Comex division of the New York Mercantile Exchange. Silver for December delivery added 12 cents, or 0.5%, to $21.82 an ounce. Copper for December moved forward another penny to $3.64 per pound.
China’s state-owned Xinxing Pipes Group Co Ltd said today that it plans to invest up to $1 billion in a Canadian iron ore project, the latest in a series of major investments as the nation scours for more supplies.
Small moves for crude oil and gold had little impact on commodity producers. Suncor Energy Inc. is up 0.2% and Canadian Natural Resources Ltd. rose climbed .8%.
Good Profits -- AGF Management Ltd said on Wednesday third-quarter profit rose nearly 22% attributable to higher revenue and lower costs at its trust. Net profit for the quarter was $27.8 million, or $.31 per share, compared to $22.8 million, or $.25 per share in the third quarter of 2009.
Gold Stocks treading water this morning -- After seeing some gaps down at the open, gold-mining shares are scratching their way back north this morning as spot gold continues trading firmly over $1,300 an ounce.
Goldcorp is down .42% to $45.36, Kinross is down .37% in morning trading to $19.58. Barrick Gold is up .23% to $48.37.
The Canadian dollar is up against the U.S. dollar; trading up .000855 of a cent to .97201 cents US.
ON BAYSTREET
Twelve of the TSX Subgroups closed in the green today. Info tech is led the way; up 2.30%, energy issues are closed up 2.05% and utilities finished up 1.47%.
On the downside -- Health care lost .68% and base metals dropped .14%
The TSX Venture Exchange closed up by 10.03 points to 1713.14, while the Nasdaq Canada index closed green; up 11.65 points to 618.98.
ON WALLSTREET
Oil and natural gas drilling firms moved up sharply today as the energy sector shrugged off losses in the broad equities market and tapped into strength from rising crude prices. Overall, however, the major averages slipped slightly today as the broader market followed the financial sector.
Financial stocks put together a strong intraday bounce to dismiss early losses, but ended up giving it all back and finish with a 0.8% loss.
Crude oil and gasoline futures wavered this morning after a government report showed a surprise decline in inventories of both products.
The Dow Jones Industrial Average closed down 22.86 points, or .21% at 10,835.28. The S&P 500 closed down by 2.97 points, or .26%, to 1144.73. The NASDAQ closed red as well; down 3.03 points, or .13%, to 2376.56.
The chief executive of Johnson and Johnson will tell Congress his company "let the public down" with a string of quality problems that have resulted in millions of recalled medicines. Shares of JNJ, which have been on an upward tear all month, closed down .19% today.
Tax Cut News -- Democrats strategists worry that delaying discussions and tax cut voting being delayed are forcing them to miss an opportunity to define themselves against Republicans. Party strategists warn they are missing an opportunity to define themselves against Republicans.
REVERSE SPLIT -- Most traders knew it was coming, but YRC Worldwide Inc. (YRCW) officially said late Wednesday its board approved a 1:25 reverse stock split to become effective Oct. 1.
The dollar index, which tracks the U.S. unit against six different currencies, declined 0.2% to 78.84 on the expectations that the Federal Reserve would resort to further easing.
The government stated today that it is starting to sell $2.2 billion in trust preferred shares that it holds in Citigroup. This is another attempt by the gov to recoup the costs related to the $700 billion financial bailout. Shares of C are up 2% this afternoon.
Unique Content King -- AOL is pursing this theme recently by adding TechCrunch Inc., Thing Labs Inc., and 5min Media to the AOL family on Tuesday. Shares of AOL are up 3.11% to $24.90 this afternoon.
Now We're Even -- Cisco is down on news that IBM has leveled the playing field through a purchase of a maker of Ethernet switches. Shares of Cisco are down .09% and shares of IBM are up .05%.
On a similar front -- Hewlett-Packard is up this morning on revenue news; totals for the fiscal year are in line with consensus forcasts of $131.6 billion. Shares are up 1.32%.
Tech talk -- Analysts have been commenting this morning about tech possibly being a safe haven. Techs have been providing some strength to the market this morning.
Fins weak -- Financials are the laggards of the S&P 500. Shares of J.P. Morgan are down 1.34% and Bank of America is down .9%.
Among stocks in focus -- Green Mountain Coffee Roasters dropped 17% after the firm said the Securities and Exchange Commission was investigating its revenue recognition practices.
Family Dollar Stores are up 3.6% after the discounter beat consensus earnings forecast and announced plans to buy back up to $750 million of its shares.
Oil giant BP PLC is back in the news as incoming CEO Bob Dudley said he will restructure BP’s upstream business and create a new safety division. BP shares are up 2.2%.
Gold gives a little back -- Spot Gold is down 1.325 to 1,307.78 today.
The US Dollar is gaining against the euro this morning; up .2186% and rising against the yen; up .0356%.
Oil futures for November delivery are down $.30 today to $75.86 a barrel.
Bonds: The yield on the 10-year bond is up .1600% at 2.4720%
