Toronto's main stock index lost its momentum today as the resource heavy index was impacted by gold prices that gave back nearly $20 per ounce, declining oil prices and a strengthening greenback.
The S&P/TSX Composite closed trading down by 50.69 points, or .40%, to 12,599.23.
The price of oil for November delivery is down; dropping 2.33% to $80.62.
Gold for December delivery is red at the moment; down $18.80 to $1,324.50.
The Canadian Dollar is down against the US Dollar at the moment; off by .000014 of a cent to .97447 U.S. cents.
ON THE DATA FRONT --
Statistics Canada reported this morning that Canada’s index of leading economic indicators unexpectedly fell in September, the first decline since April 2009, led by housing and manufacturing. The index dropped 0.1% after a revised gain of 0.6%. This was well off of estimates that expected a rise of .2%. The index’s average monthly increase over the past ten years is 0.3%.
StatsCan also stated that new orders for durable-goods manufacturers fell 1.9% from the previous month, and the average factory workweek fell by 0.3% to 36.6 hours. Statistics Canada’s measure of housing starts and existing home sales fell 3.2%.
In employment insurance news, there were 671,210 people receiving regular employment insurance benefits in August, down .1% on a seasonally adjusted basis from July, Statistics Canada said today. This figure represents a 12.6% decline as compared to August of 2009.
CLOSING UPDATE --
Big Name Decliners --
Suncor Energy dropped 1.75% to $33.66, Shares of Kinross ended the day down 3.38% at $17.96, Toronto-Dominion Bank could not regain its early losses and finished down .95% at $75.28. Also amongst the laggards was Barrick Gold which shed .81% to $46.64 and Encana which could not recover today and finished down 2.64% at $28.36.
Teck Resources was a shining light on a dark day. Although TCK.B shares didn't hold the highs, they did manage to close up .94% at $45.53
AFTERNOON UPDATE --
He shoots, he scores --Score Media reported record revenue of $43.8 million for the fiscal year ended August 31. This represents a 13% improvement from a year earlier. It swung to a profit of $.03 a share from a loss of $.02. Shares of SCR are trading up 9.5% to $1.04.
Gainers -- Talisman Energy is trading up 1.16% to $$18.28 and Bombardier continues the upward move that started yesterday. Shares of BBD.B are up 2.76% to $5.21.
Laggards -- Shares of Encana are falling after subpar results and lowering of its outlook. Shares of ECA are trading down 2.09% at $28.52. Kinross Gold is struggling as gold futures have slipped into the red. Shares of K are down 2.64% to $18.10. Royal Bank of Canada is trading off the highs from this morning as shares of RY are now trading down .16% at $56.76.
MORNING NEWS --
Fins struggling -- Bank stocks are coming off lows, but weaker this morning as Canadian Imperial Bank of Commerce is trading down .25% at $79.30 and Toronto-Dominion Bank’s shares are down 0.08% at $75.94.
Gold down -- Gold issues are leading laggards today. Shares of Kinross are down .70% to $18.46, Goldcorp is down .55% at $43.17.
Resource giant, Teck Resources Ltd is trading up 1.63% at $46.05 this morning.
ON BAYSTREET
Four of the TSX Subgroups closed in the green today. Consumer discretionary issues finished up by .39% followed by metals and mining; up .26% and then real estate; up .02%.
On the downside -- Gold issues closed down 1.83%, materials were down .91% and energy issues finished off by .31%.
The TSX Venture Exchange closed down by 10.45 points to 1860.59, while the Nasdaq Canada index closed in the red as well; down by 5.50 points to 633.32.
ON WALLSTREET
Stocks on Wall Street decided to get a little volatile today as the dollar's rally to a 0.4% gain and the S&P 500 pushing on five month highs turned traders against the market. While still closing green, gains were somewhat weak compared to the strength initially in the day.
The Dow Jones Industrial Average closed up by 38.60 points, or .35% to 11,146.57. The S&P 500 finished up by 2.09 points, or .18%, to 1,180.26. The NASDAQ also closed in the green; up 2.28 points, or .09%, to 2,459.67.
The US Dollar is up against the euro by .0039 and gaining ground against the yen; up .1800.
Oil futures for November delivery are down $1.92 to $80.62.
The 10-year bond yield is up .0610 to 2.5310%.
DATA NEWS --
The U.S. Labor Department announced that initial jobless claims declined by 23,000 to 452,000 in the week ended Oct. 15. The prior week’s figures were revised up by 13,000, to the highest level since late August.
By climbing .3% in September, the index of U.S. leading indicators climbed for the third straight month, signaling the recovery will extend into 2011.
For the first time since July, manufacturing in the Philadelphia Fed region expanded this month as factory payrolls grew, a report from the branch of the Bank of Tokyo-Mitsubishi UFJ Ltd. in New York showed today. The general economic index rose to 1 from minus 0.7 in September. Figures greater than zero signal growth.
CLOSING UPDATE --
Winners --
Shares of Vera Bradley Inc. (VRA) took off today in the stock's debut upon pricing 11 million shares at $16 each to secure a total of $176 million in its initial public offering. After hitting a high of the day at $29.74, shares settled down to close at $24.85, or up 55.31%
Pier 1 Imports Inc. got a boost from Oppenheimer maintaining its outperform rating for the retailer. Shares of PIR closed up 10.37% at $8.30.
Select Comfort Corp. shares held strong today as the Company reported third-quarter net income rose to $.19 cents per share as compared to $.15 a share for the same quarter in 2009 and management raised its outlook for the year. Shares of SCSS finished the day up 17.81% at $7.87.
Laggards --
Cirrus Logic Inc. shot down today upon mediocre net income earnings and falling considerably shy of revenue outlooks for the third quarter as the Company announced a range of $88 million to $94 million when analysts anticipated over $100 million. Shares fell 15.68% to $13.77.
Banking firm, Green Bankshares Inc. saw its shares nosedive when the bank reported a third-quarter loss that widened to $2.78 a share from the prior year’s $.59. Shares of GRNB closed down 43.12% at $3.68.
Cardiome Pharma Corp.’s U.S. shares fell today when Astellas Pharma, the drug developers partner, suspended enrollment of patients in a study of Kynapid. A single patient who had atrial fibrillations suffered cardiogenic shock after receiving the drug. Shares of CRME came well of the lows of the day, but still closed down 10.68% at $5.69.
AFTERNOON UPDATE --
Telecom stocks have been a drag on the market today. Verizon is down .43% at $32.50 and while coming back up off its lows, shares of AT&T are still in the red after average earnings results. Shares of T are down .87% at $28.36.
Drug giant, Eli Lilly stumbled again today on weak revenue growth, even though its third-quarter profit rose 38% from a year earlier. Shares of LLY are down .92% at $35.68.
Shares of Travelers are trading up after reporting third-quarter earnings and revenue that topped Wall Street estimates and raising its full-year guidance. Shares of TRV are up .97% to $55.17.
Credit Suisse is seeing share price fall upon reporting a 74% drop in third-quarter net profit. The Company said the biggest drop was in investment banking, where pretax profit slumped 77% to 395 million francs as clients elected to steer clear of the markets. Shares of CS are off by 4.98% at $42.78.
Bob Howard and a team of Goldman Sachs proprietary traders are being hired by private-equity firm KKR & Co. Shares of KKR are up 2.81% to $11.70, +0.32.
AT THE OPEN --
Caterpillar Inc. reported that third-quarter profit increased by 96% to $792 million, or $1.22 a share, from $404 million, or $.64 per share, for the same period in 2009. Sales rose 53% to $11.13 billion. Both figures beat Wall Street analysts which expected earnings of $1.09 a share and revenue of $10.5 billion. Shares of CAT are trading down .21% at $80.15.
Pharmaceutical giant GlaxoSmithKline announced that its third-quarter net profit fell 3.5% to 1.29 billion pounds ($2.04 billion) from 1.34 billion pounds for 2009 as revenue increased 0.8% to 6.81 billion pounds. Shares of GSK are trading down 1.05% at $40.49.
Fast food giant, McDonald's Corp. reported that third-quarter earnings rose to $1.39 billion, or $1.29 a share, from $1.26 billion, or $1.15 a share, for the same period in 2009. Earnings totaled $1.32 a share excluding $.03 a share in currency impact for the quarter. Revenue rose 4% to $6.3 billion. Wall Street estimates expected $1.25 a share, on revenue of $6.22 billion. Shares of MCD are trading up 2.45% at $79.31.
Diamond Offshore Drilling Inc. reported this morning that third-quarter net income fell to $198.5 million, or $1.43 a share, from $364.1 million, or $2.62 a share, for the same period in 2009. Revenue dropped to $799.7 million, from $908.4 million. Both figures beat Wall Street estimates of net income of $1.34 a share and revenue of $796.5 million. Shares of DO are trading up 2.69% at $70.72.
Newly merged after the Continental and United Airlines joined as one, United Continental Holdings, reported its two carrier units tallied up profits during their last quarter as independent operators. For the third quarter, Continental Airlines had a net income of $367 million, or $2.24 a share as compared to a loss of $18 million, or $.14 per share in the year earlier quarter. United posted a quarterly profit of $367 million, or $2.24 a share as compared to the same quarter in 2009 which resulted in a loss of $57 million, or $.39 per share. Shares of UAL are trading up 2.42% at $28.30.
United Parcel Service reported its third-quarter net income launched 81% to $991 million, or $.99 per share, from $549 million, or $.55 a share, for the same period in 2009. The delivery giant's adjusted earnings rose to $.93 per share, from $.55 per share. Revenue rose 9% to $12.19 billion from $11.15 billion. The reported numbers were close to estimates of $.88 a share on revenue of $12.35 billion. Shares of UPS are trading up .32% at $69.87.
The Children's Place Retail Stores cut its third-quarter outlook this morning, citing weaker than expected sales in the quarter to date. The Company now expects quarterly earnings from continuing operations to be between $1.10 and $1.13 as opposed to previously forecast earnings of $1.38 to $1.43. Shares of PLCE are trading down 12.05% at $45.63.
EBay Inc. shares are launching as third quarter net income rose 23%, beating Wall Street forecasts, on the strength of its PayPal payments business. Shares of EBAY are trading up 8.53% at $27.85.
Netflix shares are soaring as well upon reporting that third quarter net income rose 26% as the DVD rental firm’s streaming business gained momentum. Shares of NFLX are trading up 13.05% at $173.14.
