P.M. market numbers: January 14, 2010

By Staff | January 14, 2010 | Last updated on January 14, 2010
4 min read
| North American markets | International markets | Bonds | Currency | Commodities |

The Toronto stock market closed lower Thursday as energy stocks deteriorated amid another day of falling prices while investors looked to a key earnings report from chip giant Intel Corp. after the close.

The S&P/TSX composite index was 49.18 points lower to 11,804.38 with the tech sector the only main source of support before Intel, a tech bellwether, delivered its results.

The Canadian dollar was up 0.68 of a cent to 97.71 cents US.

Intel Corp., the world’s biggest chip maker by volume, surpassed analyst estimates of 30 cents a share, excluding extraordinary items. Earnings came in at 40 cents a share, a big improvement from four cents a share a year ago. Revenue was US$10.6 billion versus estimates of US$10.2 billion.

Investors see the chip maker’s earnings as a sign of business and consumer demand in the overall economy.

"Intel is a very key ingredient in that whole PC business," said Kathryn Del Greco, investment adviser at TD Waterhouse Private Investment Advice. "That really is a very good litmus test for us in what we see from the end user, what the demand is for that product — and it’s such a very key bellwether in that sector."

Del Greco pointed out that the bar has been raised for the fourth quarter: good earnings alone aren’t enough to keep investors happy.

"The main thing that we’re looking for from this next earnings cycle is topline revenue growth as opposed to cost-cutting measures to improve profitability."

The TSX tech sector led advancers ahead of the Intel earnings, up 1.5 per cent with Research In Motion Ltd. ahead 74 cents to $68.12.

Eastman Kodak Co. said it had filed suits against Apple Inc. and RIM, alleging those companies have violated patents related to digital camera and digital imaging technologies.

Falling railway stocks helped send the industrials sector down almost one per cent. Canadian National Railways fell $1.57 to $55.34 while Canadian Pacific Railways lost $1.24 to $55.15.

The gold sector was the biggest decliner, down 1.52 per cent even as the February bullion contract on the New York Mercantile Exchange gained $6.20 to US$1,143 an ounce. Goldcorp Inc. lost $1.04 to $41.51 while Barrick Gold Corp. faded 57 cents to $41.38.

And the TSX energy sector moved down 0.6 per cent as the February crude contract on the New York Mercantile Exchange gave back 26 cents to US$79.39 a barrel. Crude has fallen about US$3 over the last two sessions as data points to rising U.S. inventories. Canadian Natural Resources gave back 70 cents to $72.80 and Husky Energy declined 53 cents to $29.39.

The market also found support from the base metals sector, which rose 0.5 per cent as March copper in New York was down a penny at US$3.39 a pound. Performance was mixed with Sherritt International down 23 cents to $7.19, while Labrador Iron Mines Holdings shot up 51 cents or 12.94 per cent to $4.45.

Shares in Duluth Metals Ltd. ran up $1.13 or 52.8 per cent to $3.27 after announcing a joint venture with Chilean copper miner Antofagasta. Duluth owns the Nokomis project in Minnesota, which contains copper, nickel and platinum group metals.

The TSX Venture Exchange was up 2.08 points to 1,595.29.

New York markets were slightly higher as December retail sales disappointed. The U.S. Commerce Department reported that sales dropped by 0.3 per cent while sales for all of 2009 plunged by a record amount. Economists had expected a 0.5 per cent gain.

The Dow Jones industrial average edged up 29.78 points to 10,710.55.

The Nasdaq composite index rose 8.84 points to 2,316.74, while the S&P 500 was ahead 2.78 points to 1,148.46.

The New York financial sector was positive even as President Barack Obama told banks Thursday they should pay a new tax to recoup the cost of bailing out foundering firms at the height of the financial crisis.

The proposed 0.15 per cent tax on the liabilities of large financial institutions would apply only to those companies with assets of more than US$50 billion — a group estimated at about 50.

In Canadian earnings news, Canwest Global Communications Corp. said Wednesday it earned $652.5 million in its latest quarter, compared with a loss of $36.9 million a year earlier, boosted by the sale of its stake in Ten Network Holdings in Australia. Canwest shares were unchanged at eight cents on the TSX Venture Exchange.

Shaw Communications reported quarterly net income of $114 million, compared to $123 million for the same quarter last year. Its shares were off four cents to $20.66.

The chief executive officer of Shaw Communication Inc. confirmed Thursday that his company has been looking at buying some of Canwest’s assets, although he wouldn’t say what has caught his interest.

Shares in Mega Brands Inc. tumbled 42 cents or 34.71 per cent to 79 cents after the Montreal-based toymaker said it will receive $221 million in new capital from the sale of shares and warrants to current major shareholders and new investors in a move to reduce its debt load.

(The Canadian Press)

North American markets Back to Top
Close Change YTD
Dow Jones 10,710.55 +29.78 or +0.28% +2.71%
S&P 500 1,148.46 +2.78 or +0.24% +2.99%
NASDAQ 2,316.74 +8.84 or +0.38% +2.10%
TSX Composite 11,804.38 -49.18 or -0.41% +0.50%

International markets Back to Top
Close Change YTD
Nikkei 10,907.68 +172.65 or +1.61% +3.43%
Hang Seng 21,716.95 -31.65 or -0.15% -0.71%
SENSEX 17,584.87 +75.07 or +0.43% +0.69%
FTSE 100 5,498.20 +24.72 or +0.45% +1.58%
CAC 40 4,015.77 +14.91 or +0.37% +2.02%
DAX 5,988.88 +25.74 or +0.43% +0.53%

Bonds Back to Top
Bonds $Current $Previous %Yield
Cdn. 10-year bond 101.70 101.23 3.53
Cdn. 30-year bond 115.10 114.15 4.08
U.S. 10-year bond 97.13 96.64 3.73
U.S. 30-year bond 96.06 94.69 4.62

Currency Back to Top
BoC Close Today Previous
Canadian $ 0.9771 0.9703
US $ 1.0234 1.0306

Euro Spot Rate Today Previous
Canadian $ 0.6740 0.6687
Euro 1.4837 1.4954

Commodities Back to Top
Gold AM PM
London Gold Fix ($US) $1,137.50 $1,138.25

Oil Open Change
WTI Crude Future (US) $79.50 -$0.15 or -0.19%


Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.