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Feb. 26, 2010 (Baystreet.ca) --
Canadian stocks were off a bit in Friday morning trade, with the sentiment likely to improve slightly as traders digest data showing an upward revision to the U.S. economic growth in fourth-quarter, and narrowing of the Canadian current account deficit.
The S&P/TSX composite index shed 12 points to begin the session to 11,619.44.
Gold stocks and financials were the top performers of Thursday. While impressive quarterly profits reported by Canadian Imperial Bank of Commerce and National Bank of Canada lifted the financials sector, gold stocks benefited from an upswing in bullion prices.
On the economic front, Statistics Canada reported the nation's fourth-quarter current account deficit narrowed to $9.8 billion from the revised $13.8 billion for the previous quarter.
In corporate announcements, Gold producer Red Back Mining Inc. reported net income of $109 million for the year ended December 31, 2009. The company reported a 31% increase in gold production during the period, and has projected a 42 - 54% increase in the next fiscal year.
FNX Mining Company Inc. reported a turnaround to profit in the fourth-quarter 2009, with net earnings of $32.12 million compared to a loss of $397.40 million in the corresponding period last year.
Mineral explorer Centamin Egypt Ltd. reported Friday its loss narrowed to $542,000 U.S. in the half-year ended December 31, 2009, from $24.43 million U.S. in the comparable period.
Packaging products company Cascades Inc. reported its fourth-quarter net loss widened to $41 million from $18 million in the prior-year quarter.
Prestige Telecom Inc. said its third-quarter net loss narrowed to $600,000 from $1.9 million for the year-ago quarter, aided by a 92% growth in sales.
Mobile personalization company Bridgewater Systems reported an increase in its full-year net earnings to $11.2 million from $2.8 million in 2008.
The Canadian dollar gained 0.13 cents to 94.46 cents U.S.
ON BAYSTREET
Nine of the 14 TSX subgroups were lower to begin the day. Global base metals were down 0.8%, followed by gold and industrials, trailing 0.3% each.
Gainers were led by metals and mining and real-estate stocks, progressing 0.5% each and utilities, up 0.4%.
The TSX Venture Exchange picked up 2.26 points to 1,520.20, while the Nasdaq Canada index slipped 1.39 points to 743.76.
ON WALLSTREET
In New York, stocks were headed for a lower open Friday after a dismal report from AIG dashed hopes for an opening advance. A stronger-than-originally-reported GDP report failed to boost sentiment.
The Dow Jones industrial average gave back 4.53 points at the outset to 10,316.50. The S&P 500 index stumbled 0.14 points to 1,102.80, and the Nasdaq composite subtracted 3.13 points to 2,231.09.
Wall Street ended Thursday's session lower, amid worries about the debt crisis in Greece and weaker-than-expected economic reports. But sentiment improved in the final hour of trading and stocks pared losses.
Some of the positive sentiment carried over in pre-market trading on Friday, before AIG knocked the wind out of investor confidence.
AIG reported a worse-than-expected $9-billion U.S. loss Friday, partly from the sale of certain divisions of the company to pay off its government debt. This followed two positive quarters.
The stock declined in pre-market trading.
Before AIG came out, one expert said investors were focusing on positive signs from Greece and India, with leaders in those countries making reassuring statements regarding their national economies.
Optimistic forward-looking comments from the Indian finance minister were sparking a rally in emerging markets, he added.
On the economic front, the government released a revision of fourth-quarter gross domestic product, which was slightly higher than expected, with an annual rate of 5.9%.
But this failed to inspire investors. Futures had recovered somewhat from the AIG-related fallout, but slipped again after the GDP report.
A consensus of economists surveyed by Briefing.com had expected growth at an annual rate of 5.7%, unchanged from the first reading last month. This is compared to an increase of 2.2% in the third quarter.
After the opening bell, the Chicago purchasing managers' index is expected to slip to 59.7 for February, down from 61.5 the prior month but still indicating expansion in the region's manufacturing sector.
The National Association of Realtors is expected to announce that existing home sales, probably the most important report for Friday, is expected to come in at an annual rate of 5.5 million units for January, according to the Briefing.com consensus. This would be up slightly from 5.45 million the prior month.
Treasury prices moved up, lowering the yield on the 10-year note to 3.62% from 3.63% late Thursday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil regained 59 cents to $78.76 U.S.
Gold prices jumped two dollars to $1,108 U.S.