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Industrials lead rally
May 3, 2010 (Baystreet.ca) --
Canadian stocks are likely poised for a mixed open Monday amid firm commodities prices and China's credit tightening measures.
The S&P/TSX composite index started the week ahead 56.22 points to 12,266.92
Concerns that the $146-billion U.S. bailout package for Greece will fail to stop contagion in Spain and Portugal may also put pressure on the sentiment.
The People's Bank of China said Sunday it was raising its reserve requirement ratio by 50 basis points.
Airlines stocks may be in play after United and Continental Airlines announced $3 billion merger plan to form the world's largest airlines.
In corporate news from Canada, educational and professional publishing company McGraw-Hill Ryerson reported a narrower first quarter net loss of $1.25 per share, compared to a loss of $1.34 per share in the year-ago quarter.
Wallpaper manufacturer Norwall Group posted fourth-quarter net loss of $0.58 per share, wider than $0.40 per share in the prior year period.
Simulation-based services provider CAE Inc. announced the sale of three full-flight simulators valued at a total list price of about $50 million.
Columbia Pacific Advisors, LLC has acquired a total of 781,000 common shares or 10.36% stake of communications services provider TeraGo Inc.
Forestry products company Cathay Forest Products reported fourth quarter net loss of $0.02 per share, compared to a loss of $0.03 per share in the year-ago quarter.
Independent energy development company Excelsior Energy posted fiscal 2009 net loss of $0.01 per share, narrower than $0.03 per share in the year-ago period.
Kent Exploration said Friday it would spin off the Gnaweeda Gold Property from Kent into a separate company, to be named Archean Star Resources Inc.
Goldgroup Mining said that it has completed business combination between Sierra Minerals and Goldgroup Resources and its shares are expected to begin trading on a consolidated basis under the symbol "GGA", after a corresponding adjustment in share price, on or about May 6
Oil and gas company Canadian Phoenix Resources posted a fourth-quarter net loss of $0.12 per share, compared to net loss of $1.17 per share in the same quarter last year.
Oil and gas explorer Alange Energy reported a narrower full-year 2009 net loss of $0.05 per share, compared to a loss of $0.15 per share in the prior year.
Steel fabricating company Empire Industries reported a full-year net loss of $0.17 per share, compared with net loss of $0.02 per share in the prior year.
E-Commerce applications company Fireswirl Technologies reported a narrower full-year 2009 net loss of $1.40 million, compared to a loss of $3.09 million in last year.
Data solutions provider In-Touch Survey Systems reported full-year 2009 net loss of $440,000, compared to a loss of $177,000 in the previous year.
The Canadian dollar trekked upward 0.24 cents to 98.69 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, eight moved north in the first hour of trading. Industrials headed higher 0.9%, while energy and financial stocks tallied 0.7% each.
On the downside, global base metals led the six losing groups, taking a hit of 1.1%, while metals and mining stocks slid 1%, and information technology took off 0.7%.
The TSX Venture Exchange added 6.14 points to 1679.94, while the Nasdaq Canada index inched up 0.02 points to 785.11.
ON WALLSTREET
In New York, stocks opened higher Monday, as investors welcomed a bailout of the Greek economy and awaited a batch of U.S. economic reports.
The Dow Jones industrial average made gains of 65.83 points at the outset to 11,074.44
The S&P 500 index picked up 6.82 points to 1,193.51. The Nasdaq composite index gained 14.79 points to 2,475.98
Stocks tumbled Friday, capping the first weekly decline in eight weeks, after reports that Goldman Sachs is facing a criminal probe sparked analyst downgrades and a selloff in the financial sector.
Worries about Greece's lingering debt problems also weighed on the market last week. But a $146-billion U.S. bailout package announced over the weekend by European officials has tempered concerns about the immediate crisis in Greece.
Experts also said the market is being supported by comments from Warren Buffett indicating that he doesn't think Goldman Sachs acted improperly in the sale of subprime-related securities at the heart of a Securities and Exchange Commission fraud case.
UAL Corp.'s United and Continental announced a $3.2-billion U.S. merger of equals, creating the world's largest airline.
The combined company, which will fly under the United moniker and Continental logo, is expected to have annual revenues of $29 billion U.S.
Economically speaking, a slew of readings are on tap. Before U.S. markets open, a report on personal income and spending in March came out.
Economists surveyed by Briefing.com expect personal income rose 0.3% in March, while personal spending is forecast to have risen 0.6% in the month.
A reading on March construction spending was due out at 10 a.m. ET, as was a survey on nationwide manufacturing activity.
Also on tap is a report on April auto and truck sales for April, which will be released at 2 p.m. ET.
Shares of Goldman Sachs may be on the move after Warren Buffett, whose Berkshire Hathaway owns preferred shares in Goldman, offered a strong defense for the company over the weekend.
Buffett said he didn't believe the investment bank acted improperly with regard to a sale of securities tied to subprime mortgages that has sparked a SEC fraud investigation.
Treasury prices fell, raising the yield on the 10-year note to 3.70% from Friday's 3.66%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gained 31 cents to $86.46 U.S.
Gold prices tacked on seven dollars to $1,188 U.S. an ounce.