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Mar. 26, 2009 (Baystreet.ca) --
10:30 am EST
Stock markets got off to a positive start today as the latest revision of data on the U.S. economic slump wasn't as bad as expected.
The S&P/TSX Composite Index started the day on the right foot, advancing 91.17 points to 8888.61.
Since the rally took hold March 10, the main TSX index is up about 16% while the Dow industrials have risen 18%.
The TSX energy sector rose in early action as EnCana Corp. climbed $1 to $54.12 and Suncor Energy Inc. was up 64 cents to $29.06.
The financial sector moved back a bit, though Manulife Financial was ahead 35 cents to $15.23.
The base metals sector rose as Sherritt International moved ahead 15 cents to $3.07 and Teck Cominco Ltd. advanced 55 cents to $7.75.
Money management firm Sprott Inc. reported fourth-quarter net income of $20.4 million, down from a year-ago $27.6 million as assets under management fell 21% in three months. Its shares fell nine cents to $4.50.
AbitibiBowater Inc. working to avoid bankruptcy, has again extended a deadline to refinance $1.8 billion U.S. of debt held by its Bowater U.S. subsidiary. Its shares added two cents to 70 cents.
The Canadian dollar gained a third of a cent against its U.S. counterpart in the early going to 81.51 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, 10 started the day in positive territory, led by metals and mining, up 2.8%, industrials at 2.5% and energy, up 1.9%.
The three laggards were health-care stocks, down 0.3%, utilities, off 0.2%, and financials, which trailed yesterday's close by 0.1%.
The TSX Venture Exchange increased 9.71 points to 958.75, while the Nasdaq Canada Index picked up 17.25 to 466.53.
ON WALLSTREET
The Dow Jones Industrials average came out of the starting blocks 54.40 points ahead, to 7,804.21. The S&P 500 index gained eight points to 821.90, while the Nasdaq tacked on 27.55 points to 1,556.60.
One analyst says part of Thursday's optimism is fueled by the fact that the S&P has held onto levels at or near the 800 mark.
On the economic front, the U.S. Commerce Department said the economy shrank at a 6.3% annualized pace at the end of 2008.
It was the worst showing in a quarter-century, but markets had been bracing for an even sharper 6.5% decline in the government's final estimate of fourth-quarter gross domestic product.
In other data, the U.S. Labor Department said new claims for unemployment benefits last week rose to a seasonally adjusted 652,000 from the previous week's revised 644,000.
The total number of people claiming benefits jumped to 5.56 million, higher than economists' projections of 5.48 million, and a ninth straight record high.
The figures indicate the American labor market remains weak even as some other economic indicators come in better than expected.
There was some positive U.S. corporate news today.
Best Buy, the world's largest consumer electronics retailer, reported fourth-quarter earnings that were down 23% from a year ago but beat analyst expectations.
Meat processor ConAgra Foods Inc. also posted a sharp drop in profits but topped expectations.
Best Buy shares jumped 12.7% while ConAgra climbed 3%
The May crude contract on the New York Mercantile Exchange gained $1.50 to $54.27 U.S. a barrel.
The April bullion contract on the Nymex rose $7.70 to $943.50 U.S. an ounce.