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Jan. 15, 2010 (Baystreet.ca) --
Canadian stocks continued to linger in the red in early morning deals Friday, amid widespread selling. Losses were more pronounced among gold and material stocks on falling commodity prices.
The S&P/TSX Composite Index jettisoned 113.04 points, or 1%, by noon to 11,691.34. Gold stocks continued to drift along with the price of bullion, which lost ground.
Kinross Gold shed 4.34% to $19.84 after UBS trimmed its price target on the stock to $25 from $26. The company said its 2009 full-year production is expected to be about 2.23 million gold equivalent ounces, an increase of around 21% over 2008 production. Looking ahead for 2010, it expects full year production to be approximately 2.2 million gold equivalent ounces.
Gold explorer Pacific Rim Mining dwindled 12.24% after announcing that it has closed its $2.355 million private placement financing.
Energy stocks pulled back from early morning gains. Encana Corp. lost 1.09% and Canadian Natural Resources slipped 0.89%.
Oil and gas producer Anderson Energy gave in 7.64% after announcing plans to sell at least 19.2 million shares at $1.45 a share to part finance its debt repayment and expansion.
Mineral explorer Ivanhoe Mines lost 2.23% even after denying a Dow Jones news service report that it chairman is selling his stake in the company.
On the other hand, oil field services provider Pure Energy Services rose 0.83% after announcing that its Board of Directors has approved an initial capital expenditure budget for 2010 of about $6 million.
Potash Corp edged down 0.18%. RBC hiked the price target on the stock to $150 from $125.
Agrium Inc. surrendered 4.10% on reports the company will intensify its efforts to acquire CF Industries Holdings.
Research In Motion eased 0.48%. Eastman Kodak filed complaint with the U.S. International Trader Commission claiming Apple and Research In Motion are infringing a patent related to ways to preview images.
Pinetree Capital eased 0.90% after it said it upped its stake in Silver Spruce Resources Inc to 15.6% by acquiring four million common shares and four million common share purchase warrants.
Health-care provider DiagnoCure Inc. moved down 6.72% after reporting that its fourth-quarter net loss narrowed to $0.07 per share from $0.09 per share last year.
Sporting goods retailer Forzani Group edged down 0.68% after it said sales dropped 1.8% in the key holiday season.
In economic news, Statistics Canada said today New Motor Vehicle sales dipped 6% to 124,764 units in November, after moving up for the past four months.
The Canadian dollar faded 0.54 cents to 97.17 cents U.S.
ON BAYSTREET
All but one of the 14 TSX subgroups were lower by midday, weighed mostly by gold stocks, off 1.9%, global base metals, sliding 1.6% and material stocks, losing 1.4%.
The one gainer was in the utilities group, nosing ahead 0.2%.
The TSX Venture Exchange stumbled 11.14 points to 1,584.15, while the Nasdaq Canada index subtracted 7.07 points to 731.28.
ON WALLSTREET
In New York, bank stocks led a broader selloff Friday morning as investors dumped shares of JPMorgan Chase and Intel despite better-than-expected earnings reports from both companies.
The Dow Jones Industrials fell 115.48 points, or 1.1%, by noon to 10,691.34. The S&P 500 took off 12.81 points to 1.135.65, and the Nasdaq retreated 29.37 points to 2,287.37.
A mild reading on inflation, a mostly in-line reading on manufacturing and a better-than-expected report on consumer sentiment were also in the mix.
Stocks managed gains Thursday, with the Dow and the S&P 500 closing at the highest point since Oct. 1, 2008 and the Nasdaq ending at the highest point since Sept. 3, 2008.
But gains so far this year have been slow, following last year's massive runup. Stocks are likely to drift as investors wait for more fourth-quarter profit and economic reports.
Financial services firm JPMorgan Chase reported earnings per share of 75 cents U.S., which is better than the 61 cents U.S. expected by analysts, according to a consensus from Thomson Reuters. Revenue of $26.8 billion U.S. was also better than the expected $26 billion U.S.
After U.S. markets closed Thursday, Intel issued upbeat quarterly financial results. The chipmaker's earnings and sales topped Wall Street's estimates.
On the economic front, the Consumer Price Index, a key inflation reading, showed a less-than-expected increase of 0.1% for December. Economists surveyed by Briefing.com expected an increase of 0.2%, compared to a rise of 0.4% the prior month.
The core CPI for December also rose 0.1%.
A report on industrial production and capacity is also due out Friday, as is the University of Michigan's report on consumer sentiment.
Treasury prices spiked, lowering the yield on the 10-year note to 3.67% from Thursday's 3.73%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil lost 88 cents to $78.51 U.S.
Gold prices lost $12 to $1,132 U.S.