Stocks mixed at opening

Feb. 3, 2009 (Baystreet.ca) --

10:23 am EST Stocks were mixed Tuesday morning, as investors await more news on earnings and on the economic front.

The S&P TSX Composite Index was down 54.22 points in the early minutes, to register at 8,570.61 Shares in TransCanada Corp. said fourth-quarter profit fell to $277 million from $377 million a year-earlier. It also boosted its dividend six per cent to 38 cents per share. Its shares dipped a penny to $33.38.

Investors are also bracing for gloomy news when automakers release their January vehicle sales and the National Association of Realtors reports on pending home sales in December.

Among financials, Bank of Montreal rose 30 cents to $32.40.

Scotiabank shares were ahead 20 cents to $30 after it said it has nearly doubled its stake in Thailand's eighth-largest bank, buying another 24% for about $270 million. Scotiabank now holds 49% of Thanachart Bank, the regulatory limit for foreign ownership of Thai banks.

There were announcements of more cutbacks in Canada's forestry industry.

Tembec is closing mills – some for two weeks, some indefinitely – in British Columbia, Manitoba and Ontario as pulp and paper market conditions remain soggy. About 1,400 workers will be affected and its shares were unchanged at $1.10.

And Canfor Corp. said Monday it will reduce production by 83 million board feet by taking a two-week curtailment at its British Columbia and Alberta sawmills starting Feb. 9. The company said it will also remove the third shift at its Quesnel, B.C., operation effective Feb. 23, resulting in a further reduction of 100 million board feet on an annualized basis. Canfor shares added a penny to $6.77.

Mega Brands Inc. shares surged eight cents or 20% to 47 cents as it announced a global licensing agreement with Microsoft Game Studios to make construction toys based on the new Halo Wars video game.

The Canadian dollar edged up 0.13 cents to $80.60 cents U.S.

BAYSTREET Of the 13 TSX sub-groups, 10 started the day in negative territory, information technology declining 1.5%, followed by energy, off 1.0% and health-care stocks, down 0.8%. The three groups that were progressing were gold, ahead 1.3%, materials, up 0.8%, and utilities, up only slightly.

The TSX Venture Exchange saw a bit of daylight, 2.6 points worth, to 875.42, while the NASDAQ Canada index was off 10.31 points to 538.49

ON WALLSTREET

The Dow Jones industrials index lost 24.62 points in the first half-hour to 7,912.21. The Standard & Poor's 500 index was off 3.46 points to 821.98. The NASDAQ composite index slid 14.65 points to 1,479.78

Homebuilder D.R. Horton Inc. reported a loss for the most recent quarter that was narrower than analysts anticipated thanks to cost cuts. Results from food processor and ethanol producer Archer Daniels Midland Co. and drug maker Schering Plough also topped estimates.

However, Dow Chemical reported it lost more than $1.5 billion U.S. in the fourth quarter as sales dropped 23% to end one of its worst years on record amid a global slump.

Excluding certain one-time costs, its loss was 62 cents per share – but analysts expected a profit of six cents a share excluding one-time items.

Dow said sales fell to $10.9 billion, far below the $13.3 billion analysts were looking for but its shares added six cents to $11.11.

And telecommunications equipment maker Motorola lost $3.6 billion in the fourth quarter as it took massive non-cash charges for goodwill impairment and an increase in a deferred tax reserve.

Motorola also said it is suspending its dividend after sales tumbled and the company's chief financial officer is leaving.

Sales were down 26% to US$7.1 billion and its shares fell 39 cents to $4.15 U.S.

The March crude contract in New York moved up 43 cents to $40.94 U.S. a barrel.

The April bullion contract in New York moved up $5.70 to $912.90 U.S. an ounce.