Markets positive at midday

Feb. 4, 2009 (Baystreet.ca) --

12:22 pm EST The Toronto stock market ran ahead more than 150 points late in the morning in a broad-based advance led by commodity and financial stocks.

The S&P TSX Composite Index remained ahead 109.85 points by lunch time, to 8,738.48

The market has been trading in a range between roughly 8,200 and 8,900 since mid-January and some analysts were hard put to explain the sharp rise.

The TSX energy sector maintained a 2% rise even as U.S. crude inventories jumped a much more than expected 7.2 million barrels last week as overall demand for motor fuel continued to slide.

Suncor Inc. gained $1.22 to $24.75 and EnCana Corp. advanced 68 cents to $54.88.

The gold sector leapt 2%, as Goldcorp Inc. rose $1.37 to $36.17 and Barrick Gold Corp. gained $1.60 to $45.72.

The base metals sector climbed as the price of copper rose two cents to $1.55 U.S. a pound. Teck Cominco Ltd. advanced 34 cents to $4.86 and First Quantum Minerals ran up $2.95 to $26.75.

Shares in HudBay Minerals Inc. were six cents lower at $4.69 after the company said that the unions at its operations in Flin Flon and Snow Lake, Man., have voted to ratify new three-year collective agreements effective Jan. 1, 2009.

The financial sector moved ahead 1% with Royal Bank up 56 cents to $31.41 while National Bank was ahead $1.07 to $35.45.

The Dutch parent company of ING Canada Inc. is selling a $2-billion stake in the Canadian subsidiary. The sale will not affect ING Group's current ownership of ING Bank of Canada, known as ING Direct, which is a separate and distinct company from ING Canada. ING Canada shares tumbled $4.11 or 12% to $29.68.

Shares in Research In Motion improved $1.56 to $69.83 after top executives reached a deal to settle a dispute with the Ontario Securities Commission over the company's past stock option practices.

The OSC will hold a hearing Thursday to consider the settlement that includes co-chief executives Jim Balsillie and Mike Lazaridis and several other executives and directors. The OSC has accused several individuals, including Balsillie and Lazaridis, of receiving back-dated stock options.

Maple Leaf Foods Inc. shares were unchanged at $10.66 after it said Tuesday that it plans to restate and refile its 2007 consolidated annual financial statements to lower its earnings due to an understatement of future tax costs related to the sale of its animal nutrition business.

The company said it will report earnings for the year ended Dec. 31, 2007 of $194.9 million or $1.50 per diluted share, down from previously reported earnings of $207.1 million or $1.59 per diluted share.

Railpower Technologies Corp., Quebec-based maker of eco-friendly locomotives, says it is seeking court protection under the Companies' Creditors Arrangement Act. Its U.S. subsidiary, Railpower Hybrid Technologies Corp., is also seeking creditor protection. Its shares plunged 3.5 cents to 4.5 cents.

The Canadian dollar climbed 0.30 cents to $81.48 cents U.S.

BAYSTREET All but one of the 13 TSX sub-groups were in positive country, metals and mining the champion, up 5.5%, materials were next at 3.3% and industrials were up 3.1%.

Only a 0.5% loss by consumer staples spoiled the party.

The TSX Venture Exchange was 14.99 points stronger, to 884.24, while the NASDAQ Canada index was 10.94 points ahead, at 558.39

ON WALLSTREET

The Dow Jones industrials index climbed 22.06 points to 8,100.42. The Standard & Poor's 500 index increased 7.91 points to 846.42. The NASDAQ composite index picked up 25.26 points to 1,541.56

The Walt Disney Co. reported a 32% decline in quarterly profits amid a downturn that chief executive Robert Iger called ``likely to be the weakest economy in our lifetime."

Iger also suggested that a broad-based decline of the DVD business was occurring as consumers shifted viewing habits onto the Internet and other formats and Disney shares fell $1.04 to $19.58 U.S. Costco Wholesale Corp. said its profit for the quarter ending in February will "substantially" miss Wall Street estimates due to poor sales and margins.

It also said it will not provide earnings guidance for the rest of the fiscal year and its shares fell $3.76 to $42.36 U.S.

Kraft Foods shares lost $2.26 to $26.48 U.S. after it said fourth-quarter profit fell 72% due to costs related to a restructuring program.

The maker of Velveeta, Oreo cookies and Maxwell House coffee cut 2009 guidance to $1.88 per share from $2 per share. Analysts expect a profit of $2.02 per share.

Economically speaking, two days before the release of January employment data, the latest ADP Employment Report in the U.S. showed that 522,000 jobs were lost in January. That is in line with consensus forecasts.

Treasury prices inched higher, lowering the yield on the benchmark 10-year note to 2.87% from 2.88% Tuesday. Treasury prices and yields move in opposite directions.

The March crude contract in New York was ahead 58 cents to $41.36 U.S. a barrel.

The April bullion contract on the Nymex moved up $13.50 to $906 U.S.