Feb. 5, 2009 (Baystreet.ca) --
12:25 pm EST
The buyers returned to the markets by midday Thursday, after a first hour or two in the dungeons, vaulting stocks to positive territory in both Toronto and New York.
The S&P TSX Composite Index was ahead 92.11 points by the noon hour, to 8,785.2, as investors bought up mining stocks and early losses in the financial sector disappeared.
New York markets shook off steep early losses as investors coped with disappointing news from technology giant Cisco Systems, soft U.S. retail sales and a further indication of big American job losses.
Bombardier shares were 12 cents lower to $3.69 after the company said it is cutting 1,360 jobs, or about 4.5% of its workforce, because of falling production of Learjet and Challenger executive jets. The Montreal-based company says it expects more challenges throughout 2009.
Barrick Gold Corp. ran ahead $1.10 to $46.83.
The base metals sector gained as Teck Cominco Ltd. climbed eight cents to $4.78.
The TSX energy sector was off as oil prices eased. Husky Energy Inc. shares were down 95 cents to $28.98 after a sharp drop in earnings and a dividend cut. Husky earned $232 million in the final three months of 2008, down from $1.1 billion a year earlier.
Oilexco Inc. plunged 4.5 cents to 15 cents after lenders demanded immediate repayment of a $547.5-million U.S. credit facility and a 100-million-pound credit line at insolvent Oilexco North Sea Ltd.
The consumer staples sector moved ahead, as shares in Saputo Inc. jumped $2.05 to $20.80. The cheese giant's stock had fallen 4% Wednesday after quarterly profit fell nearly 30% despite a 19% sales increase.
Shares in Certicom Corp. were ahead five cents to $3.21 after it said BlackBerry maker Research In Motion Ltd. is leading the bidding war for the encryption technology company. RIM's offer of $3 per share is “superior” to a bid of $2.10 per share from California-based VeriSign Inc.
RIM shares were off a dime at $69 as its top executives, Jim Balsillie and Mike Lazaridis, appeared before the Ontario Securities Commission on a proposed settlement over backdating of stock options.
Utility operator Fortis Inc. says fourth-quarter profits slipped to $76 million from $79 million in line with analyst expectations. Quarterly revenue rose to $1.2 billion from $1 billion. Its shares were up 14 cents at $23.68.
Forestry company Domtar Corp. reported a fourth-quarter loss of $676 million U.S. or $1.31 per share, reversing year-earlier profits of $43 million and its shares fell 11 cents to $1.49.
On the economic front, Canada's 2009 budget will generate stimulus of $32 billion over two years for the world's eighth-largest economy, about one-fifth less than the level estimated by the government, the head of Parliament's budget office said today. Kevin Page told lawmakers the Canadian government's estimate of a $40 billion stimulus from its budget over the next two years is a “maximum or gross” projection.
The Canadian dollar advanced 0.16 cents to $81.32 cents U.S.
BAYSTREET
Of the 13 TSX sub-groups, nine had recovered from the morning doldrums and were pointing upward by lunch, led by metals and mining, up 3.5%, materials, ahead 2.3% and gold, up 1.8%.
The four losing groups were led by telecoms, off 0.5%, energy, down 0.3%, and health-care, about 0.1% less healthy.
The TSX Venture Exchange was up 2.26 points to 894.33, while the NASDAQ Canada index was 0.77 points behind, at 542.17
ON WALLSTREET
The Dow Jones industrials index had sprinted by midday, 103.14 points to 8,059.80 The Standard & Poor's 500 index gained 13.36 points to 845.59. The NASDAQ composite index recovered 28.17 points to 1,543.22.
On the economic front, weekly jobless claims rose 35,000 to 626,000, hitting the highest level in 26 years. The figure was worse than what economists were expecting, according to a Briefing.com survey.
Cisco shares turned around an early loss to add one cent to $15.85 U.S. as the company beat market profit expectations by two cents per share even as earnings dropped 27% from a year ago. But the tech bellwether said orders declined dramatically in January.
Shoppers grappling with layoffs and shrinking investments dug deep into survival mode last month, causing sharp January sales declines for many U.S. retailers.
Wet Seal, Stage Stores and Children's Place were among those with steeper-than-expected sales declines. But Wal-Mart kept beating Wall Street forecasts and its shares rose $2.11 to $48.53 U.S.
Sales at rival Target fell 3.3% in January, although the results were much better than analysts had feared. Warehouse club operator Costco said its monthly sales fell 2%.
Fast food restaurant operator Burger King said its net income declined 10% from a year earlier, while the company revised lower its outlook for 2009.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.86% from 2.94% Wednesday. Treasury prices and yields move in opposite directions.
The March crude contract on the New York Mercantile Exchange slipped 30 cents to $40.02 U.S a barrel.
April bullion contract on the Nymex climbed $15.20 to $917.40 U.S. an ounce