Jan. 12, 2010 (Baystreet.ca) --
Bay Street endured a slack opening Tuesday, as traders locked in their profits, capitalizing the recent run-up. Canadian stocks have been moving higher in 2010, since gathering a triple-digit gain in the first session of the year.
The S&P/TSX Composite Index tumbled 80.12 soon after the opening bell to 11,867.01.
The main index had added nearly 2% since the New Year, falling only on two of the six trading sessions. Yesterday, the index rallied past the 12,000 mark for the first time since September 2008, only to end flat on profit taking. The index closed the previous session at 11,947.13, trimming 6.7 points.
A fall in the prices of oil and commodities may weigh on the resource-heavy Bay Street.
In corporate news, discount retailer Dollarama Inc. said some of its shareholders, including Bain Capital LLC, will be divesting nearly 12 million shares at $21.50 to a group of banks.
Emulex Corp. posted second-quarter preliminary non-GAAP earnings per share of $0.16 - $0.17 exceeding the high end of guidance of $0.10 - $0.12.
Matrikon Inc. announced a flat first-quarter earnings of $0.09 per share. Similarly, Velan Inc. posted third quarter earnings of $0.34 per share, compared to $0.34 per share in the prior-year quarter.
Forestry plantation operator Sino-Forest Corp. said its wholly-owned subsidiaries acquired China-based engineered wood product maker, Homix Limited, for $7.1 million.
Four companies lining up to take a potential stake in struggling entertainment company CanWest Global Communication face roadblocks to reaching a deal, the Globe and Mail reported Tuesday.
Satellite component maker COM DEV International reported a dip in its fourth-uarter earnings at $0.01 per share, compared to $0.07 per share in the year-ago quarter.
American Creek Resources announced that it had appointed Robert Edwards as Chief Financial Officer effective January 1, 2010.
In economics news, Statistics Canada said today that the country's merchandise exports jumped 1.1%, while imports rose 3.9% in November. This had pushed the nation's deficit to $344 million in November from a surplus of $503 in the earlier month. In another report, it said home prices rose 0.4% in November, indicating growth in the housing market.
The Canadian dollar gave back 0.57 cents to 96.17 cents U.S.
ON BAYSTREET
All but one of the 14 TSX subgroups were lower. Global base metals fell 2.4%, followed by metals and mining, down 2.1% and materials surrendered 1.5%.
Only a 0.01% hike by real-estate kept things from being unanimous.
The TSX Venture Exchange fell 17.64 to 1,590.89, while the Nasdaq Canada slid 10.50 points to 712.47
ON WALLSTREET
In New York, tocks tumbled Tuesday morning, as Alcoa's weaker-than-expected profit report and Chevron's profit warning unnerved investors at the start of the fourth-quarter reporting period.
The Dow Jones Industrials lost 21.99 points soon after the opening to 10,624. The S&P 500 subtracted six points to 1,141, and the Nasdaq took off 16 points to 2,297.
Stocks churned Monday as investors eyed a weak dollar, higher commodity prices and falling tech shares ahead of Alcoa
After the close, the Dow component reported a profit of one cent per share, versus a loss of 28 cents U.S. per share a year ago. Analysts expected the company to have earned six cents U.S. a share, according to earnings tracker Thomson Reuters. Revenue fell less than expected.
KB Home reported a quarterly profit for the first time in two years, thanks to a tax benefit. However, the homebuilder's revenue dropped from a year ago.
Dow component Chevron warned late Monday that sharply lower fourth-quarter refining earnings would drag down its fourth-quarter results. Margins have been pressured because the rising price of oil is not in sync with the weaker demand globally, due to the economic slowdown.
The November trade deficit, released in the morning, widened to $36.4 billion from a revised $33.2 billion in October. The deficit was expected to widen to $34.5 billion, according to a consensus of economists surveyed by Briefing.com.
The Federal Reserve made record profits in 2009, returning about $45 billion to the U.S. Treasury.
Treasury prices rose, lowering the yield on the 10-year note to 3.74% from Monday's 3.83%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil dropped 92 cents to $81.60 U.S.
Gold prices slid two dollars to $1,149 U.S.
