Stocks slump at open

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Commodities weigh on markets Mar. 24, 2010 (Baystreet.ca) -- Bay Street stocks may struggle to extend gains Wednesday amid weak commodities prices and continued negative news flows from the eurozone. The S&P/TSX Composite Index settled 40.22 points soon after the opening bell to 12,004.32. Also, the main index was hovering near its calendar-year high and could attract profit taking at higher levels. Today, Fitch Ratings downgraded Portugal by one notch to AA- and said the country's prospects for recovery were weaker than its peers in the euro zone. The news fueled concerns that debt problems may not be contained to Greece. The euro slipped to a 10-month low versus the dollar, putting pressure on the prices of commodities. In corporate news, oil fields services provider Black Diamond Group reported lower earnings of $4.2 million for the fourth quarter, compared to $5.9 million in the year-ago quarter. Looking ahead, the company expects new project deployments and the expanded fleet and operating platform to be accretive to earnings in the next two quarters. Oil and gas company Twin Butte Energy reported a narrower net loss for the fourth quarter of $0.01 per share, compared to a net loss of $0.09 per share in the year-ago quarter. Oil and natural gas explorer Rock Energy reported fourth-quarter funds from operations of $0.20 per share, compared to $0.21 per share in the previous year. WestFire Energy reported improved net income for the fourth quarter of $0.43 per share, compared to $0.06 per share for the year-ago quarter. Wealth management company AGF Management said its profits more than doubled to $30.6 million in the first quarter from a year ago. Biopharmaceutical company Æterna Zentaris swung to profit in the fourth quarter, reporting net earnings of $0.19 per share versus a loss of $0.27 per share a year ago. Analysts were expecting loss per share of $0.18 for the quarter. Rival Theratechnologies reported a narrower net loss of $0.07 per share in the first quarter, compared to a loss of $0.18 per share in the year-ago quarter. Pharmaceutical company Ondine Biopharma said its fourth-quarter loss narrowed to $0.01 per share from $0.03 in the prior year. Metal parts maker Martinrea International reported adjusted net profit of $0.10 per share for the fourth quarter, compared to an adjusted net loss of $0.02 per share in the year-ago period Manufacturer of heavy duty transit buses New Flyer Industries slipped into the red, reporting a net loss of $30.4 million for fiscal 2009, compared to net earnings of $87.6 million in the year-ago period. Recreation sports company Canlan Ice Sports reported lower net earnings in fiscal 2009 at $0.20 per share compared to $0.29 last year. The Canadian dollar slumped 0.74 cents to 97.70 cents U.S. ON BAYSTREET Of the 14 TSX subgroups, nine were lower in early trading. Gold subsided 1.7%, followed by materials, down 1.2%, metals and mining stocks skidded 0.8%. The five gainers were led by health-care, 0.3% stronger, while telecoms and information technology were 0.2% each to the good. The TSX Venture Exchange lost 5.38 points to 1,555.98. The Nasdaq Canada index backtracked 8.40 points to 800.70. ON WALLSTREET In New York, equities opened lower Wednesday as concerns about European debt resurfaced and investors awaited more information about the housing market. The Dow Jones industrial average subtracted 20.03 points in the session's first half-hour to 10,868.50. The S&P 500 index eased 2.83 points to 1,171.31, while the tech-rich Nasdaq loosed 9.13 points to 2,406.11. In company news, Lennar reported a smaller-than-expected quarterly of four cents U.S. per share, versus a loss of 89 cents U.S. a year ago. The homebuilder said it sees signs the U.S. housing market is moving towards stabilization. General Mills reported adjusted earnings per share of 97 cents U.S. on net sales of $3.6 billion U.S. in its fiscal third quarter. Analysts surveyed by Thomson Financial had expected earnings per share of 85 cents U.S. and sales of $3.5 billion U.S. Economically speaking, the Commerce Department released its report on durable goods orders, showing a gain of 0.5% in February, which was the third consecutive increase and in line with economists' expectations. Durable goods excluding autos rose 0.9%, after falling 1% in January. Economists expected an increase of 0.3%. Due out shortly after the start of trade was February new home sales data from the Census Bureau. Economists surveyed by Briefing.com expect a jump to a 315,000-annualized-unit rate from a 305,000-annualized-unit rate in January. The price of the benchmark 10-year note dropped sharply, lifting yields to 3.77% from Tuesday's 3.68%. Treasury prices and yields move in opposite directions. The price of a barrel of oil fell $1.55 to $80.36 U.S. Gold prices moved up six dollars to $1,106 U.S.

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