Metals, health-care lead TSX
Apr. 26, 2010 (Baystreet.ca) --
Canadian stocks are holding on to moderate gains in early afternoon trading Monday, with base metal and healthcare stocks leading the pack of gainers while technology shares lagged. The S&P/TSX Composite Index tacked on 26.67 points by shortly after noon to 12,266.31. The Diversified Metals and Mining Index added strength with Thompson Creek Metals rising 4.37% and Inmet Mining up 1.63%. Energy stocks were mixed as oil prices fluctuated. Crew Energy gained 3.27% and Encana added 0.46%, while Nexen lost 1.42%. Shares of BlackBerry maker Research In Motion eased 2.54%, dragging the IT sector down. The Canadian dollar slid 0.12 cents to just below parity with the American dollar, at 99.95 cents. ON BAYSTREET Of the 14 TSX subgroups, all but three were higher to begin the week. Global base metals led the charge, up 1%, followed by health-care issues, advancing 0.9% and metals and mining picked up 0.8%. The three laggards were information technology, giving back 1.7%, consumer staples, down 0.5%, and utilities, off 0.1%. The TSX Venture Exchange accumulated 1.24 points to 1672/16, while the Nasdaq Canada index was off 12.16 points to 777.91 ON WALLSTREET In New York, Caterpillar's strong earnings lifted the Dow Monday, but the broader market seesawed at the start of a busy week filled with corporate results, economic reports and the Federal Reserve meeting. The Dow Jones industrial average gained 30 points by midday to 11,234.28. The S&P 500 index faded one point, to 1,216.28. The Nasdaq composite index trailed Friday's close by 0.84 points, at 2,529.31. Stocks gained Friday after a surprisingly strong new-home sales report, with the Dow, Nasdaq and S&P 500 all gaining on the week as well. The Dow has now gained eight weeks in a row, the longest win streak since January 2004. Although there are no economic reports due Monday, the pace picks up later in the week. The Fed's two-day policy meeting concludes Wednesday, with a statement due in the afternoon, while reports on jobless claims, consumer confidence and gross domestic product are also on tap. While the trend for the market remains up, there are still headwinds, including any fallout from Goldman Sachs' fraud charge, the debate over financial reform and Greece's lingering debt issues. Heavy-machinery maker Caterpillar reported higher quarterly earnings that beat estimates on weaker revenue that missed estimates. The company said that the economic outlook is improving, but that it is cutting its outlook for housing starts by 20% due to the weak labour market. The Dow component also boosted its 2010 profit forecast. Shares gained 5%. Whirlpool reported higher quarterly sales and earnings that beat estimates due to stronger sales of its appliances both domestically and abroad. The company also reported a stronger 2008 profit. Shares gained 14%. With roughly 34% of the S&P 500 having reported results, earnings are currently on tack to have risen 50% from a year ago, while revenues are on track to have risen 11%, according to tracker Thomson Reuters. So far, about 83% of earnings and 81% of revenue have topped estimates. Hertz said it will buy Dollar Thrifty in a $1.2-billion U.S. cash-and-stock deal that combines the two car rental companies. Treasury prices gained ground, dropping the yield on the 10-year note to 3.80% from Friday's 3.82%. Treasury prices and yields move in opposite directions. The price of a barrel of oil slipped 86 cents at $84.26 U.S. Gold prices nipped ahead a dollar to $1,155 U.S. an ounce.
