Jan. 6, 2010 (Baystreet.ca) --
Bay Street may struggle to hold on to its gains on Wednesday as energy prices eased after an uptick in the U.S. dollar. The Canadian market held on to its gains in the previous session, extending the strong rally in the first trading session of the year.
The S&P/TSX Composite Index added 43.61 points to 11,931.69
Tuesday, Toronto stocks turned mildly lower in early dealings after the pending home sales data from the U.S. raised concerns over the health of the economy.
Nonetheless, they had managed to move higher as commodity prices remained firm. The index gained 21.18 points or 0.18% to settle at 11,888.08 -- a new 15-month high.
Energy stocks, which have been moving up nicely in the recent past, may be in play today as the price of crude oil eased a bit, ahead of crude inventory data from the U.S. Energy Information Administration due later today. Meanwhile, gold edged up in price.
In corporate news, technology service provider Calian Technologies announced the award of a $29-million orders by the Department of National Defense.
Information technology provider MacDonald, Dettwiler and Associates said that it has signed a multi-million-dollar contract with Boeing Satellite and Intelligence Systems Inc., a unit of Boeing.
Oil and natural gas explorer Twin Butte Energy Ltd. said that it would be divesting certain non-core assets for $13.3 million. It also revealed a $38-million capital program for 2010.
Energy explorer Niko Resources said it will drill six wells in India this year.
Contract operator Xtreme Coil Drilling Corp. announced it would buy back up to 2.64 million common shares in the next 12 months.
In rating action, JP Morgan upped Bombardier Inc. rating to "overweight" from "neutral" and Barclays hiked the price target of Talisman Energy to $23 from $21.
The Canadian dollar continued its march to parity with its U.S. cousin, regaining 0.35 cents to 96.60 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, all but four were in positive country to begin the day. Metals and mining stocks led the parade by gaining 1.6%, gold advanced 1.2% and materials were 1.1%.
The four laggards were weighed by information technology, off 0.2%, while real-estate and financial stocks suffered 0.1%.
The TSX Venture Exchange advanced 9.82 points to 1,561.50, while the Nasdaq Canada index eased back 2.28 points to 726.53.
ON WALLSTREET
In New York, stocks opened lower Wednesday, as cautious investors showed little reaction to reports on the nation's job picture.
The Dow Jones Industrials started the day off 17.54 points, to 10,554.48. The broader S&P 500 gave up 0.04 points to 1,136.48, and the tech-heavy Nasdaq slid 2.28 points to 2,306.43.
Stocks ended a choppy session little changed Tuesday as investors digested a seesawing dollar and reports including auto sales, pending home sales and factory orders.
Economically speaking, two jobs reports were released before the market opened.
Outplacement firm Challenger, Gray & Christmas reported that 45,094 job cuts were announced in December, 10% less than November's 50,349 job cuts. That's the lowest total since December 2007, when 44,416 cuts were announced.
The ADP private nonfarm employment report for December showed an 84,000 decrease in payrolls. This was the smallest decline in jobs since March, 2008.
But it was steeper than the expected decline of 75,000, according to a consensus forecast from economists surveyed by Briefing.com. In November, there was a 169,000 decrease.
The reports are preliminaries to the most closely watched jobs report, the government's December reading of nonfarm payrolls, scheduled for release on Friday.
After trading began, the Institute for Supply Management was to release a report expected to show an index of services activity rose to 50.5 in December, from 48.7 the previous month, according to a survey of economists by Briefing.com.
A reading above 50 indicates expansion.
The government's weekly crude oil inventories report was due at 10:30 a.m. ET.
Treasury prices fell back, raising yields on the benchmark 10-year note to 3.77% from Tuesday's 3.75%. Prices and yields move in opposite directions.
The price of a barrel of oil was a dime lower at $81.67 U.S.
Gold prices gained $11 to $1,130 an ounce U.S.
