All but gold in green
Apr. 29, 2010 (Baystreet.ca) --
Bay Street stocks may recover from a two-day slump Thursday morning amid firm commodities prices and on hopes for a resolution for the Greece debt crisis.
The S&P/TSX composite index gained 90.96 points in the first half-hour of trading to 12,167.85, after two straight days of losses.
A fairly upbeat assessment of the U.S. economy by the Federal Reserve and bargain hunting might also help lift sentiment.
The FOMC, at the end of a two-day policy meeting Wednesday, kept interest rates near zero for an "extended period." The central bank also said the labour market is beginning to improve and noted that housing starts have edged up.
Research In Motion may be in play after Hewlett Packard yesterday announced a $1.2-billion deal to acquire Palm Inc., the ailing company that manufacturers smart phones.
In corporate news, fertilizer maker Potash Corp. reported improved first-quarter earnings of $1.47 per share, compared with $1.01 per share earned in the same period last year. Analysts were expecting the company to record earnings of $1.32 per share for the quarter.
For fiscal 2010, the company revised up its net income guidance to a range of $4.50 - $5.25 per share, from the earlier $4.00 to $5.00 per share.
Gold miner Goldcorp slipped to loss in the first quarter, reporting net loss of $0.07 per share, compared to net income of $0.40 per share in the same quarter last year. Analysts were expecting the company to earn $0.25 U.S. per share for the quarter.
Gold explorer Centerra Gold swung to profit in the first quarter, reporting net earnings of $0.52 per share, compared to a net loss of $0.09 per share in the same quarter last year.
Fuel cell products maker Ballard Power reported narrower first-quarter net loss of $0.12 per share, compared to $0.23 per share in the year ago period.
Integrated oil company Imperial Oil announced improved first-quarter net income of $0.56 a share, compared to $0.33 a share for the same period last year.
Oil and natural gas company Cenovus Energy reported first-quarter net earnings of $0.70 per share, compared to $0.69 in the year-ago quarter. The company has declared a quarterly dividend of $0.20 per share.
Entertainment company IMAX Corp. swung to profit in the first quarter, reporting net earnings of $0.40 per share versus a loss of $0.06 per share last year. Analysts were expecting the company to report $0.37 per share for the quarter.
The Canadian dollar got closer to parity with the greenback, regaining 0.55 cents to 99.72 cents U.S.
ON BAYSTREET
Only gold, of the 14 TSX subgroups, was lower on the day. Gold was 0.1% less bright than yesterday.
The leaders among the 13 gainers were energy, up 1.3%, industrials, surging 1.1%, and financials, gaining 0.6%.
The TSX Venture Exchange picked up 1.76 points to 1,662.11, while the Nasdaq Canada index gained 2.13 points to 794.72
ON WALLSTREET
In New York, stocks opened with a pop Thursday as investors reacted to a surge in Exxon Mobil earnings and easing concerns about the debt problems in Europe.
The Dow Jones industrial average advanced 58.87 points at the outset to 11,104.14.
The S&P 500 index picked up 8.91 points to 1,200.27. The Nasdaq composite index moved up 16.60 points to 2,488.33.
On Wednesday, the blue-chip Dow rose back above 11,000 after the Federal Reserve left interest rates unchanged and said the economy is improving. The central bank's pledge to keep interest rates low helped investors turn their focus away from debt problems in Europe.
Concerns about the fiscal crisis in Greece have abated as European officials appeared to be nearing agreement on a rescue package for the debt-stricken nation, but the situation remained uncertain
Several big corporations reported their quarterly results before the opening bell Thursday.
Exxon Mobil reported a surge in earnings but still missed Wall Street expectations. The oil giant said earnings were $1.33 U.S. per share in the first quarter, which fell short of the $1.41 U.S. per share forecast by a consensus of analyst opinions from Thomson Reuters.
The stock edged down 1%.
Aetna managed to beat expectations when it reported operating earnings of 98 cents per share for the first quarter, compared to 96 cents U.S. in the prior year. Excluding certain charges, EPS was 77 cents U.S., the insurer said. Analysts had forecast EPS of 68 cents U.S.
Procter & Gamble reported a profit for its third quarter that managed to edge above expectations. The company reported earnings of 83 cents U.S. per share, which was slightly lower than its year-earlier EPS of 84 cents U.S. Analysts expected EPS of 82 cents U.S.
Viacom reported a surge in profit for the quarter, with diluted earnings of 40 cents U.S. per share. That was a 38% jump from 29 cents U.S. per share in the year-earlier quarter.
Stocks to watch include Hewlett-Packard, which said Wednesday it will buy smartphone maker Palm for $1.2 billion U.S.
The government released its weekly report on initial claims for unemployment benefits before the opening bell. The number of first-time filers fell 11,000 to 448,000 in the week ended April 24. Analysts expected a drop to 445,000.
Treasury prices were static, keeping the yield on the 10-year note at Wednesday's 3.77%.
The price of a barrel of oil gained $1.66 to $84.88 U.S.
Gold prices faded five dollars to $1,167 U.S. an ounce.
