Commodity prices lift markets
Apr. 30, 2010 (Baystreet.ca) --
Bay Street stocks held onto recent gains Friday morning amid firm commodities prices and on increasing hopes for a quicker resolution for the Greece debt crisis.
The S&P/TSX composite index leaped 61.33 points at the outset to 12,261.65
Just released GDP data from the U.S. and Canada confirmed that economies on both sides of the border continue to rebound, albeit at a slower pace than previous readings.
However, profit taking at higher levels may cap gains, as the main index was near its 18-month high
In corporate news, gold producer Agnico-Eagle Mines reported lower first quarter net income of $0.14 per share, compared to $0.35 per share in the same quarter last year. Analysts were expecting the company to post net income of $0.29 per share in the quarter.
The company attributed the reduction in income to a non-cash foreign currency translation loss of $0.06 per share, and a non-cash stock-based compensation expense of $0.11 per share in the quarter.
Mining company Boliden AB said it has acquired Kemira's sulphuric acid plant and business in Kokkola, Finland, effective May 1.
Property and casualty insurance company Fairfax Financial Holdings swung to profit in the first quarter, reporting net income of $14.02 per share, compared to a loss of $3.55 per share in the same quarter last year.
Enterprise content management solutions provider Open Text reported lower third-quarter net income of $0.23 per share, compared to $0.41 per share in the year ago period. Analysts were expecting the company to record $0.74 per share for the quarter.
Paper manufacturer Domtar Corp. swung to profit in first quarter, reporting net earnings of $1.34 per share, compared to a net loss of $1.05 per share last year.
Logistic business solutions provider Canadian Utilities reported first-quarter earnings of $1.18 per share compared to $1.16 per share for the quarter in 2009.
Distribution utility company Fortis Inc. said its first-quarter net earnings increased to $0.56 per common share from $0.52 per common share in the prior-year quarter.
In addition, the company said that the corporation's significant capital program, which is expected to be about $1.1 billion in 2010 and approach $5 billion over the five-year period from 2010 through 2014, should drive growth in earnings and dividends.
Media and entertainment company Corus Entertainment said it would sell the Corus Quebec radio stations to COGECO Inc., a telecommunication services providing company, in a transaction valued around $80 million.
In economic news, Statistics Canada said the country's real gross domestic product increased 0.3% in February, largely helped by growth in manufacturing and mining. The manufacturing sector grew 1.2% and the mining sector increased 0.4% in February.
In another report, the agency said the Industrial Product Price Index (IPPI) declined 0.4% and the Raw Materials Price Index rose 0.8% in March The IPPI declined in March after advancing in the past four months. The agency noted that the 3.3% gain in the value of the Canadian dollar versus the U.S. dollar had impacted the IPPI.
The Canadian dollar fell back 0.43 cents to 99.02 cents U.S.
ON BAYSTREET
All but four of the 14 TSX subgroups were higher in the first hour. Gold shot up 2.2%, materials improved 1.8% and health-care issues gained 1.7%.
Of the four laggards, information technology stocks were the worst off, sliding 1.8%, while global base metals tailed off 0.4% and telecoms lost 0.3%.
The TSX Venture Exchange added 10.92 points to 1,670.89, while the Nasdaq Canada index backtracked 1.25 points to 796.37
ON WALLSTREET
In New York, the Dow Jones industrial average took back gains Friday after the government said the economy grew in the first quarter, but at a slower pace than expected. The broader market churned after reports said Goldman Sachs is facing a criminal probe.
The Dow Jones industrial average fell 37.11 points to begin the day at 11,130.21
The S&P 500 index slipped 6.65 points to 1,200.13. The Nasdaq composite index gave back 13.70 points to 2,498.22.
U.S. stocks rallied Thursday after a slew of strong earnings reports. The blue-chip Dow gained 122 points, or 1.1%. The S&P 500 and Nasdaq also both gained more than 1%.
Economically speaking, U.S. gross domestic product, the broadest measure of economic activity, rose at a 3.2% annual rate in the first quarter, the Commerce Department said.
It was the third consecutive quarter of economic growth, but the pace was slower than the 5.6% growth rate in the fourth quarter.
Economists surveyed by Briefing.com had expected a 3.3% rate.
A survey on business conditions in Chicago and its surrounding areas was due to be released after the open, as is the University of Michigan's consumer sentiment index.
Stocks to watch include Goldman Sachs, which reportedly is the target of a criminal investigation by federal prosecutors. Shares fell 4.5% in morning trading.
Continental and UAL Corp.'s United Airlines are also in focus after the Wall Street Journal reported that the two are close to a merger deal. Continental shares rose 3% and UAL shares rose 5% in morning trading.
Treasury prices gained on the day, lowering the yield on the 10-year note to 3.72% from Thursday's 3.73%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gained 17 cents to $85.34 U.S.
Gold prices tacked on $11 to $1,180 U.S. an ounce.
