Jan. 28, 2010 (Baystreet.ca) --
Canadian stocks went emphatically south Thursday as commodity prices trimmed recent losses.
Stocks have been struggling to sustain any direction, with the main index closing flat in the past three sessions.
As noon approached, the S&P/TSX Composite Index had forfeited 156.80 points, or 1.4%, to 11,187.31
Lackluster earnings results from Potash Corp. and Canadian Pacific Railways may weigh on investors' sentiment.
Energy stocks may be in play after an industry group predicted that oil and natural gas drillers in Canada will be busier this year. The Petroleum Services Association of Canada hiked its own growth expectations by 12% and said it expects that 9,000 wells will be drilled in 2010.
In corporate news, Potash Corp. reported a huge dip in its fourth-quarter net income to $0.80 per share, compared to net income of $2.56 per share in the same quarter last year. It guides net income for the first quarter in the range of $0.70 - $1.00 per share. For the full year 2010, the company expects net income in the range of $4.00 - $5.00 per share.
Toronto Dominion Bank said its UK unit TD Waterhouse will acquire UK Customer base of E*Trade, which would help increase the customer base by 24,000.
Canadian Natural Resources said it along with North West Upgrading has submitted a joint proposal to the Alberta Government to construct and operate a bitumen refinery near Redwater, Alberta.
Bombardier Inc. plans to invest in train projects in Brazil and will reactivate and expand a plant in Hortolandia, according to Brasil Economico newspaper.
Canadian Pacific Railway said its fourth-quarter net income increased to $194.1 million from $188.1 million last year. However, earnings per share declined to $1.15 from $1.21 a year ago.
Athabasca Potash and BHP Billiton Canada Inc. announced that they have entered into a definitive agreement whereby BHP Billiton will offer to acquire all of the issued and outstanding common shares of API at a price of $8.35 cash per common share.
Contract electronic manufacturer Celestica reported fourth quarter net income of $0.21 per share and guides it first quarter net income of $0.15 to $0.21.
Merchant banker Bancorp said it continues to be actively engaged in strategic review process and advised its shareholders not to tender to Maxam offer.
Gold miner New Gold announced the signing of an agreement to sell its Brazilian subsidiary Mineracao Pedra Branca do Amapari Ltda., which holds the Amapari mine and other related assets, to Beadell Resources Ltd. for $63 million.
Exco Technologies reported first quarter net income of $0.05 per share, compared to a loss of $0.06 per share in the previous year.
Methanol producer Methanex Corp. reported fourth quarter net income of $0.28 per share, compared to a loss of $0.04 per share last year.
Cleanfield Alternative Energy reported second quarter net loss of $0.01 per share, compared to a net loss of $0.04 per share in the year-ago quarter.
The Canadian dollar jumped 0.21 cents to 94.16 cents U.S.
ON BAYSTREET
All 14 TSX subgroups were lower by lunch-hour. Materials weighed things down by losing 2.3%, global base metals were off 2.2%, and health-care stocks were 2.1% sicker.
The TSX Venture Exchange stumbled 11.01 points to 1,498.37, while the Nasdaq Canada index slid 0.43 points to 697.84.
ON WALLSTREET
In New York, a stock selloff gained speed Thursday as investors dumped technology and other large cap stocks amid weaker economic reports, a stronger dollar and continued jitters in the aftermath of last week's selloff.
The Dow Jones Industrials staggered 163.84 points, or 1.6%, by noon to 10,072.32. The S&P 500 faded 17.75 points to 1.079.75, and the Nasdaq chucked 51.89 points, to 2,169.52.
The market wariness overshadowed Ford Motor's first profit in four years and President Obama's announcement of a push for jobs.
U.S. stocks rose Wednesday after the Fed's policy statement triggered a late-day advance. The Dow added 0.4%, the S&P 500 gained 0.5% and the Nasdaq added 0.8%.
But investors are still showing signs of nervousness and will continue to do so until they witness proof that the economy is truly recovering,
Obama said in his State of the Union address Wednesday that jobs were his administration's "number-one focus in 2010." The president's plan to spur job growth will revolve around tax incentives for small businesses.
Before the opening bell, the U.S. government released reports about the job market and durable goods orders.
The Labor Department released its weekly report on initial jobless claims before the open. The number of people filing for unemployment benefits for the first time totaled 470,000, a decline of 8,000 from the prior week's revised tally.
This was higher than expected. Claims were expected to have totaled 450,000 in the week ended Jan. 23, according to a consensus of economist opinion from Briefing.com.
The government also released its monthly report on orders for durable goods, a measure of manufacturing. Durable orders rose 0.3% in December, which was much less than expected. Durable orders were expected to have risen 2% in December, according to Briefing.com consensus.
Ford reported its first full-year profit in four years, with net income of $2.7 billion U.S. The automaker said it expects another full-year profit in 2010. The stock rose about 4% in pre-market trading.
Also on Thursday, conglomerate 3M raised earnings expectations for 2010, to a range of $4.90 to $5.10 U.S. per share, after beating expectations with its fourth-quarter profit of $1.30 U.S. per share.
Telecom company AT&T grew its fourth-quarter earnings to 51 cents U.S. per share, matching expectations. Consumer goods company Procter & Gamble beat expectations for its most recent quarter with earnings of $1.49 U.S. per share.
Apple unveiled its highly anticipated iPad on Wednesday. The unveiling of the tablet computer sent shares of the company on a rollercoaster ride. Apple shares finished Wednesday's session nearly 1% higher, but they've backed off slightly in pre-market trading.
The Fed's outlook for the economy is also likely to help keep investors upbeat. The Fed held rates steady Wednesday and said the economic recovery was gaining strength.
A Senate vote on the confirmation of Fed chief Ben Bernanke is scheduled for Thursday.
Uncertainty surrounding Bernanke's confirmation has hung over investors lately.
Treasury prices dipped, raising the yield on the 10-year note to 3.65% from Wednesday's 3.63%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil backtracked 46 cents to $73.21 U.S.
Gold prices moved ahead a dollar to $1,087 U.S.