TSX tails off

About this update from Hammond Power Solutions Inc. Class A

Telecoms weigh market down Apr. 28, 2010 (Baystreet.ca) -- Canadian stocks are likely to witness a mixed reaction Wednesday morning amid varied cues from the commodities prices. The S&P/TSX Composite Index fell 43.54 points in the first hour of trading to 12,103.20 Meanwhile, renewed worries over the Greece debt situation may overshadow positive economic data from the U.S., the country's largest trading partner. Gold stocks may be in focus after Barrick Gold reported earnings that beat estimates by a notable margin. Also, the recovery in the prices of gold is likely to help lift sentiment. In corporate news, Barrick reported adjusted first quarter net income of $0.75 per basic share, versus $0.34 per basic share in the last year quarter. Analysts were expecting the firm to report earnings of $0.63 per share for the quarter. Integrated energy company Husky Energy reported improved first quarter net earnings of $0.41 per share, compared to $0.39 per share in the same period of 2009. The company declared a quarterly dividend of $0.30 per share. Electrical equipment maker Hammond Power Solutions posted lower first quarter net earnings of $0.19 per share, compared to $0.36 per share in the previous year quarter. Canadian stock market operator TMX Group reported higher first-quarter net income of $0.66 per share, up from $0.58 per share in the year ago quarter. It has also declared a dividend of $0.38 on each common share outstanding. Information technology services provider CGI Group said its second-quarter net earnings increased to $0.28 per share from $0.25 per share in the prior year period. Analysts were expecting the company to report earnings of $0.27 per share for the quarter. Property management company FirstService Corp. reported a narrower net loss of $0.02 in the first-quarter, compared to $1.65 per share last year. Analysts were expecting the company to report earnings per share of $0.17. In economic news, yesterday, the S&P slashed Greece's sovereign debt rating by three notches to "BB+". The agency also cut Portugal's credit rating by two steps to "A-", raising speculation that the debt crisis in the euro-zone is extending. Furthermore, the rating agency said its outlook on Greece is "negative", indicating the agency might downgrade the rating again. The Canadian dollar regained 0.29 cents to 98.65 cents U.S. ON BAYSTREET Of the 14 TSX subgroups, 10 were negative in the first hour. Telecoms were off 1%, followed by real-estate, down 0.9% and utilities, which declined 0.8%. The four gainers were led by gold, up 0.8%, while industrials and global base metals tailed off 0.3% each. The TSX Venture Exchange subsided 4.63 points to 1,653.86, while the Nasdaq Canada index settled 1.77 points to 784.89 ON WALLSTREET In New York, stocks climbed Wednesday, one day after a brutal selloff, as improved earnings and anticipation about a key announcement from the Federal Reserve took the edge off worries about Greece's debt troubles. The Dow Jones industrial average pointed upward 21.01 points to 11,013. The S&P 500 index regained 3.82 points to 1,187.53. The Nasdaq composite index gave back 0.12 points to 2,471.35. U.S. stocks fell sharply Tuesday after Standard & Poor's cut Greece's debt rating to junk and downgraded Portugal's rating. The Dow sank 213 points for its biggest one-day point slide in over nine months. The decline was equal to 1.9%. The S&P 500 fell 2.3% and the Nasdaq lost 2%. Dow Chemical reported earnings of 41 cents U.S. per share, coming in well ahead of the 30 cents U.S. EPS that was expected by a consensus of analyst opinion from Thomson Reuters. Dow reported that sales surged 48% in the first quarter compared to the year-ago quarter. AOL reported diluted earnings of 32 cents U.S. per share for the first quarter, coming nowhere near the Thomson Reuters analyst consensus forecast of 70 cents U.S. The Internet company said it significantly reduced operating expenses, though revenue fell nearly 20% compared to the year-ago quarter. General Dynamics reported first-quarter earnings of $1.54 U.S. per share, topping the $1.51 U.S. that had been forecast by Thomson Reuters consensus. Treasury prices settled, raising the yield on the 10-year note to 3.73% from Tuesday's 3.69%. Treasury prices and yields move in opposite directions. The price of a barrel of oil slipped 29 cents to $82.15 U.S. Gold prices gained a further six dollars to $1,168 U.S. an ounce.

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