Canadian stocks ended in the red for a second straight day Tuesday, led mostly by resources issues, ahead of the much anticipated European Central Bank and the U.S. Federal Reserve policy meet this week. Investors were apprehensive if any quantitative easing would be forthcoming at all or if any measures were announced, would be too little to ease the economic crisis burden. Some strong macroeconomic data from the U.S. also reduced hopes of further monetary stimulus.
Toronto's main index, the S&P/TSX, closed Tuesday at 11,664.71, down 93.17 points or 0.79 percent. The S&P/TSX Composite Index touched an intraday high of 11,797.29 and a low of 11,651.82.
Hardware dealer RONA inc. (RON.TO) soared 13.73 percent after its Board of Directors rejected an unsolicited, non-binding $14.50 per share acquisition proposal from U.S.-based Lowe's Companies, Inc. (LOW). The board believes the offer is not in the best interests of RONA and its stakeholders.
The Metals & Mining Index declined 0.76 percent with Lundin Mining Corp. (LUN.TO) dropping 2.28 percent and Teck Resources Limited (TCK.B.TO) shedding 2.97 percent. Osisko Mining Corporation (OSK.TO) moved up 0.59 percent, while First Quantum Minerals Ltd. (FM.TO) dropped 0.22 percent. Inmet Mining Corp. (IMN.TO) gained 4.75 percent.
The Financial Index was down 0.19 percent with Toronto-Dominion Bank (TD.TO) down 0.14 percent and Royal Bank of Canada (RY.TO) down 0.71 percent. Bank of Nova Scotia (BNS.TO) gained 0.25 percent.
The Energy Index shed 1.89 percent with U.S. crude oil futures for September delivery plunging $1.72 or 1.9 percent to close at $88.06 a barrel Tuesday on the NYMEX.
Among energy stocks, Nexen Inc. (NXY.TO) dropped 0.59 percent and Talisman Energy Inc. (TLM.TO) shed 3.43 percent. Encana Corp. (ECA.TO) gathered 2.34 percent, while Suncor Energy Inc. (SU.TO) dropped 2.33 percent. Progress Energy Resources Corp. (PRQ.TO) edged up 0.09 percent.
Trican Well Service (TCW.TO) dived over 7 percent, after slipping to a second-quarter loss of C$50.9 million or C$0.35 per share compared to a profit of C$30.1 million or C$0.21 per share in the prior-year quarter. Adjusted loss was C$48.6 million or C$0.33 per share, while analysts expected a loss of C$0.37 per share for the quarter.
The Global Gold Index fell 1.70 percent, with gold futures for August delivery shedding $9.20 or 0.6 percent to close at $1,610.50 an ounce Tuesday on the NYMEX. The Capped Materials Index dropped 1.47 percent.
Among gold stocks, Yamana Gold Inc. (YRI.TO) shed 2.17 percent, Kinross Gold Corp. (K.TO) dropped 1.76 percent, and Barrick Gold Corp. (ABX.TO) edged down 0.27 percent.
Fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) dropped 1.29 percent.
Transportation systems maker Bombardier Inc. (BBD.B.TO) ended flat, while Blackberry maker Research In Motion Limited (RIM.TO) dropped 0.97 percent.
Distribution utility company Fortis Inc. (FTS.TO) edged up 0.42 percent after posting improved second quarter net earnings of C$62 million or C$0.33 per share compared to C$57 million or C$0.32 per share a year ago. Analysts expected earnings of C$0.33 per share for the quarter.
Power company TransAlta Corp. (TA.TO) reported a net loss of C$797 million or C$3.51 per share, compared to a profit of C$12 million or C$0.05 per share a year ago. Comparable loss was C$0.10 per share, while nalysts expected a loss of C$0.07 per share. The stock edged up 0.58 percent,
News service provider Thomson Reuters Corp. (TRI.TO) shed 1.73 percent despite a much improved second-quarter net earnings of $922 million or $1.11 per share compared to last year's $563 million or $0.67 per share. Adjusted earnings from continuing operations were $0.54 per share, compared with $0.51 per share last year.
Electricity transmission systems operator Brookfield Infrastructure (BIP_UN.TO) announced that it along with its institutional partners would acquire the remaining 45 percent of the Autopista Vespucio Norte or AVN toll road that they do not currently own for approximately $590 million. The stock shed 1.64 percent
In economic news, Statistics Canada said real gross domestic product edged up 0.1 percent in May, just missing consensus estimates for a 0.2 percent growth and lower than 0.3 percent growth recorded in April. The output of service industries rose 0.1 percent in May on the strength of retail trade and the finance and insurance sector.
In economic news from the U.S., the Commerce Department said personal income in the country had risen by $61.8 billion in June, an increase of 0.5 percent. The increase was higher than the 0.4 percent predicted by most economists and comes atop revised figures that showed the May increase in personal income of 0.3 percent was higher than the 0.2 percent initially reported. However consumer spending, known formally as personal consumption expenditures fell marginally in June, dropping $1.3 billion.
A report by Standard & Poor's showed the S&P/Case-Shiller 20-City Composite Home Price Index rose by 2.2 percent in May following a 1.3 percent increase in April. Economists expected the index to increase by 1.2 percent.
From Europe, data from the Eurostat revealed eurozone inflation remained stable in July, in line with economists' expectations. The annual rate came in at 2.4 percent, which is above the central bank's target of "below but close to 2 percent."
A separate report from the agency indicated eurozone unemployment rate remained unchanged at a record high in June. The jobless rate for June was 11.2 percent, the same as in May. The rate was in line with economists' expectations.
Elsewhere, unemployment in Germany increased in July as widely expected, data from the Federal Labor Agency showed. The number of unemployed rose by 7,000 in July from a month earlier. This was in line with economists' forecast and followed a similar increase in the previous month.
Meanwhile, Germany's retail sales dropped unexpectedly in June from the prior month, data from the Federal Statistical Office revealed. Retail turnover was down 0.1 percent from May, in contrast to a 0.5 percent rise expected by economists. Nonetheless, the rate of decline was slower than the 0.3 percent drop in May.
by RTT Staff Writer
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