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[March 24, 2014]
Positive open in Toronto
(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) CN, Bombardier in focus Stocks bolted from the blocks early Monday morning in Toronto, although reaction in international markets to a survey that showed China's manufacturing contracted in February suggested gains could be limited.
The S&P/TSX composite index opened the day and week up 28.12 points at 14,363.88 The Canadian dollar gained 0.12 cents at 89.17 cents U.S.
The Teamsters union representing conductors, yard workers, and traffic coordinators agreed to meet with Canadian National Railway one last time in hopes of reaching a new settlement, the rail operator said on Saturday. CN shares gained 21 cents in the early going to $62.34.
Plane and train maker Bombardier said that possible sanctions by Canada and other western countries against Russia probably will delay its planned joint-venture deal with Rostec, the Russian state-owned industrial and defense conglomerate. Bombardier shares dipped a penny to $4.17.
ON BAYSTREET The TSX Venture Exchange dipped 1.97 points to 1,032.79 Eight of the 14 Toronto subgroups were positive at the open, with global base metals and information technology issues each gaining 0.6%, while utilities hiked 0.5%.
The half-dozen laggards were weighed by gold, down 1.5%, materials, down 0.8% and health-care stocks, sliding 0.3%.
ON WALLSTREET The Dow Jones Industrials and S&P 500 were up slightly Monday, while the NASDAQ fell modestly in early trading.
The Dow Jones Industrial Average recovered 36.63 points to 16,339.40. The S&P 500 index eked ahead 0.17 points to 1,866.69. The NASDAQ dropped 20.29 to 4,256.67 Apple shares popped after the Wall Street Journal reported that the computing giant is exploring a partnership with Comcast for an Apple-branded TV service.
Shares of Nu Skin surged after the company said it was fined around $540,000 U.S. for its business practices in China. The beauty products marketer had previously disclosed that it was being investigated by Chinese regulators, but the relatively small penalty seems to be a relief to investors who had feared a more major regulatory blow.
Herbalife, the nutritional supplements distributor that uses a similar multi-level marketing sales model as Nu Skin, also rallied on the news. Herbalife revealed earlier this month that it is being probed by the U.S. Federal Trade Commission.
The company has been in the cross-hairs of hedge fund manager Bill Ackman, who has publicly called it a pyramid scheme and unveiled a large bet that its stock price would fall. He also recently disclosed what he says are more shady tactics by the company in China.
Lions Gate shares jumped after the studio's film "Divergent" had a strong opening at the box office. Many analysts expected a weaker showing for the movie.
Investors were also gearing up for some high profile initial public offerings in the days ahead.
King Digital Entertainment, the company behind the popular Candy Crush Saga online game is one of 14 companies currently scheduled to go public this week.
The IPO mania is part of a global trend, as more and more companies seek to go public in order to take advantage of increased demand for stocks.
Prices for 10-year U.S. Treasuries sagged, raising yields to 2.77% from Friday's 2.75%. Treasury prices and yields move in opposite directions.
Oil prices climbed 74 cents to $100.20 U.S. a barrel.
Gold prices plunged $18 to $1,318 U.S. an ounce.
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