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Stocks oil gold all rise { May 2 2006 } Original Source Link: (May no longer be active)
http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1146563767012&call_pageid=968350072197&col=969048863851http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1146563767012&call_pageid=968350072197&col=969048863851
Stocks, oil, gold all climb
May 2, 2006. 05:31 PM
GARY NORRIS AND RITA TRICHUR
CANADIAN PRESS
Canada's benchmark stock index closed modestly higher Tuesday, while the Canadian dollar topped 90 cents (U.S.) for the first time in 28 years against a backdrop of higher oil and gold prices.
On Wall Street, solid earnings from Verizon Communications Inc. pushed stocks higher, although the jump in oil futures above $74 (U.S.) a barrel fuelled inflation worries.
The loonie closed at 90.38 cents (U.S.), up 0.55 of a cent from Monday's close and its highest level since June 1978. The currency had touched an intraday high of 90.42 cents (U.S.).
The federal Conservative minority government presented its first budget after the close of financial markets, but it wasn't a major factor in the latest loonie surge, said Shaun Osborne, chief currency strategist at Scotia Capital.
"For currency traders, actually, it's a bit of a non-event," he said, while noting that the government's solid fiscal surplus is a key component supporting the currency, along with strong global demand for Canadian energy, metals and other products.
"If we were to move back into a deficit situation at the government level, that would quite radically change the outlook for the Canadian dollar, but we don't think that's likely to happen," Osborne said.
He suggested that the currency could rise to 92.5 cents (U.S.) over the next few weeks, with "a continuation of gradual Canadian-dollar appreciation over the medium to longer term as well."
Toronto's S&P/TSX composite index closed up 39.9 points to 12,274.46, as gains in energy and gold stocks were partially offset by declining financial and mining issues.
The junior TSX Venture Exchange ended 10.33 points higher to 3,140.32.
In New York, the blue-chip Dow Jones industrial average advanced 73.16 to 11,416.45.
The Nasdaq moved ahead 5.05 to 2,309.84 and the S&P 500 rose 8.02 to 1,313.21.
Verizon (NYSE: VZ) said costs to build its fibre-optic telecommunications network led to a seven per cent dip in quarterly profit, but its results before special items still beat Wall Street targets. Its stock fell 15 cents to $32.64 (U.S.).
Oil and gold prices were higher, with light sweet crude rising 91 cents to $74.61 (U.S.) per barrel on the New York Mercantile Exchange, while June bullion gained $7.20 to $667.40 (U.S.) per ounce.
On the TSX, declines beat advances 811 to 743 with 225 unchanged.
Toronto market volume was 384 million shares worth $5.85 billion Cdn.
Shares in Atlantic Canadian telecom provider Aliant Inc. (TSX: AIT) were down 19 cents at $36.40 after it reported first-quarter earnings fell 7.8 per cent to $40.2 million including an $8.3-million non-cash charge.
Molson Coors Brewing Co. (TSX: TAP.NV) sold two per cent more beer in the first quarter of this year than a year ago and trimmed its net loss to $30.2 million (U.S.) from $34.2 million. Its stock fell $3.67 to $76.36 Cdn.
Solid demand and high prices for construction materials amid warm winter weather boosted first-quarter sales at St. Lawrence Cement Group (TSX: ST.SV.A) by 27 per cent from a year ago and cut its loss in the seasonally weak quarter to $9.3 million from $23.6 million. Its shares traded at $32.18, up 43 cents.
Inmet Mining Corp. (TSX: IMN) reported its net profits nearly tripled to $79.6 million in the first quarter on high metals prices and a special one-time gain from an asset disposal. Its shares lost $1.31 to $39.69.
Sherritt International (TSX: S) reported a flat quarterly profit of $35.7 million from its coal, base-metal and energy operations. Its stock was up 24 cents to $12.44.
Imperial Oil's (TSX: IMO) first-quarter earnings increased 50 per cent to $591 million (U.S.) but its stock fell $2.35 to $116.66 Cdn.
The Pengrowth Energy Trust (TSX: PGF.A) earned $66.3 million in the first quarter, up 18 per cent from a year ago. It shares lost 11 cents to $27.46.
Boralex Power Income Fund (TSX: BPT.UN) said its first-quarter earnings rose to $13.1 million from $8.2 million. Its units lost a penny to $11.30.
Stock-trading software provider Belzberg Technologies Inc. (TSX: BLZ) more than quadrupled its first-quarter profits to $1.8 million on growth in its options-trading technology. Its shares lost 17 cents to $8.65.
The Nasdaq Canada index gained 4.92 to 514.94.
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