Stocks Regain Positive Footing

Jan 23, 2019 ( via COMTEX) —

Equities in Toronto opened higher on Wednesday, driven by gains in shares of consumer discretionary and energy companies.

The S&P/TSX Composite Index gained 41.66 points to start Wednesday at 15,275.42

The Canadian dollar eked up 0.05 cents to 74.91 cents U.S.

Restaurant Brands International on Wednesday named Burger King official Jose Cil as its chief executive officer. Restaurant Brands climbed $5.14, or 6.8%, to $81.31.

First Quantum Minerals says it has ended plans to layoff 2,500 workers in Zambia due to higher tax plans and will continue to dialogue with the government over the issue. First Quantum shares gained 47 cents, or 3.7%, to $13.08.

U.S. cannabis retailer Green Growth Brands Inc said on Tuesday it would make a second all-stock takeover bid for Aphria, valuing the Canadian pot producer at about $2.35 billion. Aphria shares dipped 15 cents, or 1.6%, however, to $9.28.

Canaccord Genuity cut the target price on SNC-Lavalin Group to $58.00 from $61.00. SNC shares demurred eight cents to $47.67.

Raymond James cut the target price on Russel Metals to $31.00 from $36.00. Russel shares docked 17 cents to $22.78.

National Bank of Canada cut the target price on Saputo to $43.00 from $44.00. Saputo shares slid 25 cents to $38.42.

On the economic slate, Statistics Canada said retail sales decreased 0.9% to $50.4 billion in November on lower sales at gasoline stations and motor vehicle and parts dealers. Excluding these two sub-sectors, retail sales increased 0.2%.


The TSX Venture Exchange regained 0.81 points to 593.89

All but two of the 12 TSX subgroups were positive in the first hour, led by consumer discretionary stocks, vaulting 1.9%, while information technology clicked 0.8% higher, and consumer staples, up 0.6%.

The two laggards were gold, down 0.9%, and materials,

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S&P, Nasdaq dip as financials, healthcare weigh

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 22, 2019. REUTERS/Brendan McDermid

(Reuters) – The S&P 500 and the Nasdaq reversed course to dip slightly on Wednesday due to losses in healthcare and financial sectors, while the Dow stayed afloat on positive earnings reports from IBM, United Technologies and Procter & Gamble.

At 11:26 a.m. ET the Dow Jones Industrial Average .DJI was up 39.81 points, or 0.16 percent, at 24,444.29, the S&P 500 .SPX was down 4.14 points, or 0.16 percent, at 2,628.76 and the Nasdaq Composite .IXIC was down 15.40 points, or 0.22 percent, at 7,004.96.

Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur

Our Standards:The Thomson Reuters Trust Principles.

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Energy sector weighs on Toronto stock market as U.S. stocks gain ground

TORONTO — Canada’s main stock index moved lower in late-morning trading as the energy sector helped lead the way down.

The S&P/TSX composite index was down 21.14 points at 15,212.62.

In New York, the Dow Jones industrial average was up 129.43 points at 24,533.91. The S&P 500 index was up 4.23 points at 2,637.13, while the Nasdaq composite was up 8.49 points at 7,028.85.

The Canadian dollar traded for 74.84 cents US compared with an average of 74.96 cents US on Tuesday.

The March crude contract was down 14 cents at US$52.87 per barrel and the February natural gas contract was up six cents at US$3.10 per mmBTU.

The February gold contract was down US$1.50 at US$1,281.90 an ounce and the March copper contract was down 0.40 of a cent at US$2.66 a pound.

Index and currency in this story: (TSX:GSPTSE, TSX:CADUSD=X)

The Canadian Press

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200-Day Moving Average Remains Critical In Both S&P 500 & NASDAQ 100

Commodities have a well-deserved reputation of being far more volatile than the stock market. We are mainly commodity traders which means we are accustomed to volatility. However, the Trump Presidency has completely turned this notion on its head. Stocks appear to be where all the action is while commodities (and currencies) continue to linger in sideways trading ranges.

Our suggestion to sell the rip two weeks ago was an attempt use this volatility to our advantage. Stocks travelled further north than we expected, but we are not convinced that the big bottom the bulls have been excited about is in. Bear markets in stocks are nearly always accompanied by big rallies. Could yesterdays big decline be the start of another leg lower? It is too early to tell.

Fears of higher interest rates and a tariff-induced slowdown in China led to the Christmas Eve massacre that saw both the S&P 500 and the NASDAQ dip as low as 20% from last summer highs. It took dovish talk by Fed Chairman Powell and a promise of negotiation including the potential lifting of sanctions by the Trump Administration to stem the decline. Stocks responded to this jawboning by rallying smartly, turning the fear of losing money into the fear of missing out (FOMO).

Data Source: Reuters

The charts tell us that both the S&P 500 and the NASDAQ are still well below critical levels.Until they can close convincingly back above their respective 200-day moving averages we will maintain our bearish bias.Neither has been able to do that yet. Both indexes continue to make lower highs and lower lows tell-tale signs of a bear market.The oversold conditions of late December have switched polarity and become the overbought conditions of late January.This increases the potential for another reversal, this time to the

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U.S. stocks climb after strong earnings; IBM leads Dow rally

The Canadian Press
Published Wednesday, January 23, 2019 12:38AM EST
Last Updated Wednesday, January 23, 2019 11:28AM EST

TORONTO — Canada’s main stock index moved lower in late-morning trading as the energy sector helped lead the way down.

The S&P/TSX composite index was down 21.14 points at 15,212.62.

In New York, the Dow Jones industrial average was up 129.43 points at 24,533.91. The S&P 500 index was up 4.23 points at 2,637.13, while the Nasdaq composite was up 8.49 points at 7,028.85.

The Canadian dollar traded for 74.84 cents US compared with an average of 74.96 cents US on Tuesday.

The March crude contract was down 14 cents at US$52.87 per barrel and the February natural gas contract was up six cents at US$3.10 per mmBTU.

The February gold contract was down US$1.50 at US$1,281.90 an ounce and the March copper contract was down 0.40 of a cent at US$2.66 a pound.

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Stocks – Dow Component Earnings, Guidance Lifts Wall Street

© Reuters. – A trio of components help push the broader market higher early Wednesday after posting strong quarterly numbers.

The Dow Jones jumped 0.9% at 9:32 AM ET (14:32 GMT), while the gained 0.52%. The tech-heavy rose 0.57%.

IBM (NYSE:) got the blue-chip party started after the bell Tuesday, and issuing above-consensus guidance. Shares jumped 7%.

Procter & Gamble (NYSE:) rose 6% as the company .

And United Technologies (NYSE:) forecast . The stock gained 6.1%.

Today’s gains follow Wall Street’s more-than-1% loss on Tuesday as worries about slowing global growth came to the fore after a gloomy economic outlook from the International Monetary Fund, signs of further cooling in China’s economy and mixed reports on U.S.-China trade talks.

Still, the benchmark S&P 500 is about 10% away from its record closing high on Sept. 20.

Corporate earnings continued to dictate early trading given the rather empty economic calendar due to the partial government shutdown. A vote is reportedly scheduled in the Senate Thursday on Democratic and Republican plans to end the shutdown, but chances of either passing are slim.

Among other active stocks, in the broadcast space Comcast (NASDAQ:) rose 4.2% after the company reported that topped expectations as Internet subscribers surged. And Viacom (NASDAQ:) stock gained 0.75% after the company confirmed that it would pay $340 million to acquire Pluto TV.

In financials, Capital One (NYSE:) slid 4.8% after the company reported that came in well below consensus.

Reuters contributed to this report.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the

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IBM, P&G and United Tech Lift Dow Over 200 Points

The Dow Jones Industrial Average gained over 200 points on Wednesday as corporate earnings of IBM, Procter & Gamble and United Tech came in better than expected.

The S&P 500 and Nasdaq Composite both edged higher. According to data from FactSet, out of the 14 percent of S&P 500 companies who have already reported earnings, 72.9 percent beat expectations.

“Ultimately, when you look at the data, the thing that matters most to the market is earnings,” said Andres Garcia-Amaya, founder of Zoe Financial. “I would say the technology sector is one that could make or break the story for equities. If you look at margins for the sector versus the other sectors, it’s by far the largest.”

“If you start to actually see margins for the technology sector deteriorate, that’s going to basically be something investors are not going to be happy about,” Garcia-Amaya added.

On the flipside, however, only 58.7 percent beat sales forecasts. Nonetheless, profits have grown by 13.2 percent, beating expectations, but representing the slowest rate of earnings since the fourth quarter of 2017.

IMF Cuts Global Growth Forecast

The Dow ended Tuesday down 300 points on fears of a global economic slowdown. The International Monetary Fund lowered its global growth forecast, pointing to ongoing trade wars dampening China’s economic outlook as well as rising interest rates in the United States.

“Higher trade uncertainty will further dampen investment and disrupt global supply chains,” said IMF chief economist Gita Gopinath.

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Stocks rebound on strong corporate earnings; IBM leads Dow gainers

Stocks were whipsawed Wednesday, after rallying in the early going after a round of upbeat earnings from some corporate heavyweights then suffering a pullback that indicated lingering fears over global growth and U.S.-China trade tensions.

What are stocks doing?

The Dow Jones Industrial Average DJIA, -0.17%  rose 50 points, or 0.2%, to 24,450, while the S&P 500 index SPX, -0.56%  fell 4 points, or 0.1%, to 2,629. The Nasdaq Composite COMP, -0.72% rose 16 points, or 0.2%, to 7,004.

At session highs, the Dow had risen 296 points, the S&P had advanced 20 points, while the Nasdaq was up as much as 64 points Wednesday morning.

What’s driving the market?

Earnings season is in full swing, and investors are laser-focused on fourth quarter results, but more important, what corporate executives are saying about the outlook for profits and revenue in 2019. Late-Tuesday and early-Wednesday earnings reports have been largely well received by investors, starting with International Business Machines Corp. IBM, +7.62% which was leading Dow gainers after management issued a bullish outlook for profits in 2019.

Wednesday’s action represents a rebound from Tuesday’s selloff that was tied to renewed gloom over the outlook for the global economy, after the International Monetary Fund cut its forecast for world growth and China reported its economy grew at the slowest pace since 1990 last year.

Weakness was also tied in part to an unwinding of optimism over trade talks after news reports said U.S. officials had either canceled or turned down a preparatory meeting with Chinese officials. Losses were trimmed ahead of the closing bell after White House economic adviser Larry Kudlow denied that a meeting had been canceled.

Read: Wall Street worries about China slowdown complicate Trump’s get-tough trade strategy

Citing White House advisers, Reuters reported that President Donald Trump won’t agree

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Geopolitics Aside, How About Those Earnings? Investors Appear To Switch Focus

Like a rubber band, it appears stocks are ready to snap back from Tuesday’s sharp losses as investors ponder a fresh set of earnings news. 

At the same time, nothing else seems to have really changed much. The same old stew of geopolitics continues to be the backdrop, with little progress to report on China talks, the government shutdown, or Brexit. Economic news continues to be grim out of Asia, with the latest batch coming from Japan (see more below).

With those things looking pretty static—at least as of early Wednesday—investors could be looking for a diversion, and they may have gotten it in the form of earnings.

Earnings Scorecard Gets an Update

One seemingly unlikely source of good cheer was IBM (NYSE: IBM). The company, whose shares are up 7.8% since the beginning of the January after a long slide marked by years of falling revenue, topped third-party revenue consensus estimates when it reported late Tuesday. Earnings per share also came in on top of analyst projections, and guidance looked stronger than many had expected. Shares jumped 6% in pre-market trading.

IBM’s consulting business helped lead the way, and revenue from the company’s cloud-based offerings rose 12%. Last year, IBM bought software maker Red Hat to help it grow its presence in the cloud business. In its earnings press release, the company said “major clients worldwide” are turning to IBM cloud services, including French bank BNP Paribas. On the negative side, the company’s systems unit, which includes hardware and operating systems software, declined 21% in Q4.

Two other key firms delivered mostly better than expected results early Wednesday: Procter & Gamble Co (NYSE: PG) and United Technologies (NYSE: UTX). PG also raised guidance and saw shares move higher in pre-market trading. UTX gave what looked like a strong forecast

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