Monday, May 1, 2006, 4:15 PM EST (Thomson Financial Corporate Group):
Canadian stocks were lifted by oil and gold today as the price of crude oil
rose on continued Iranian supply fears. In the U.S., a raft of economic
data was released, alongside better-than-expected April sales for Wal-Mart
Stores Inc. The Canadian dollar reached a 28-year-high at one point today
on a continued spike in commodity prices.
* The S&P/Toronto Stock Exchange Composite Index rose 30.39 points, or
0.25%.
* The loonie's surge today has some observers speculating that there
may be higher yet to go for the Canadian currency, and more losses for the
U.S. dollar. Some analysts are calling for the two currencies to reach
parity.
* Crude oil was higher today on concerns that the Iran nuclear debacle
could lead to a supply disruption. U.S. Secretary of State Condoleezza Rice
said Sunday that the U.S. would keep pushing for UN sanctions against the
Islamic Republic. The UN's International Atomic Energy Agency told the
council April 28 that Iran had successfully enriched uranium and was
stonewalling inspectors' efforts to determine whether the program is
intended for the production of weapons. Several Canadian oil concerns
finished notably higher on the day.
* Meanwhile, gold also helped lift Canadian stocks. The price of
bullion leapt on a decline in the greenback and concerns regarding Iran,
which sent investors into safe-havens.
* On the U.S. economic front, personal incomes rose 0.8% in March, the
biggest gain since September, after rising 0.3% in February. Consumer
spending was up 0.6%. Consumer prices rose 0.4% in March after rising 0.1%
in February, as measured by the personal consumption expenditure index.
Core prices, which exclude food and energy prices, rose 0.3%, the biggest
gain since October.
* The ISM index rose more than expected, from 55.2% in March to 57.3%
in April, the highest level since November.
* Bucking the positive trend today, technology firms moved lower for
the most part. Research in Motion Ltd. was hit with another
patent-infringement suit, this time by U.S.-based Visto Corp., which makes
wireless email software.
* Elsewhere, Nortel Networks Corp. reported late Friday it lost US$2.6
billion last year, compared with US$207 million in 2004; the filings
reflect Nortel's restatement of its 2003 and 2004 financial results, as
well as the first nine months of 2005. Nortel shares were down on the news.
* In other news, Cameco Corp.'s first-quarter net jumped to C$0.32 per
share from C$0.07 per share a year ago, and revenue more than doubled to
C$542 million from C$216 million.
* CV Technologies Inc. has obtained clearance from the U.S. Food and
Drug Administration to market its Canadian cold and flu remedy COLD-FX in
the U.S.
* Meanwhile, in the U.S., retail giant Wal-Mart climbed after reporting
that April U.S. same-store sales rose 6.8% on Easter sales, surpassing the
company's estimates for a gain of 4%-6% at stores open at least a year.
-- Michael.O'Brien@contractor.thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services Canadian Commentary, which
is updated twice daily. The information herein is believed to be true and
accurate, we take no responsibility for inaccurate information and reserve
the right to update our reports. For more financial information at your
fingertips, please visit http://www.irchannel.com. If you have any questions
please e-mail James Sang at james.sang@tfn.com or call 646.822.6233 For
more information about Thomson Financial visit us on-line at
http://www.thomsonfinancial.com.
SOURCE Thomson Financial Corporate Group
back to top
