Wednesday, May 3, 2006, 4:15 PM EST (Thomson Financial Corporate
Group): Canadian stocks plunged today on declining energy and metals
shares; meanwhile, U.S. stocks were lower on economic data that hinted at
the possibility of further interest-rate hikes. Oil prices declined by more
than US$2 a barrel, after U.S. inventory data unexpectedly revealed
increased stockpiles of gasoline.
* The S&P/TSX composite index fell 78.31 points, or 0.64%.
* In U.S. economic reports, new orders for U.S.-made factory goods
increased 4.2% in March, led by strong demand for airplanes, machinery,
electronics and petroleum, the Commerce Department reported. It was the
largest gain in orders in 10 months, coming in above economists'
expectations of 3.7%. Also, the ISM non-manufacturing index rose to 63%
from 60.5% in March. The increase was unexpected.
* The Canadian dollar traded at a fresh 28-year high, after the new
Conservative government's first budget unveiled greater-than-expected tax
cuts and other measures to boost the economy.
* Oil and gasoline prices fell in New York today after U.S. inventories
data showed stockpiles of gasoline unexpectedly rose after eight straight
drops, easing concerns about a supply crunch ahead of the summer driving
season. Gasoline inventories climbed by 2.1 million barrels to 202.7
million in the week ended April 28; analysts were expecting a fall of
650,000 barrels.
* Gold finished lower, after reaching a new quarter-century earlier in
the session, partly due to strength in the U.S. dollar. On the corporate
front, Glamis Gold declined, after the firm's stronger first-quarter
profits missed the mean Thomson First Call estimate.
* Newspaper publisher Torstar Corp. reported a steep decline in first-
quarter net profits, while revenue fell slightly from last year, when the
company posted one-time currency gains and other benefits. The owner of
Canada's largest newspaper, the Toronto Star, and the Harlequin romance
fiction publisher, said net profits fell to C$9.8 million, or C$0.13 a
share, from C$21.1 million, or C$0.27 a share, a year ago. Revenue slipped
to C$357.1 million from C$358.8 million.
* Montreal-based BCE Inc. saw a slight rise in first-quarter profit
from the sale of its stake in computer services company CGI Group Inc.
Profit advanced to C$477 million, or C$0.52 a share, from C$474 million, or
C$0.51 a share, in the year-earlier period. Revenue edged up to C$4.73
billion from C$4.63 billion a year ago.
* In the U.S. corporate news, disappointment over Cincinnati-based blue
chip Procter & Gamble Co.'s lower-than-forecast revenue weighed on the Dow.
The company said net income increased to US$2.21 billion, or US$0.63 a
share, from US$1.61 billion, or US$0.59, a year ago. Analysts had forecast
earnings, on average, of US$0.61 a share. Sales for the three months ended
March 31 advanced 21% to US$17.25 billion from US$14.29 billion in last
year's third quarter, the company said.
-- 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
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SOURCE Thomson Financial Corporate Group
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