Thursday, May 4, 2006, 4:15 PM EST (Thomson Financial Corporate Group):
Canadian stocks fell, as oil prices dipped below US$70 a barrel for the
fist time since mid-April, thereby pressuring the local energy sector.
Meanwhile, U.S. shares were higher on the oil decline as well as on strong
April retail sales. Investors are preparing for monthly jobs data due out
tomorrow from both sides of the border.
* The S&P/Toronto Stock Exchange Composite Index tumbled 70.28 points,
or 0.58%.
* Crude-oil prices dropped below US$70 per barrel and gasoline futures
hit a three-week-plus low, as ongoing speculation about Iran's nuclear
ambitions were eclipsed by U.S. inventories data that showed an increase in
U.S. gasoline stockpiles-the first in nine weeks-and crude inventories at
their highest level in eight years.
* On the economic front, Statistics Canada reported that March building
permits hit their second-highest level on record; permits rose 5.3%, more
than double economists' expectations, to C$5.5 billion, on an uptick in
non- residential permits.
* In U.S. news, April retail sales rose by 6.6% in year-over-year
sales, according to the International Council of Shopping Centers. Wal-Mart
led the charge, with April same-store sales beating its initial forecast.
* Topping earnings headlines within the financial group, Manulife
Financial Corp. reported first-quarter profit up 19% to a new high and
announced a two- for-one stock split. Net income rose to C$956 million, or
C$1.19 a share, from last year's C$801 million, or C$0.98 a share, on
higher sales across its divisions. The mean Thomson First Call estimate for
the latest quarter was C$1.18 a share. Revenue jumped to C$8.23 billion
from C$7.57 billion last year.
* Within the energy group, Suncor Energy Inc. reported first-quarter
profit rose to C$1.52 a share from C$0.14 a share a year-earlier on higher
oil sands production, surging oil prices and a considerable gain on fire
insurance. Excluding items, earnings would have been C$1.11 a share,
compared with last year's C$0.09 a share. According to Thomson First Call,
the average analyst estimate was C$1.22 a share. Cash flow from operations
spiked to C$1.314 billion from C$294 million. Suncor declined on the day.
* Elsewhere, Loblaw Cos. Ltd. reported a slight decline in
second-quarter profits to C$0.51 a share from C$0.52 a share in the
year-ago period. Excluding items, adjusted basic share earnings were C$0.54
a share, compared to C$0.67 a share last year. The grocer reported sales
edged up 1.4% to C$6.15 billion in the quarter.
* Ontario-based ATI Technologies Inc.'s shares rose on news it will
team with Finland's Nokia Corp. to create multimedia features such as music
playback, 3- D gaming, mobile TV and video for Nokia cell phone customers.
Nokia, the world's largest cell phone maker, said it is "working closely"
with ATI to provide multimedia content for Nokia cell phone users.
* Within the industrial group, WestJet Airlines reported a 30.4%
increase in revenue passenger miles in April and 78.5% of seats filled-a
record. Revenue passenger miles increased to 763.8 million from 585.7
million in April 2005, and grew 21.6% year-to-date to 3,064.3 million. The
company's load factor increased 9.7 percentage points to 78.5% compared
with 68.8% in April 2005.
-- 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
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SOURCE Thomson Financial Corporate Group
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