Thursday, May 11, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Shares ended the session lower today, as most sectors landed in
the red. Commodities turned lower on profit-taking, following solid gains
earlier in the week. Healthcare issues were a positive standout. U.S.
stocks were lower as well, on rising oil and metal prices that are stoking
inflation anxiety.
* The S&P/TSX Stock Exchange Composite Index plunged 150.88 points, or
1.23%.
* In U.S. economic news, April retail sales increased 0.5%, due in
large part to increased spending at the gas pump. Excluding gasoline sales,
seasonally adjusted sales rose just 0.1%. Excluding autos, sales increased
0.7%. Economists had been expecting larger increases of 0.7% for overall
sales and 0.8% excluding autos.
* Crude oil futures rose today, with a refinery problem in Texas and
the shooting death of an American oil worker in Nigeria fuelling supply
worries. Crude oil settled above US $73 a barrel.
* On the M&A front, Petro-Canada put forth a hostile US $113 million
bid for Canada Southern Petroleum. Petrocan shares slid lower on the day.
* Metals rallied as well today, with gold, silver, copper and platinum
all rising on surging demand and inflation concerns following the U.S.
Federal Reserve rate hike Wednesday. Concerns about the weakening U.S.
dollar are also contributing to the rise. The Fed move was felt among
financial stocks in Toronto, which are sensitive to higher interest rates.
* Technology issues tumbled on the day. Research In Motion Ltd.
announced that it will bring its wireless BlackBerry service to China, the
biggest telecom market in the world, next week through an alliance with
China Mobile Communications Corp. RIM shares were lower on the development
* In health care, Biovail Corp. saw a spike in first-quarter profits to
US $0.40 a share, compared to US $0.07 a share a year earlier, on climbing
sales of its antidepressant Welbutrin XL. Excluding items, the firm earned
US $0.43 a share during the most recent quarter. The mean Thomson First
Call estimate was for US $0.36 a share. Biovail rallied on the report.
* Within the industrial space, ACE Aviation Holdings Inc., parent of
Air Canada, reported a first-quarter profit of C $118 million, or C $1.12 a
share, compared to a loss of C $77 million, or C $0.87 a share, last year.
On an operating basis, the firm posted a loss of C $29 million, excluding C
$33 million in special charges, wider than the year-earlier loss of C $10
million. ACE ended the session lower.
* Canadian Tire Corp. turned a profit of C $47.6 million in the latest
first quarter, up 34.9% over its prior-year earnings of C $35.3 million.
The Canadian hardware retail company said its reported earnings were C
$0.58 a diluted share, compared to C $0.43 in the period last year, ahead
of an analyst consensus forecast for C $0.56 a share.
* Conglomerate Power Corp. of Canada is raising its quarterly dividend
by 17% after first-quarter earnings rose to a better-than-expected C $254
million from a year-earlier C $232 million. "Growth in operating earnings
reflects primarily an increase of 6.7% in the contribution from the
corporation's subsidiaries, as well as higher investment income in 2005,"
the company said in a release.
* Helping to pressure the U.S. market, AIG reported late Wednesday that
its profit slid 16% last quarter; although, it had solid results from its
general insurance unit. Earnings missed estimates, but revenue exceeded
expectations.
-- 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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