Tuesday, May 30, 2006, 4:15 PM EST (Thomson Financial Corporate
Services): Canadian stocks were hit with a triple-digit loss, as lower
nickel prices pressured the mining sector; while a decline in Bombardier
shares pressured industrial shares. U.S. stocks also ended lower, after
Wal-Mart Stores Inc. reported disappointing sales and new data showed a
drop in consumer confidence.
* The S&P/TSX Stock Exchange Composite Index tumbled 140.07 points, or
1.18%.
* In Canadian economic news, the first-quarter current-account surplus
shrank to C $10.65 billion as lower natural gas prices dented the value of
energy exports, Statistics Canada said today. The seasonally adjusted
surplus fell by C $2.4 billion from a record in the fourth quarter of last
year, the government agency said, but still exceeded economists' forecasts
of C $8.5 billion.
* On the U.S. economic front, the Conference Board said consumer
confidence slid 6.6 points to 103.2 in May, which topped economists'
prediction for a reading of 100.9. The Index was revised to 109.8 in April.
* In corporate headlines, aircraft and railway car manufacturer
Bombardier said its first-quarter profit declined to US $24 million from a
year-earlier US $55 million as revenue slipped. Earnings from continuing
operations before special items arrived at US $0.02 a share, compared with
US $0.01 a share last year. Bombardier stock fell on the news.
* Aeroplan Income Fund advanced, after the firm announced an increase
in its monthly distributions to unitholders on the travel rewards program's
strong performance. Effective July 31, cash distributions will rise to C
$0.0625 per unit from the current C $0.0583. On an annual basis, the
payment rises 7.1% to C $0.70 from C $0.75.
* Miner Rio Tinto Group is considering a takeover of Montreal-based
Alcan Inc., according to a report today in The Australian Review that said
Anglo- Australian miner Rio might have Alcan "in its sights." Alcan fell on
the news.
* In commodities, nickel had its biggest one-day drop in two weeks
after Inco Ltd. indicated it had come close to averting a strike.
Elsewhere, crude futures rose amid expectations of greater fuel demand
during the summer driving season, and as forecasters warn of hurricane
activity in the coming months.
* In the U.S., Wal-Mart Stores Inc. on Saturday estimated that May
sales rose 2.3% at its U.S. stores open at least a year, the low end of its
forecast, held back by steep gasoline and utility prices. The stock ended
the session lower.
-- 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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