Thursday, June 1, 2006 4:15 PM EST (Thomson Financial Corporate
Services): Canadian shares moved higher, strong aided by energy,
technology, financial, industrial and telecom stocks. In the U.S., the
latest economic data showed cooling economic growth, for the most part,
which eased fears of inflation and further rate hikes from the Fed. Also,
crude inventories data showed a rise in stockpiles, as well as lower demand
for gasoline against the year-ago period.
* The S&P/TSX Stock Exchange Composite Index jumped 102.45 points, or
0.87%.
* Meanwhile, on the Canadian economic front, 2005 employment grew for
the 13th year in a row, Statistics Canada said Thursday. The annual
employment rate hit a record, with 62.7% of the working-age population
holding jobs. But even as employers were adding to payrolls last year, many
people took themselves out of the labor market, leading to a tightening job
market, Statscan said. As a result, the annual unemployment rate fell to
6.8% last year, the lowest rate since 1976.
* On the U.S. economic front, the Labor Department revised upward its
estimate of first-quarter productivity growth to 3.7% but said wage costs
rose just 1.6% instead of an initial reading of 2.5%. First-time jobless
claims increased by 7,000 to 336,000 last week, compared with predictions
for a 9,000 decline. Elsewhere, the ISM index fell to 54.4% in May from
57.3% in April, a decline that was slightly larger than expected. The
consensus forecast had been for the index to fall to 55.8%. Meanwhile,
three separate reports pointed to a slowing housing market.
* Quarterly results from the financial sector were in focus today.
Canadian Imperial Bank of Commerce said before the market opened that its
second-quarter net profit rose to C $1.63 a share, up from C $1.20 a share
a year ago. Excluding items, earnings were C $1.53 a share, in line with
analyst expectations. The bank boosted its dividend.
* In mining, documents show that Inco Ltd. chief executive Scott Hand
met with his counterpart at Teck Cominco as recently as last month to
discuss a possible three-way mining transaction. If realized, the move
would create one of the world's largest mining companies.
* In commodities, oil prices slipped as OPEC appeared willing to
maintain current crude output and after the U.S. yesterday signaled a
willingness to hold direct talks with Iran on its nuclear program. And U.S.
inventories data released this afternoon showed domestic oil and gasoline
inventories rose last week, while gasoline demand was up less than 1% over
the past four weeks versus a year ago. Crude oil for July delivery fell US
$0.95 to $70.34 a barrel.
-- Michael.O'Brien@contractor.Thomson.com; Thomson Financial Corporate
Services
This is Thomson Financial Corporate Services Canadian Commentary, which
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accurate, we take no responsibility for inaccurate information and reserve
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SOURCE Thomson Financial Corporate Group
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