Friday, September 29, 2006, 4:15 PM ET (Thomson Financial Corporate
Services): A surge in tech shares was not enough to offset weakness in the
financial and energy sectors. While the Dow Jones Industrial Average pulled
back from yesterday's second-best-ever showing, it is still on track for
its strongest quarter in ten years.
***CORRECTION: On Wednesday, the Bank of Montreal announced plans to
buy Indianapolis-based First National Bank & Trust for US$290 million, as
it continues to expand in the U.S. Midwest. The Bank's Harris Financial
Corp. is already the second-largest bank in Chicago. The deal, if cleared
by American and Canadian regulators, would close in January. Yesterday's
report mistakenly transposed the amount of the purchase to US$920
million.***
* The S&P/TSX Stock Exchange Composite Index declined 56.17 points, or 0.48%.
* The Canadian GDP for July increased 0.2%, precisely as expected. By
sector, energy, wholesale, retail, and financials were the most lively; the
energy sector was up 1.3%. The modest rise came after a flat figure in
June. Manufacturing output remained unchanged.
* Turning to U.S. economic data, consumer prices rose 0.2% in August,
and are up 3.2% in the past year, the government said. Core consumer
prices, which exclude food and energy, also rose 0.2%. Also, the core
personal consumption expenditure price index has gained 2.5% in the past 12
months, the most since January 1995.
* Meanwhile, the University of Michigan's consumer sentiment index rose
to 85.4 in late September from 84.4 earlier in the month. This is the
highest sentiment level since April. The increase was in line with
forecasts of Wall Street economists. The drop in gasoline prices in
September has boosted confidence, economists said. Elsewhere, the Chicago
purchasing managers' index rose to 62.1% in September from 57.1% in August.
It's the highest reading in a year. Economists were expecting a decline to
about 55.7% in September.
* Research In Motion boosted the tech sector as it skyrocketed more
than 20% on strong second-quarter results and a third-quarter forecast that
resulted in target and bond upgrades from major banks. RIM trumpeted
second-quarter net income of US$140.8 million, or US$0.74 per share, well
above forecasts of US$0.71 per share. Revenue increased to US$658.5
million, up 34% from last year. Also, the company expects to ride the new
BlackBerry Pearl to earnings of between US$0.88 and US$0.95 per share in
the current quarter, well above expectations of US$0.78. However, the
company also revealed some stock option accounting problems dating back to
1998, which are not expected to affect earnings.
* Labopharm has received an "approvable letter" from the US FDA
regarding its once-daily formulation of tramadol. However, full approval of
the painkiller is "subject to the resolution of certain issues."
* Wendy's got a green light to spin off Canadian icon Tim Hortons,
after a federal judge in New York ruled yesterday that the deal does not
break previous agreements with investors. Wendy's has already sold 17.25%
of Tim Hortons through an IPO and plans to distribute the remainder to its
shareholders in a special dividend today.
* Crude underwent a "correction," rising today by only US$0.15 to close
at US$62.91. The move was seen as a reaction to a stand-alone 5% cut in
production by Nigeria, the 8th-largest world oil producer, which was not
coordinated with the rest of OPEC.
* Gold ended an eight-session rally as the greenback rose and traders
took profits. The yellow metal lost US$6.70 to close at US$604.20.
-- Carolyn.Crapo@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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please e-mail James Sang at james.sang@tfn.com or call 646.822.6233. For
more information about Thomson Financial visit us on-line at
http://www.thomsonfinancial.com.
***ALERT: Thomson Financial is discontinuing its Canada daily
commentary on Monday, October 2. Today's commentary will be the last
released. If you have any questions, or need further assistance, please
contact Linda Shea at Linda.Shea@thomson.com.***
SOURCE Thomson Financial Corporate Group
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