TSX rises, Dow slides in early trading
<a ref=www.thestar.com>The Toronto Star Apr. 21, 2003. 11:47 AM MALCOLM MORRISON CANADIAN PRESS
Stocks were mixed this morning with New York markets giving up initial small gains that followed positive quarterly reports from a pair of Dow components.
Information technology stocks helped keep Toronto's S&P/TSX composite index in positive territory, up 19.18 points to 6,544.86 at midmorning after gaining 1.5 per cent last week.
The Canadian dollar was down 0.19 cent to 68.69 cents (U.S.).
New York's Dow Jones industrial average edged 10.64 points lower to 8,327.01 at midmorning, after rising 1.6 per cent on the week.
The Nasdaq slipped 7.04 points to 1,418.46; the tech-laden index had climbed 4.9 per cent last week. The S&P 500 index slipped 0.98 point to 892.60.
3M, best known for Scotch Tape and Post-it Notes, said its quarterly profit rose to $502 million (U.S.) compared with $452 million a year ago. Sales were up 11 per cent and the company reaffirmed its earnings outlook for 2003. Its shares nudged 70 cents higher at $130.68.
Shares in American drug giant Merck jumped $1.95 to $57.84 after it earned $1.71 billion, compared with $1.63 billion a year ago, in line with expectations. Sales rose 10 per cent, slightly ahead of expectations.
Whirlpool gained 74 cents to $54.42 (U.S.) after the appliance maker notched a first-quarter profit but lowered its 2003 outlook, citing the uncertain economy.
Last week's modest gains came after a mixed presentation of corporate reports. So far, earnings for the first three months of the year have been mixed, with disappointments often attributed to the impact of the war in Iraq and to unusually cold weather.
One area unlikely to cause disappointment is the Canadian energy companies. The top oil and gas companies start reporting Tuesday and soaring prices because of the Iraq war, civil unrest in Venezuela and a long, bitter North American winter will result in substantially higher profits.
Energy stocks were higher in anticipation of those reports, with Petro-Canada ahead 52 cents to $48.10 and Shell Canada up 49 cents to $47.85.
Also supporting energy stocks was an oil price stubbornly holding above the $30 (U.S.) a barrel level. Crude futures were 18 cents lower at $30.37 (U.S.) a barrel in New York, ahead of an OPEC meeting Thursday which is expected to tighten crude supplies.
Nevsun Resources soared 49 cents to $3.57. The Vancouver-based mine explorer's shares had dropped last week after one of its geologists was murdered near its base camp in Eritrea.
All sectors of the Toronto stock market were higher except financials.
Information technology led the advance. Nortel Networks was ahead seven cents to $3.56 and Celestica added 28 cents to $15.63.
The gold sector also lent support as the price of the metal climbed $3.20 to $330.20 (U.S.) an ounce in New York. Kinross Gold gained 25 cents to $9.40 and Placer Dome was ahead 20 cents to $14.70.
Other active Toronto stocks included Alcan, up 45 cents to $44.15 and Tour operator Transat A.T., off five cents to $4.15.
Monday's Canadian corporate reporters include Methanex, the world's largest producer of methanol, and base-metal miner Teck Cominco.
Other big Canadian companies reporting this week include Canadian National Railway, CP Rail, steelmakers Dofasco and Stelco, miner Noranda, CP Ships, software maker Open Text, Goldcorp Inc., Manulife Financial and printer Quebecor World.
On Friday, Air Canada is scheduled to report, as the airline continues to operate under protection from creditors, and faces a court hearing Tuesday at which unions, suppliers and creditors are expected to file motions seeking to protect their positions. Air Canada declined three cents to $1.15.
In economic news, a key indicator of where economic activity in the United States is heading fell in March. The Conference Board said its index of leading economic indicators fell by 0.2 points last month to 110.6, pushed down by worries over higher oil prices, the war and potential terrorist attacks.
Most overseas financial markets were closed for Easter Monday, but Tokyo's Nikkei stock average gained 94.57 points to 7,969.08.
Singapore's Straits Times index ended at a three-week low on worries about SARS, as the Health Ministry moved to quarantine all 2,400 workers at the city-state's largest wholesale vegetable market.