A.M. market numbers: August 20, 2009

| North American markets | International markets | Bonds | Currency | Commodities |

The Toronto stock market could be in for a higher open following big gains on the main Chinese market overnight, a day after Shanghai slumped almost five per cent.

Shares in aerospace company Bombardier Inc. (TSX:BBD.B) could be under pressure after it said its Aerospace division has terminated an order for Lear jets from Jet Republic that was worth up to US$1.5 billion.

It did not give a reason for terminating the order from the business jet provider.

U.S. futures lost much of their early momentum as employment data disappointed.

The Dow Jones industrials was off one point to 9,275 after the number of newly laid-off workers filing claims for unemployment benefits rose unexpectedly for the second straight week.

The Labour Department says the number of first-time jobless claims rose to a seasonally adjusted 576,000 last week, from a revised figure of 561,000.

Wall Street economists expected a drop to 550,000, according to a survey by Thomson Reuters.

The Nasdaq futures declined 1.8 points to 1,597 and the S&P 500 futures added a tenth of a point to 997.2.

Crude prices were slightly lower after data showing a big drawdown in U.S inventories last week sent oil up more than US$3 a barrel. On Thursday, the September crude contract on the New York Mercantile Exchange was down 32 cents to US$72.10.

Other commodities drifted higher with the December bullion contract ahead 70 cents to US$945.50 an ounce while September copper added two cents to US$2.78 a pound.

The Canadian dollar moved down 0.08 cent to 91.19 cents US as wholesale sales rose for the first time in nine months in June. Statistics Canada reports sales in current dollars rose 0.6% to $40.4 billion.

The signal for a mixed start to the trading day in North America comes near the end of a volatile week, with huge intraday swings in indexes as investors worry about how much of a role the debt-laden U.S. consumer can play in an economic recovery.

Another worry in the markets is that Chinese shares have begun to look a bit frothy. Many analysts consider the Chinese market a lead indicator for worldwide stocks – over the last couple of years, Chinese stocks have led where others have followed.

Before Thursday’s advance, the Shanghai index was down more than 20% from its early August peak, officially putting it into bear market territory, having rallied 60% since the start of the year.

Investors were getting more earnings reports from retailers and other companies that directly serve the consumer, and hoping for more insight into whether Americans might increase their spending and help fuel an economic recovery. The news from Sears Holdings Corp. wasn’t good; the company lost money in its second quarter – missing expectations – as it was dragged down by lower sales, store closings, and severance and pension plan costs.

The retailer that owns Sears and Kmart stores lost US$94 million while revenue fell 10% to US$10.55 billion. The retailer said it lost money in the second quarter as its sales fell and it closed stores.

Apparel retailer Gap Inc. also reports earnings Thursday.

In other corporate news, Enerplus Resources Fund (TSX:ERF.UN) has grabbed a toe-hold in the northeastern United States’ promising Marcellus shale gas play, paying US$406 million to three private U.S. natural gas companies for a stake in their properties.

The Calgary-based oil and gas trust said Wednesday it has struck agreements with Chief Oil & Gas LLC and its affiliates Chief Exploration & Development LLC and a limited partnership managed by Tug Hill Inc., to acquire part of their interests in the Marcellus play.

Overseas, Shanghai’s main index surged 4.5% while Japan’s Nikkei 225 stock average advanced 1.8%, while Hong Kong’s Hang Seng rose two per cent.

London’s FTSE 100 index gained 1.33%, Frankfurt’s DAX was ahead 1.16% and the Paris CAC 40 rose 1.48%.

(The Canadian Press)

North American markets

Back to Top

Dow Jones	9,279.16	+61.22 or +0.66%	+5.73%
S&P 500	996.46	+6.79 or +0.69%	+10.32%
NASDAQ	1,969.24	+13.32 or +0.68%	+24.87%
TSX Composite	10,685.83	+11.99 or +0.11%	+18.89%

International markets

Back to Top

	Open	Change	YTD
Nikkei	10,383.41	+179.41 or +1.76%	+15.18%
Hang Seng	20,328.86	+374.63 or +1.88%	+38.69%
SENSEX	15,012.32	+202.68 or +1.37%	+53.51%
FTSE 100	4,759.19	+69.52 or +1.48%	+5.22%
CAC 40	3,501.58	+51.24 or +1.49%	+6.85%
DAX	5,298.79	+66.81 or +1.28%	+8.58%

Bonds

Back to Top

Bonds	$Current	$Previous	%Yield
Cdn. 10-year bond	102.88	102.77	3.40
Cdn. 30-year bond	118.54	118.54	3.90
U.S. 10-year bond	101.37	100.92	3.46
U.S. 30-year bond	103.50	103.44	4.29

Currency

Back to Top

BoC Open	Today	Previous
Canadian $	0.9119	0.9127
US $	1.0966	1.0956

Euro Spot Rate	Today	Previous
Canadian $	0.6412	0.6412
Euro	1.5595	1.5595

Commodities

Back to Top

Gold	AM	PM
London Gold Fix ($US)	$ 943.50	$943.00

Oil	Open	Change
WTI Crude Future (US)	$72.29	-$0.13 or -0.18%

(08/20/09)