Markets

Canada Stocks Overcome Bad Start To Close Up 25 Pts; Bombardier, Blackberry Show The Way

Canada's main stock market, the Toronto Stock Exchange, overcame a bad start to the day that saw it down 35 points mid-afternoon. Steadily it ate into these losses and eventually made it back to par with around an hour to go. But it wasn't done yet, and put in an even more impressive showing over the run in to end the session up 25 points, despite running out of breath right at the death.

For the second straight day the most active stocks were heavyweights Blackberry (BB.TO) and Bombardier (BBD-B.TO), although Bombardier ended up gaining just 1 cent for the more than 5 million shares traded.

BlackBerry shares on Monday closed off 4.5% - but at least recovered after going below $14 earlier - with 10 million shares traded. Today, the stock recovered more than 1% with nearly 5 million shares changing hands. Investors and traders await its Q4 on Thursday.

National Bank in its preview said on key takeaways: "Our focus areas on conf call - speed of legacy subscriber base decline and incremental data on services revenue, how are BB7 shipments and ASP holding in or declining, Z10 shipments and Q1 guidance, ASP for Z10 given recent price cuts at Rogers and Bell, timing of Q10 launch, gross margin, inventory build, cash burn and restructuring update. We expect an upbeat conf call; buyers beware it is too early to gage sell-through. Management is going a better job at promoting early Z10 successes (e.g., press releasing a record one-million unit order, Thorsten commenting on converting iOS and Android users to the Z10) and we expect a bullish tone on the conference call. Given our thesis of a fast declining paying BB7 base and an unprofitable stand-alone hardware business, we would continue to avoid this stock. Remain Underperform, US$10/share target."

Today, Blackberry announced the addition of new television content for BlackBerry 10 customers in the US. TV shows from PBS, Univision and Viacom are now a part of the video catalog available for sale on the BlackBerry World storefront, bringing such favorites as COMEDY CENTRAL, MTV, Nickelodeon, PBS's Masterpiece Classic Downton Abbey series and Spanish telenovelas.

MarketWatch reported: "Gold futures on Tuesday marked their third straight decline as a jump in U.S. durable goods orders helped dull the metal's appeal as a safe haven. Prices also closed below $1,600 an ounce for the first time since March 15." It said: "April gold lost $8.80, or 0.6%, to settle at $1,595.70 an ounce on the Comex division of the New York Mercantile Exchange."

MarketWatch also reported: "Oil futures settled above $96 a barrel on Tuesday to score their highest close in five weeks, with optimism over energy demand fed by a jump in U.S. durable goods orders." It said: "May crude rose $1.53, or 1.6%, to end at $96.34 a barrel on the New York Mercantile Exchange. The settlement was the highest for a most-active contract since Feb. 19, according to FactSet data."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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