Canadian Stocks Ebb In Early Trading

Canadian Stocks Ebb In Early Trading

Thursday, February 3, 2005, 10:15 AM EST: (Thomson Financial Corporate Group): Bay Street is slightly lower this morning, following an impressive run of recent gains. In corporate reports, an upbeat financial release from Teck Cominco is sending that stock higher. South of the border, Amazon.com's fourth-quarter earnings disappointed. Also, U.S. retailers' same-store sales figures and a batch of economic reports are in focus.

* The S&P/Toronto Stock Exchange Composite Index is slipping 2.71 points,
or 0.03%.

* Yesterday, the S&P/Toronto Stock Exchange Composite Index jumped 33.81
points, or 0.36%.

* Investors are rotating out of gold, technology and material shares, and
into mining, telecom and real estate issues.

* Within the gold group, Teck Cominco said that higher commodity prices
and increased metal production and sales led the firm to post
fourth-quarter earnings of C$1.34 a share from C$0.52 a share last year,
handily beating the mean Thomson First Call estimate of C$0.82 a share.
Revenues advanced to C$1.05 billion from C$716 million. For the year,
net income jumped to C$2.99 a share from C$0.68 a share. Teck Cominco
expects capital spending in 2005 of C$280 million. That stock is on the
rise.

* Kinross Gold is faltering; however, as the firm decided to obtain an
independent valuation of its goodwill as of December 31, 2003 and
December 31, 2004. The goodwill stems from its acquisition of mines in
the TVX and Echo Bay transactions. If the goodwill was impaired, the
firm will restate its financial statements for 2003. Subsequently,
Salman downgraded the firm to "hold" from "buy."

* Gold prices are slumping, amid greenback strength versus the euro.
Turning to research, Paradigm lifted Iamgold's price target to C$11 from
C$10. Meanwhile, oil prices continue to slide this morning, following
mixed U.S. inventory reports released yesterday.

* In legal news from the technology sector, Nortel Networks said it is
suing three of its former employees, including its former chief
executive, Frank Dunn. The firm is attempting to recover approximately
C$13 million in bonus money that was paid based on inflated profits.
Separately, Sierra Wireless said that "certain alleged securities class
action lawsuits" have been filed in the U.S. District Court for the
Southern District of New York; although, it has not been served with any
complaints.

* M&A activity continues to heat up in the U.S. The Wall Street Journal
reported that Qwest Communications is mulling a bid for MCI in reaction
to Monday's SBC-AT&T merger announcement. In other deal news,
Blockbuster launched a bid for Hollywood Entertainment in an attempt to
block the latter's purchase by Movie Gallery.

* January same-store sales figures are also in focus south of the border.
Wal-Mart Stores and Starbucks' sales were weaker than expected. Sears,
Roebuck and Co. said its comparable domestic store sales rose 0.8% in
January. Also, JC Penney's sales rose a greater-than-expected 3.3%,
leading the firm to raise its fourth-quarter earnings outlook.

* On the U.S. economic front, advanced fourth-quarter productivity rose
0.8%, versus a 1.8% gain in the prior period. A 1.2% gain had been
expected. Also, weekly initial jobless claims dropped by 9,000 to
316,000, versus expectations for a 5,000 increase. December factory
orders edged up 0.3%, compared to a revised 1.4% leap in November.
Finally, the January ISM services index fell to 59.2 from 63.9 in the
prior reading.

-- Linda.Shea@thomson.com; Thomson Financial Corporate Group



This is Thomson Financial Corporate Group's 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 fingertips, please visit http://www.irchannel.com/. If you have any questions 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/.

PRNewswire -- Feb. 3


Source: Thomson Financial Corporate Group

Web site: http://www.thomsonfinancial.com/
http://www.irchannel.com/


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