Tech, Gold Stocks Provide Subtle Support On Bay Street

Tech, Gold Stocks Provide Subtle Support On Bay Street Friday, January 21, 2005, 10:15 AM EST (Thomson Financial Corporate Group): Toronto stocks are edging higher this morning, supported by technology, gold and material issues. Greenback weakness is aiding the precious metal. Meanwhile, some upbeat U.S. chip reports are boosting the tech sectors on both sides of the border. Also, financial releases from Dow members General Electric and United Technologies are pleasing traders. Still, Bombardier is weighing on industrial issues. * The S&P/Toronto Stock Exchange Composite Index is rising 12.41 points, or 0.14%. * Yesterday, the S&P/Toronto Stock Exchange Composite Index gave up 31.37 points, or 0.34%. * Technology stocks are receiving support from their U.S. counterparts. In chip reports, KLA-Tencor's second-quarter earnings per share jumped to US$0.61 from last year's US$0.22, well above the mean forecast of US$0.59, as provided by Thomson First Call. Also, Xilinx posted in-line results. * Oil prices are rebounding this morning, following recent declines. OPEC boosted its demand outlook for the first and second quarters due to demand from China and supply problems from non-OPEC countries. Turning to corporate news, Suncor Energy said last night that it will not return to full production at its oil sands facility until the third quarter. The firm endured a fire earlier this month at the Fort McMurray, Alberta, facility. Subsequently, Canaccord downgraded the firm to "hold" from "buy." * Meanwhile, gold shares and the yellow metal are edging higher, following greenback weakness versus the euro. * Turning to material reports, Nova Chemicals is set to receive a cash payment of approximately US$110 million in connection to the resolution of a tax dispute. The dispute stems from the deductibility of foreign taxes in certain returns filed with the U.S. Internal Revenue Service prior to 1982. Also, UBS upgraded Nova to "neutral" from "reduce" and lifted its price target to US$48 from US$40. * Elsewhere, TD downgraded Tembec to "reduce" from "hold" and lowered its price target to C$6.50 from C$7.75. Yesterday, the firm said it swung to a first-quarter loss from a year-earlier profit. * Industrial stocks are heading lower this morning. Bombardier announced a reorganization of its corporate office and the decentralization of certain functional responsibilities to Bombardier Aerospace and Bombardier Transportation. As a result, 60 jobs will be cut. * South of the border, General Electric's fourth-quarter profits advanced on an 18% jump in sales. The firm also aims to achieve 10% to 15% earnings growth in 2005. Another Dow member, United Technologies, reported stronger fourth-quarter profits and backed its 2005 view. * In economic reports, wholesale sales rose by a larger-than-expected 0.5% in November to a seasonally adjusted C$37.89 billion from an upwardly revised C$37.72 billion in October. -- 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 -- Jan. 21 Source: Thomson Financial Corporate Group Web site: http://www.thomsonfinancial.com/ http://www.irchannel.com/ ------- Profile: International Entertainment