VANCOUVER, BC (June 1, 2011) Dominion Lending Centres Clearlease Reports June 1, 2011,
The Toronto stock market appeared headed for a flat open Wednesday as oil prices backed off in the wake of disappointing U.S. employment data.
The TSX could find some lift from the industrials sector after transportation giant Bombardier Inc. (TSX:BBD.B) beat expectations. First-quarter profits rose to US$220 million while revenues increased nine per cent. The company, which reports in U.S. dollars, said net income came in at 12 cents per share, two cents better than analyst forecasts.
The Canadian dollar continued to move higher, up 0.02 of a cent to 103.26 cents US. The currency surged almost a cent Tuesday after the Bank of Canada signalled that higher interest rates are on the way, perhaps as early as late summer.
U.S. futures were lower after the May survey from the private payrolls firm ADP showed that the private sector created only 38,000 jobs during April. That was far less than analyst estimates which called for about 175,000 new jobs, about the same reading as April.
The data came out two days before the release of the U.S. government’s non-farm payrolls report for May.
Economists expected that Friday’s government data will show that around 200,000 jobs were added during May, slightly down on April’s 244,000 increase.
The Dow Jones industrial futures moved down 41 points to 12,517, the Nasdaq futures eased 9.2 points to 2,362.5 while the S&P 500 futures were off 4.7 points to 1,339.2.
Oil prices further weakened following the release of the ADP data after a weak U.S. dollar pushed crude up more than US$2 on Tuesday. The July contract on the New York Mercantile Exchange dipped 29 cents to US$102.41 a barrel.
Precious metal prices weakened with the August gold contract in New York down $1.30 to US$1,534.60 an ounce.
Base metals were lower after data showed China’s manufacturing sector easing in April. The state-affiliated China Federation of Logistics and Purchasing reported that its purchasing managers index, or PMI, fell to 52.9 in April, down from 53.4 in March. The July copper contract slipped three cents to US$4.15 a pound. China is the world’s biggest consumer of copper.
Investors also looked to important manufacturing data which will be released later in the morning.
Traders looked to see the Institute for Supply Management’s May manufacturing index to drop to around 57 from the previous month’s 60.4, providing further evidence that the U.S. recovery is slowing down.
Concerns over the U.S. economic recovery and Europe’s debt crisis, particularly whether Greece will get more emergency loans, have dominated market attention over recent weeks.
Earlier in Asia, Japan’s Nikkei 225 rose 0.3 per cent after Bank of Japan Governor Masaaki Shirakawa said in a speech that supply and electricity disruptions caused by the March 11 earthquake and tsunami were easing. The economy could stage a moderate recovery starting in the second half of fiscal 2011, he said.
Elsewhere, South Korea’s Kospi index slipped less than 0.1 per cent, Hong Kong’s Hang Seng index drifted 0.2 per cent lower while mainland China’s Shanghai Composite Index dropped 0.3 per cent. London’s FTSE 100 index drifted 0.19 per cent lower, Frankfurt’s DAX was down 0.16 per cent and the Paris CAC 40 was off 0.05 per cent.
In other earnings news, clothing retailer Reitmans (Canada) Ltd. (TSX:RET) earned $624,000 or a penny per share in the quarter ended April 30. That compared with a profit of $15.8 million or 23 cents per share a year ago. Sales in the quarter slipped to $219.3 million from $235.7 million, while same store sales fell 8.7 per cent due to increased discounts and promotions.
Chorus Aviation Inc. (TSX:CHR.B), the Halifax airline formerly known as Jazz Air, said Tuesday its net profits fell to $14.7 million or 12 cents a share for the three months ended March 31. That compared with earnings of $16.4 million a year earlier. Operating revenues rose nearly 25 per cent to $443 million from $355.4 million.
Elsewhere on the corporate front, investors will be looking to Intact Financial Corp. (TSX:IFC), which announced Tuesday that it is buying insurer AXA Canada for $2.6 billion in cash. Intact shares were halted late in the session and last traded at $49.77, down 40 cents from Monday.
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About Dominion Lending Centres Clearlease
Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.
Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.
You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.
Contact DLC Clearlease.com:
Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. Alexander Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 199
eMail: [email protected]
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