The Toronto stock market trimmed losses Wednesday after the U.S. Federal Reserve said it would leave interest rates “exceptionally low” for “an extended period.” – Dominion Lending Centres Clearlease

The Toronto stock market trimmed losses Wednesday after the U.S. Federal Reserve said it would leave interest rates “exceptionally low” for “an extended period.” – Dominion Lending Centres Clearlease

VANCOUVER, BRITISH COLUMBIA – (April 27, 2011) Clearlease Reports The Toronto stock market trimmed losses Wednesday after the U.S. Federal Reserve said it would leave interest rates “exceptionally low” for “an extended period.”

The Fed left its key lending rate unchanged at 0.25 per cent, an emergency low, while it signalled that its $600 billion Treasury bond-buying program will end in June as planned because the economy has strengthened and companies are starting to hire more.

“The economic recovery is proceeding at a moderate pace and overall conditions of the labour market are improving gradually,” it said in a statement.

The S&P/TSX composite index was down 85.9 points to 13,823.2 after earlier posting triple digit losses as investors sold off stocks in the materials, base metals mining and energy sectors. The TSX Venture Exchange lost 6.5 points to 2,225.9.

The Canadian dollar was down 0.25 of a cent to 104.81 cents US, paring an earlier loss of nearly half a cent as gold prices surged after the Fed announcement.

Federal Reserve chairman Ben Bernanke is holding a press conference later Wednesday that could have further impact on currencies and markets worldwide.

The news conference, the first of three this year, is part of a long-standing Bernanke campaign to make the central bank more transparent and publicly accessible. Bernanke is the first Federal Reserve chief to begin a series of regular news conferences.

After a solid first-quarter earnings season so far in the U.S., investors might be taking profits given the uncertainty over the effects of Bernanke’s comments on markets and the broader economy, said Pat McHugh, senior portfolio manager at Manulife Asset Management.

“My guess is so much money has been made that I suspect people are just a little bit concerned about what Mr. Bernanke might be saying and maybe taking some money off might be worthwhile.”

Uncertainty surrounding Bernanke’s speech and falling oil prices pushed the TSX into the red — overshadowing mostly positive earnings from Canadian companies, McHugh said.

It is another busy earnings day with many resource companies reporting improved earnings Wednesday morning.

Barrick Gold Corp. (TSX:ABX) said first-quarter net earnings rose 22 per cent to $1 billion, or $1 per share, compared to $820 million, or 82 cents per share, a year earlier. Analysts had predicted an average of $1.04 earnings per share. Shares were up four cent to $47.79.

Husky Energy Inc. booked a 70 per cent increase in first-quarter profits to $626 million, or 70 cents per share, compared with $368 million, or 43 cents per share in the same period a year earlier. Analysts polled by Thomson Reuters were on average expecting earnings of 52 cents per share. Shares were up 27 cents to $28.76.

Sherritt International Corp. (TSX:S) profits soared 116 per cent to $63.6 million or 22 cents per share in the first quarter, compared with $29.4 million or 10 cents per share in the same 2010 quarter. Shares gained four cents to $7.79.

Tembec (TSX:TMB) posted a second-quarter profit of $7 million, or seven cents per share, compared to nil in the same period of 2010. Sales declined to $452 million from $476 million. Shares fell gained four cents to $5.37.

Shoppers Drug Mart Corporation (TSX:SC) reports its first quarter net profits fell to $118 million or 54 cents per share from $122 million or 56 cents in the same 2010 period. First quarter sales increased 2.7 per cent to more than $2.3 billion. Shares fell 26 cents to $41.16.

Canadian National Railway (TSX:CNR) shares were up 50 to $71.50 after it reported Tuesday adjusted net income was $414 million, or 90 cents a share, above analyst expectations.

Rogers Communications Inc. (TSX:RCI.B) said Wednesday it’s rolling out an even faster wireless network this year to serve its mobile phone and mobile Internet users. It reported late Tuesday adjusted net income was 76 cents per share, beating analysts’ expectations for 72 cents per share. Rogers shares gained 58 cents to $35.32 Wednesday.

Meanwhile, oil prices gained 33 cents to US$112.54 a barrel on the New York Mercantile Exchange. The energy sector on the TSX lost 0.8 per cent with shares in Canadian Natural Resources (TSX:CNQ) down 36 cents at C$43.50.

Gold prices rose $7.10 to $1,510.70 per ounce.

Copper prices fell nine cents to $4.23 a pound on reports that China may make additional moves to rein in its economy and slow resource demand. The base metals mining sector was one of the biggest decliners on the TSX, down one per cent, with shares in Teck Resources Ltd. (TSX:TCK.B) down C$1.29 to $51.90.

Meanwhile, the Conference Board of Canada said Canadians are feeling better about their economic prospects — especially westerners. The think-tank’s consumer confidence index rose four points to 87.7 this month, largely due to improved job prospects and willingness to make large purchases.

While an improvement over March, the reading is still well below pre-recession levels.

Wall Street markets rebounded into positive territory after the Fed announcement that ended a two-day meeting.

The Dow Jones industrial average gained 40.5 points to 12,635.9, while the Nasdaq index added 3.87 points to 2,851.41 and the broader S&P 500 index gained 1.1 points to 1,348.35.

The Fed has been making bond purchases intended to lower loan rates, encouraging spending and boost stock prices. But critics worried that the purchases would feed inflation. It downplayed inflation risks. It acknowledged a spike in oil prices, but concluded that the pickup in inflation will be temporary.

In U.S. corporate news, numerous large players like eBay and Starbucks are releasing their latest earnings Wednesday. Before markets opened, big names such as Boeing Co. and Whirlpool Corp. reported better-than-expected earnings.

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About Dominion Lending Centres Clearlease

Dominion Lending Centres Clearlease Commercial (DLC Clearlease/ 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

Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. A. Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
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