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Stockhouse @ the Bell: Stocks fall as bank earnings disappoint (T.RY) (T.TD), (T.PD) takes a dive

Stockhouse Editorial
0 Comments| December 5, 2013


Today in the markets

U.S. stocks declined Thursday amid concerns about what the Federal Reserve will do with a key stimulus measure grew in the wake of more positive economic data.

Canadian stocks were sharply lower, pressured by the financial sector as the latest batch of bank earnings disappointed, giving traders an excuse to take some more profits from a sector that has delivered solid returns all year.

The S&P/TSX Composite was down 104.52 points to 13,200.40, while the TSX Venture Exchange edged down 4.78 points to close at 914.78.

Active stocks included J.C. Penney Company Inc. (NYSE: JCP, Stock Forum). It dropped 8.4% to $8.85 after hedge-fund manager J. Kyle Bass told Bloomberg Television that he had sold his stake in the company. Bass is the founder of Hayman Capital Management. He disclosed in September that Hayman held 11.4 million shares in the retailer, or 5.2%.

Microsoft Corp. (NASDAQ: MSFT, Stock Forum) was down almost 2.4% to $38 following a Bloomberg report that said Ford Motor Co. (NYSE: F, Stock Forum) CEO Alan Mulally, who has been widely tipped as a prime candidate to become Microsoft’s new CEO, is not leaving Ford until the end of next year.

Newmont Mining Corp. (NYSE: NEM, Stock Forum) was off 2.8% to $23.20 in reaction to a lower gold price.
In Canada, Royal Bank of Canada (TSX: T.RY, Stock Forum) was off 1.2% to $68.17 after Canada’s leading banking group said had $2.119 billion of quarterly net income, up 11 per cent from last year.

Adjusted diluted earnings per share was $1.42, four cents higher than analysts had forecast. But its shares were down as Barclays analyst John Aiken pointed to both the wealth management and retail banking divisions as performing weaker than he expected.

RBC also announced that president and chief executive Gordon Nixon will retire next summer.

Canadian Imperial Bank of Commerce (TSX: T.CM, Stock Forum) shares dropped 1.4% to $88.82 as it reported a profit of $836 million in net income in its latest quarter, down from $852 million a year ago. After adjusting for one-time items, earnings were $2.22 per share, seven cents ahead of estimates and up 8.8 per cent from a year ago.

Analysts pointed out that despite the pressure on the bank stocks Thursday the financial sector was still up almost 20 per cent year to date.

Toronto-Dominion Bank (TSX: T.TD, Stock Forum) had $1.622 billion of net income in the fourth quarter, up from last year but below analyst estimates. The shares fell 1.4% to $94.40.

Precision Drilling Corp. (TSX: T.PD, Stock Forum) shares were down by almost 10% Thursday after the company commented on recent trading activity, saying Alberta Investment Management Company has sold its entire equity stake in the company, comprised of 56 million shares.

The stock reacted by tumbling 9.1% to $9.33, leaving a market cap of $2.6 billion, based on 276.9 million shares outstanding. The 52-week range is $11.53 and $7.26.

For news about small stocks that made big moves in Thursday’s trading, please read the
Stockhouse Canadian Small and Micro-cap Stock Report

Tags: GOLD BANKS - GLOBAL OIL & GAS EQUIPMENT & SERVICES ENERGY

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