Mid-morning report: stocks up on positive manufacturing data

Stockhouse Editorial
0 Comments| December 16, 2013


The TSX composite was higher, gaining 81.91 points to 13,207.61 in mid-morning trading on Monday. The Dow was up 122.95 to 15,878.31, while NASDAQ rose 24.50 to 4,025.48.

Sun Life Financial (TSX: T.SLF, Stock Forum) says 2013 wasn't a great year financially for most Canadians. An Ipsos Reid survey conducted in November for Sun Life found that, overall, 57% of Canadians felt they were not any better off financially than they were a year ago.

Two more BlackBerry Ltd. (TSX: T.BB, Stock Forum) executives are headed for the door under sweeping changes from its new leader. The smartphone says Rick Costanzo, executive vice-president of global sales, and Chris Wormald, vice-president of strategic alliances, will leave their roles. The departures come as interim chief executive John Chen pushes ahead with plans to reshape the money-losing Canadian technology company. BlackBerry was up 1.3% and was trading at $6.50 a share in mid-morning trading.

In the U.S., Fed policy makers have been scrutinizing data to determine whether economic growth is robust enough to withstand the withdrawal of some monetary support. Data today showed the Federal Reserve Bank of New York’s general economic index rose less than forecast in December.

The central bank has said it will hold its target interest rate near zero “at least as long as” unemployment exceeds 6.5%, so long as the outlook for inflation is no higher than 2.5%. Unemployment fell to a five-year low of 7.0% last month, while inflation is running below the Fed’s target of 2.0%.

In the eurozone, the manufacturing Purchasing Managers Index beat expectations, rising to a 31-month high of 52.7 from 51.6 in November. At the same time, the services PMI slipped to a four-month low of 51 from 51.2.

Data showed that China's manufacturing sector grew at a slightly slower pace in December, according to a preliminary survey by HSBC. Its flash purchasing managers' index slowed to a three-month low of 50.

However, the reading was still high enough to indicate that China's economy is continuing to recover since slowing to 7.5% growth in the second quarter.

The price of gold was up US$4.62 to US$1,243.30 an ounce, while silver gained US$0.18 to U$19.89 an ounce.
 

Tags: COMMUNICATION EQUIPMENT TECHNOLOGY

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