TSX recovers from Monday’s low, Wall Street down on earnings
The Toronto Stock Exchange managed to end the Tuesday session with slim losses as commodity prices showed some improvement. Wall Street was lower but hinged largely on disappointing earnings from IBM in the previous session and some less-than-thrilling results from some other blue chip companies. Apple results were awaited after the closing bell. Commodity prices and regional earnings were in focus in Asia, where most major markets managed gains; and in Europe where the major indexes closed lower.
The S&P/TSX Composite Index closed down 49.31 (0.34 per cent)
The NYSE closed lower (Dow down 181.1 / 1.0 per cent)
Oil is trending higher (Brent $57.10, WTI $50.59 at 4.15pm)
Gold is trending lower
The loonie is valued at U$0.7718 (at 4.15pm)
Federal finances OK, provincial data not so good
Ottawa’s finances are in good shape and look stable for the long-term but the official watchdog has expressed concern about regional figures. The Office of the Parliamentary Budget Officer says that health spending is an area where the provinces and municipalities are likely to suffer a shortfall due to an aging population. The report suggests that regional taxes may have to rise to keep up with costs.
Blackberry sheds more jobs
The restructuring of Blackberry continues to be a painful experience for employees with the firm announcing another round of job cuts Tuesday. The Globe and Mail reports that no numbers have been released by the Ontario firm and that some have been re-deployed within the company but some workers have been laid off.
Mandatory savings increases will do little for retirement funds
The Fraser Institute says that increasing mandatory contributions to the Canada Pension Plan will have little effect on overall retirement funds. Its study shows that Canadians will simply reduce their private savings to cover the extra payments. This outlook is based on analysis of savings from the late 1990s and into the following decade.
Burger chain increases sales, dividend
Burger chain A&W will be making a larger dividend payment to shareholders as sales and profits ticked higher. The firm posted quarterly revenue of $249.1 million, a rise of 12.8 per cent from a year earlier. For restaurants open more than a year sales were up 8.9 per cent. Profits increased from $4.2 million in the second quarter of 2014 to $7.2 million in the same period this year.