Market Minute

Update For The Week Ending June 10, 2011

• The Toronto stock market closed sharply Friday at the end of a negative week as rising worries about slowing economic conditions pushed stocks lower across all sectors.
• The S&P/TSX composite index tumbled 171.74 points to 13,084. A string of losses has left the TSX about 1,200 points below its highs for the year and more than 300 points below where it started 2011.
• A stronger U.S. currency helped push the Canadian dollar down 0.54 of a cent to 102.22 cents US even as data showed that just over 22,000 jobs were created last month, slightly above consensus estimates.
• Oil lost $2.64 to $99.29 US a barrel amid reports that Saudi Arabia is set to ramp up oil production.
• Oil had run up strongly over the last two days following a surprise decision by the OPEC cartel to maintain current production levels.
• The poor showing on the TSX extended across all sectors, with the financials group down 1.32%.
• The tech sector was also lower. Research In Motion dropped 67 cents even after it said Friday that it will launch its PlayBook tablet device in another 16 international markets over the next 30 days.
• Stocks retreated broadly on Friday, with the Dow ending below 12,000 for the first time in three months and the NASDAQ erasing all of its gains for the year.
• The Dow Jones industrial average closed at 11,951.91, down 172.45 points. The broader S&P 500 closed at 1270.98, down 18.02 points. Both U.S. indexes have fallen for six straight weeks - a record not seen since 2002. During the six-week slide, the S&P 500 has fallen a total 6.8 %, this includes this week's 2.24% tumble.
• The week is ending with traders cautious in the wake of a string of economic data that have pointed to a U.S. economy that is slowing faster than previously thought.
• The biggest drag on the blue-chip index on Friday was Travelers. The insurance company warned that it faced $1 billion in catastrophic losses related to the storms and floods in the Midwest and South, and said it would slow its stock buyback program.
• Friday's retreat comes a day after stocks snapped a six-day losing streak on Thursday.
• The gains offered some welcome relief for Wall Street investors, who have been feeling the heat during the longest losing streak since July 2010.

Web Links

• www.tmx.ca
• www.advisor.ca
• www.globefund.ca
• www.financialpost.com
• www.equitable.ca

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