“They Can Because They Think They Can” -Virgil
Markets Sweet on Valentine’s Day
Rising gold stocks helped push the Toronto stock market higher Friday as traders digested a mixed bag of economic indicators. The S&P/TSX composite index was up 58.15 points to 14,059.8. The Canadian dollar was down 0.01 of a cent at 91.09 cents US as manufacturing shipments declined 0.9% during December. It was the first decline since last August. New York indexes turned mainly higher after the latest reading on U.S. consumer confidence, the University of Michigan’s index, was unchanged at 81.2. A slight drop had been expected. Another report showed that harsh winter weather led to U.S. factory output falling by 0.8% during January. The Dow Jones industrials moved up 63.35 points to 16,090.94, the Nasdaq was 9.56 points lower to 4,231.12 while the S&P 500 index was ahead 3.38 points to 1,833.21. Elsewhere, China’s consumer prices rose 2.5% over a year earlier in January, unchanged from December. Traders found the inflation data encouraging because it leaves the Chinese government room to stimulate the world’s second-biggest economy. Other data showed that economic growth across the eurozone was stronger than expected as gross domestic product grew by 0.3% in the fourth quarter from the previous quarter. That adds up to an annualized rate of about 1.2%. Analysts had been looking for fourth-quarter growth of 0.2%.
RCMP Arrest 7 in Alleged CRA Fraud
The RCMP has arrested seven people as part of alleged fraud that involved Quebec Canada Revenue Agency employees. Charges laid include bribery of public officers, conspiracy, fraud, breach of trust by a public officer and fraud against the government. Five of the accused allegedly received commissions on tax credits that were obtained through fraudulent means. The Mounties say that three of those five were active CRA officials at the time the alleged offences took place. The five are scheduled to appear in court in Montreal on April 7. One of the five, plus two other people have also been charged in a separate component of the investigation and will appear in court on March 19. The investigation, known as Project Coche, began in 2008 and resulted in the arrest of 15 people, including eight former CRA officials. National Revenue Minister Kerry-Lynne Findlay says any misconduct by agency officials is “completely unacceptable.” She adds, “CRA will continue to investigate any allegations of misconduct and continue to cooperate with the RCMP to ensure that the individuals responsible face the full force of the law.”
Market Update for February 14 2014
The TSX closed at 14055, up 267 points or 1.94% over the past week. YTD the TSX is up 3.18%.
The DOW closed at 16154, up 360 points or 2.28% over the past week.YTD the DOW is down -2.55%.
The S&P closed at 1839, up 42 points or 2.34% over the past week.YTD the S&P is down -0.49%.
The Nasdaq closed at 4244, up 118 points or 2.86% over the past week.YTD the Nasdaq is up 1.60%.
Gold closed at 1319, up 52.00 points or 4.10% over the past week.YTD gold is up 9.55%.
Oil closed at 92.93, down -7.03 points or -7.03% over the past week.YTD oil is down -5.76%.
The USD/CAD closed at 1.0988, down -0.0052 points or -0.47% over the past week.YTD the USD/CAD is up 3.35%.
Sources: Bloomberg; Investment Executive; advisor.ca.