Market News June 12, 2007

Market closes for Tuesday, June 12, 2007:

Dow Jones 13,482.35 +187.34 or +1.41% YTD: +8.18%
S&P 500 1,515.67 +22.67 or +1.52% YTD: +6.87%
NASDAQ 2,582.31 +32.54 or +1.28% YTD: +6.92%
TSX COMP 13,859.52 +135.19 or +0.99% YTD: +7.37%
TSX VENT 3126.89 -3.03
Canadian dollar $Cdn. $U.S.
BoC Closing rate 1.0665 0.9376
Previous BoC closing rate 1.0668 0.9374

Cdn. Dollar/Euro Spot Rate 1.4188 0.7048
Gold AM PM
London Gold Fix (US) $644.10 $647.65

Spot Crude Oil Future(US) $66.26 +$0.91 or +1.39

NEWS
Stock markets racked up strong gains as traders got good news on the interest rate front, retail data came in better than expected and the U.S. Federal Reserve’s latest reading on the economy encouraged investors hoping the worst is over after a week of selling sparked by interest rate worries.

“I think we’ve certainly had a fair selloff in the last week or so, so obviously people are seeing some value at this point,” said Peter Buchanan at CIBC World Markets.

New York’s Dow Jones industrial average jumped 187.34 points to 13,482.35 after the U.S. Commerce Department reported retail sales surged 1.4% in May over April, double the increase analysts had expected.

While the report eases concerns that consumer spending is faltering, strong economic numbers tend to stoke fears that interest rates will rise to restrain inflation.

“People were concerned about interest rate hikes earlier but the U.S. retail numbers I think show that the U.S. economy and particular the consumer is still very up and that has certainly positive repercussions for our economy and also for corporate profits,” added Buchanan.

The Canadian dollar inched up 0.03 a US cent to 93.76 cents US after Bank of Canada governor David Dodge said the currency may have risen higher than economic factors warrant.

Dodge also repeated his warning of last month that with inflation persisting and the economy growing above what the bank sees as its sustainable capacity, he may have to increase the overnight rate above the current 4.25% in the next scheduled rate-setting decision next month.

Statistics Canada reported that manufacturing shipments edged down 0.6% in April to $49.7 billion, following a strong 3% advance during March. Excluding the motor vehicle sector, factory shipments increased 1% in April.

U.S. Treasury bond yields, whose advance caused a pullback in stocks last week and again Tuesday, spiked early Wednesday before easing back. The benchmark 10-year Treasury yield ended the day at 5.2% after earlier hitting a five-year high of 5.3% as traders thought the bond selloff of the last week was getting overdone.

“It’s hard to say what’s going to stick here and going forward I wouldn’t be shocked to see yields possibly even rising again going forward,” said Eric Lascelles, strategist at TD Securities. The Canadian 10-year yield also moved back from the highs of the session to 4.69%, down from 4.73%.

The bond market prodded Canadian residential mortgage rates upward for the fourth time in less than a month. Royal Bank of Canada is raising posted rates by between 0.05 and 0.20 percentage point, depending on the term. The five-year closed rate goes up 0.15 point to 7.44%, an increase of 0.85 point since mid-May.

Also, the Fed’s latest take on the economy showed accelerated growth and inflation seems to be contained despite high energy prices. Its so-called Beige Book showed that factory production was up in a majority of districts, an improvement from the previous survey that found manufacturing was slow in most Fed districts.

On the TSX, the financials sector was the strongest advancer, up 1.1% with TD Bank up 92 cents to $73.18 and Royal Bank headed 71 cents higher to $57.06.

On the TSX, advances beat declines 855 to 760 with 232 unchanged as 338.1 million shares traded worth $6.5 billion. (Canadian Press)

TSX
Most Active By Trading Volume*

Symbol Price $ Change % Change Volume
LIM 27.220 +0.110 +0.41 9,221,402
BWR 2.650 +0.040 +1.53 7,547,261
TLM 21.300 +0.160 +0.76 6,670,098
A 3.020 +0.110 +3.78 6,256,878
BBD.B 6.210 +0.040 +0.65 5,852,610
PDN 7.590 -0.130 -1.68 5,710,188
FNI 1.190 -0.020 -1.65 5,621,023
NXY 31.610 -0.040 -0.13 5,188,331
WTO 34.420 -1.080 -3.04 4,669,488
XIU 80.040 +1.000 +1.27 4,483,994
RNG 5.410 +0.160 +3.05 4,017,246
TCK.B 47.850 +1.860 +4.04 3,664,713
ARG 2.710 +0.190 +7.54 3,599,678
EQN 3.300 +0.140 +4.43 3,357,513
SXR 14.510 -0.020 -0.14 3,209,976

TSX VENTURE
Most Active By Trading Volume*

Symbol Price $ Change % Change Volume
NAI 0.395 +0.075 +23.44 7,699,346
GXL 0.240 -0.005 -2.04 4,311,950
USA 0.970 -0.030 -3.00 3,661,080
GCR 3.520 -0.230 -6.13 3,167,695
RPT 0.600 +0.020 +3.45 2,850,000
TME 0.540 -0.130 -19.40 2,574,428
SDN 0.290 -0.005 -1.69 2,263,150
WWF 0.225 +0.040 +21.62 1,800,750
BDO 0.680 -0.050 -6.85 1,787,000
CEO 0.700 -0.050 -6.67 1,776,000
MEI.A 0.070 -0.010 -12.50 1,746,000
RBX 0.255 -0.025 -8.93 1,622,200
PCM 0.120 +0.010 +9.09 1,503,686
IMR 0.420 -0.005 -1.18 1,488,450
SAU 0.065 +0.010 +18.18 1,281,000

TRADING HALTS/RESUMPTIONS
Trade Resumption – Zongshen Pem Pwr Sys Inc. – ZPP
Trading Halt – Globel Direct, Inc. – GBD , Pending News
Trading Halt/Trade Resumption – GLR Resources – GRS
Trading Halt – Nextron Corporation – NXT , Pending News
Trading Halt – Zongshen Pem Power Systems Inc. – ZPP , Pending Company Contact
Trade Resumption – In-Touch Survey Systems Ltd. – INX
Trade Resumption – Trinidad Energy Services Income Trust – TDG.UN

Sources include Advisors.ca, TSX.com, Canadian Press, Yahoo Finance,
Stockhouse.com
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