Toronto stocks are lower in early trading, but have recovered a good portion of an early slump. Toronto's main index is following the lead of stocks around the globe, amid fears the swine flu breakout could slow economic recovery.
The S&P/TSX Composite Index has declined 83.88 points or 0.86% to move at 9,466.91. A decline would be the first in five sessions for the index.
While the flu does seem to be spreading, many doctors agree that the swine flu is no more panic worthy than any other breakout of the human flu during flu season.
Meanwhile, General Motors (GM) presented its updated Viability Plan, which will focus on 4 core brands in U.S. to cut costs. The company also expects to reduce its U.S. dealer count to just over 3,600 by the end of next year.
Mining stocks are down 1.7%. FNX Mining (FNX.TO) has dropped 4.1%, First Quantum (FM.TO) is down 3.5% and Teck Cominco (TCK.B.TO) has dropped 3%.
HudBay Minerals (HBM.TO) has added 2% amid a report in the Globe and Mail that Indian mining company Lakomasko has purchased about 10% of the struggling Canadian zinc and copper producer.
Energy stocks have dropped 1.5% with crude oil falling below $50 per barrel again. AMong the big names, Savanna (SVY.TO) has dropped 3.5%, Canadian Natural Resources (CNQ.TO) is down 1.9% and Canadian Oil Sands (COS.UN.TO) is down 1.6%.
Energy stocks could also see some weakness with crude oil on the decline in the early going. Light sweet crude for June delivery dropped to $48.51, down $3.04 on the day.
Tundra Semiconductor (TUN.TO) has surged 14% after the announcement it was received an all-cash buyout offer from Integrated Device Technology at a price of C$6.25 per share or about C$120.8 million.
Ritchie Bros. Auctioneers (RBA.TO) is down 0.4%. The company said it sold US$50 million of equipment at an unreserved public auction in Moerdijk, the Netherlands last week - including US$7 million of equipment that was sold to online bidders.
The S&P/TSX Composite Index rallied 139.98 points or 1.48% to end at 9,549.48, its best finish since November 10. With the rally, Toronto's main index added 112.33 points for the week, erasing a sharp plunge from Monday.
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