New Gold Crashes On This Bad News

UPDATE 1-Mexican court block New Gold's appeal on mine ruling

09:30 EDT Wednesday, July 07, 2010

* Says not got reason for denial of environmental permit

* Not aware of implications on mine

* Says to approach appeals court, may go to Supreme Court

July 7 (Reuters) - Canada's New Gold on Wednesday said a Mexican district court had denied its appeal against a federal ruling that cancelled the gold miner's environmental permit at its Cerro San Pedro mine.

Operations at the mine were suspended in November last year after the country's environment ministry, SEMARNAT, acting on a federal court ruling, revoked the mine's 2006 environmental permit.

New Gold said it had not yet got a written reason for the denial and that it was not aware of the effect on the mine in San Luis Potosi.

New Gold said it would file an appeal in the appeals court after reviewing the full decision and that it may also file an application with the Supreme Court.

The company said it was in talks with both SEMARNAT and PROFEPA, Mexico's environmental enforcement agency, to work towards the uninterrupted operation of the mine.

Shares of the Vancouver, British Columbia-based company closed at C$6.08 Tuesday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Savio D'Souza)

Wall St climbs after State Street earnings outlook

US STOCKS-Wall St climbs after State Street earnings outlook

10:23 EDT Wednesday, July 07, 2010

* State Street jumps on earnings outlook

* Family Dollar's forecast weighs on retailers

* Indexes up: S&P 500 0.9 pct, Dow 0.8; Nasdaq 0.9 pct

* For up-to-the-minute market news see [STXNEWS/US]

(Updates to open)

By Edward Krudy

NEW YORK, July 7 (Reuters) - Wall Street rose on Wednesday as a higher profit outlook from bank State Street Corp reinforced hopes of a better-than-expected earnings season and trumped fears of slower global economic growth.

Banks rallied after heavy losses in recent weeks, with the KBW bank index <.BKX> up 1.8 percent as State Street's forecast reinforced expectations that banks without exposure to trading would perform well in the coming earnings season.

"The earnings data provided by State Street is one of the key factors boosting the market today," said Nick Kalivas, an analyst at MF Global in Chicago. Kalivas said investors were starting to reposition for earnings season next week.

The Dow Jones industrial average <.DJI> gained 71.30 points, or 0.73 percent, to 9,814.92. The Standard & Poor's 500 Index <.SPX> gained 9.57 points, or 0.93 percent, to 1,037.63. The Nasdaq Composite Index <.IXIC> gained 20.91 points, or 1.00 percent, to 2,114.79.

State Street , the world's second-largest custody bank, forecast its second-quarter operating earnings to beat analysts' expectations, which reinforced hopes of strong earnings from some financials and sent the bank's shares up 9.5 percent to $36.50.

The S&P 500 index has fallen around 15 percent since a recent peak on April 23 and is down 7.5 percent since the start of the year as fears about the economy have weighed on stocks. Selling has been heavy in recent weeks on signs of a slowdown in the U.S. recovery.

Bringing its S&P 500 index year-end target more into line with the market, UBS lowered its forecast to a level of 1,150 from 1,350 to reflect modestly weaker earnings growth and longer-term secular headwinds.

Family Dollar Stores Inc on Wednesday posted higher quarterly profit as customers sought cheaper products in the face of high unemployment, but the discount chain forecast fourth-quarter earnings below expectations. [ID:nSGE6660EP].

The shares fell 7.8 percent to $36.35 and were a drag on the retail sector.

BP Plc Chief Executive Tony Hayward met with officials from Abu Dhabi's investment authority as speculation mounted the sovereign fund would make a fresh investment. BP's New York-traded shares rose 3.2 percent to $32.95. (Editing by Padraic Cassidy)