Canadian stocks are poised for a steady start Friday amid firm commodities and on positive cues from the global equity markets, that have moved up on hopes of more stimulus from both sides of the Atlantic. Yesterday, ECB governor Mario Draghi said the central bank will do whatever is needed to preserve the euro. The comments also raised speculation that ECB, in its upcoming meeting next week, will take drastic measures to tackle the debt situation in the region.
U.S. stock futures were pointing to a higher open.
On Thursday, the S&P/TSX Composite Index extended gains for a second session, adding 147.24 points or 1.28 percent to 11,639.75.
The price of crude oil was ticking higher Friday morning, with crude for September adding $0.33 to $89.72 a barrel.
The price of gold was firm near its monthly high Friday morning as the dollar was trading mixed, with gold for August gaining $7.30 to $1,622.40 an ounce.
In corporate news from Canada, HSBC Bank Canada (HSB_PC.TO) posted a marginally lower second quarter profit at C$186 million or C$0.37 per share versus C$191 million or C$0.38 per share last year.
Property and casualty insurance company Fairfax Financial Holdings (FFH.TO) reported net income for the second quarter of $95.0 million or $3.85 per share, compared to $83.3 million or $3.40 per share for the year-ago quarter.
Eldorado Gold (ELD.TO) reported a much lower second-quarter net income of $46.6 million, or $0.07 per share compared to $74.9 million or $0.14 per share in the same period last year.
Integrated wood products company Tembec Inc. (TMB.TO) slipped into the red in third quarter, reporting net loss of C$5 million or C$0.05 per share, compared to a net profit of C$17 million or C$0.17 per share last year. Analysts were expecting the company to report loss of C$0.03 per share for the quarter.
Independent power producer Capital Power Corp. (CPX.TO) reported a wider second quarter net loss of $32 million or $0.57 per share compared to a loss of $25 million or $0.67 per share in the comparable period last year. However, after adjusting for one-time items and fair value adjustments, earnings were C$5 million or C$0.07 per share compared to C$3 million or C$0.07 per share last year. Analysts were expecting the company to report loss of C$0.25 per share for the quarter.
Largely hurt by C$54.4 million (pre-tax) of costs related to the Maple Group Acquisition Corporation's proposed acquisition of TMX Group and the proposed merger with London Stock Exchange Group, Canadian stock market operator TMX Group Inc. (X.TO) reported a sharply lower second-quarter net income, that declined to C$1.8 million from C$54.7 million in the year ago quarter. On a per share basis, net income was C$0.02, down from C$0.73 in the prior year quarter.
Electronics products company Celestica Inc. (CLS.TO) posted second quarter IFRS net earnings of $45.7 million or $0.21 per share versus $23.6 million or $0.11 per share last year. Non-IFRS adjusted net earnings per share were $0.27, up from $0.22 last year. Analysts were expecting the company to report loss of C$0.24 per share for the quarter.
Transportation and logistics services provider TransForce Inc. (TFI.TO) posted higher second quarter net income of C$34.1 million or C$0.34 per share versus C$26.2 million or C$0.27 per share a year ago. Adjusted net income increased to C$0.38 per share from C$0.27 per share last year. Analysts were expecting the company to report loss of C$0.36 per share for the quarter.
In economic news from south of the border, the U.S. Commerce Department said gross domestic product grew at 1.5 percent in the second quarter. That marks a slowdown from the 2 percent growth posted for the first quarter, but a smaller contraction than most economists' prediction of just 1.2 percent growth for the quarter.
Elsewhere, unemployment rate in Spain increased in the June quarter, the latest figures from the statistical office INE showed. The rate rose to 24.63 percent in the second quarter from 24.44 percent in the first quarter. This was almost in line with economists' forecast of 24.65 percent.
by RTT Staff Writer
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