Canadian stocks are poised for a higher open Tuesday on firm commodities and on a mixed batch of corporate earnings reports. However, a soft economic growth data out of Canada may weigh on sentiment even as traders were cautiously optimistic on further stimulus after French and German leaders, and the ECB chief pledging to protect the euro zone.
U.S. stock futures were pointing to a marginally higher open.
On Monday, the S&P/TSX Composite Index snapped its three-session winning streak to edged down 8.48 points or 0.07 percent to 11,757.88.
The price of crude oil was ticking higher Tuesday morning as traders await cues from a 2-day FOMC meeting, starts today Crude for September edged up $0.30 to $90.08 a barrel.
The price of gold continued to hover above the $1,600-mark Tuesday morning as the U.S. dollar was mixed ahead of the FOMC meeting. Gold for December delivery added $4.90 to $1,628.90 an ounce.
In corporate news from Canada, electricity transmission systems operator Brookfield Infrastructure (BIP_UN.TO) announced that ti along with its institutional partners would acquire the remaining 45 percent of the Autopista Vespucio Norte or AVN toll road that they do not currently own for approximately $590 million.
Distribution utility company Fortis Inc. (FTS.TO) posted improved second quarter net earnings at C$62 million or C$0.33 per share compared to C$57 million or C$0.32 per share for the second quarter of 2011. Analysts were expecting the company to report earnings of C$0.33 per share.
Power company TransAlta Corp. (TA.TO) slipped into the red in second quarter, reporting net loss of C$797 million or C$3.51 per share versus profit of C$12 million or C$0.05 per share a year ago. Comparable loss was C$0.10 per share versus comparable earnings C$0.29 per share. Analysts were expecting the company to report loss of C$0.07 per share.
Oil fields services provider Trican Well Service (TCW.TO) slipped into the red in second-quarter, reporting a loss of C$50.9 million or C$0.35 per share compared to a profit of C$30.1 million or C$0.21 per share in the prior-year quarter. Adjusted loss was C$48.6 million or C$0.33 per share compared to a profit of C$33.3 million or C$0.23 per share last year. Analysts were expecting the company to report a loss of C$0.37 per share for the quarter.
BP plc (BP_UN.TO) posted second-quarter 2012 loss of $1.385 billion or 7.29 cents per share versus a $5.72 billion profit or 30.27 cents per share last year.
Hardware dealer RONA inc. (RON.TO) announced that its Board of Directors has unanimously determined that an unsolicited, non-binding $14.50 per share acquisition proposal recently received from U.S.-based Lowe's Companies, Inc. (LOW), is not in the best interests of RONA and its stakeholders.
News service provider Thomson Reuters Corp. (TRI.TO) reported a much improved second-quarter net earnings of $922 million or $1.11 per share compared to last year's $563 million or $0.67 per share. Adjusted earnings from continuing operations were $449 million or $0.54 per share, compared with $429 million or $0.51 per share .
In economic news, Statistics Canada said real gross domestic product edged up 0.1 percent in May, just missing consensus estimates for a 0.2 percent growth and lower than 0.3 percent growth recorded in April. The output of service industries rose 0.1 percent in May on the strength of retail trade and the finance and insurance sector.
From the U.S., the Commerce Department said that personal income in the U.S. had risen by $61.8 billion in June, an increase of 0.5 percent. The increase was higher than the 0.4 percent predicted by most economists and comes atop revised figures that showed the May increase in personal income of 0.3 percent was higher than the 0.2 percent initially reported. However consumer spending, known formally as personal consumption expenditures fell marginally in June, dropping $1.3 billion.
Elsewhere, today's data from the Eurostat revealed that euro zone inflation remained stable in July as expected by economists. The annual rate came in at 2.4 percent, above the central bank's target of "below but close to 2 percent." The final data is due on August 16.
A separate report from the agency said the euro zone unemployment rate remained unchanged at a record high in June. The jobless rate for June was 11.2 percent, the same as seen in May. The rate matched economists' expectations.
Unemployment in Germany increased in July as widely expected, data from the Federal Labor Agency showed. The number of unemployed rose by 7,000 in July from a month earlier. This was in line with economists' forecast and followed a similar increase in the previous month.
Meanwhile, Germany's retail sales dropped unexpectedly in June from the prior month, data from the Federal Statistical Office revealed. Retail turnover was down 0.1 percent from May, in contrast to a 0.5 percent rise expected by economists. Nonetheless, the rate of decline was slower than the 0.3 percent drop seen in May.
by RTT Staff Writer
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