Canadian stocks are poised for a mixed open Thursday amid flat commodities and a mixed batch of earnings reports from major corporates. Meanwhile, trade data from both sides of the border came in mixed. While Canada reported a wider trade deficit, data from the U.S. revealed that its trade deficit shrank.
U.S. stock futures were pointing to a flat open.
On Wednesday, the S&P/TSX Composite Index snapped its 2-session winning streak to shed 82.46 points or 0.70 percent to 11,781.04.
The price of crude oil was steady near $94 Thursday morning as traders speculated further monetary policy easing by Chinese officials after data showed a fall in Chinese consumer price inflation to a 30-month low in July,
Meanwhile, the Organization of the Petroleum Exporting Countries maintained its 2012 world oil demand growth forecast at 0.90 mbd and said the summer driving season, the summer heat, and the continued shutdown of most of Japan's nuclear capacity supported demand growth.
Crude for September gained $0.46 to $93.81 a barrel.
The price of gold was flat amid a firm U.S. dollar. Gold for December edged down $2.90 to $1,613.10 an ounce.
In corporate news from Canada, international gold miner Goldcorp Inc. (G.TO) appointed George Burns as its Executive Vice President and Chief Operating Officer, replacing Steve Reid.
Gold miner Kinross Gold (K.TO) reported lower second-quarter net earnings of $153.6 million or C$0.13 per share compared to $247.4 million or $0.22 per share a year ago. Adjusted net earnings from continuing operations were $0.14 per share, compared with $0.20 per share in the prior year. Analysts were expecting the company to report earnings of $0.17 per share this qaurter.
Yamana Gold (YRI.TO) reported a sharp decline in its second-quarter net earnings at $43 million or $0.06 per share, compared with net earnings of $195 million or $0.26 per share for the second quarter of 2011. Adjusted earnings were $135 million or $0.18 earnings per share in the second quarter of 2012, compared with $186 million or $0.25 per share. Analysts were expecting the company to report earnings of $0.27 per share this quarter.
Gold-focused royalty company Franco-Nevada Corp. (FNV.TO) reported a marginally higher second quarter net profit of $36.9 million or $0.26 per basic share compared to $33.3 million or $0.27 per basic share last year. Adjusted income rose to $35.1 million or $0.24 per share from $33.2 million or $0.26 per share. Analysts were expecting the company to report earnings of C$0.28 per share for this quarter.
West Africa focused gold miner Golden Star Resources (GSC.TO) swung to profit in second quarter, reporting net income of $2.5 million or $0.01 per share compared to net loss of $5.0 million or $0.02 per share last year. Analysts expected the company to report earnings of $0.04 per share for the quarter.
Base-metals miner Taseko Mines Ltd. (TKO.TO) reported that its second-quarter adjusted net earnings was C$4.0 million or C$0.02 per share, up from C$1.7 million or C$0.01 per share in the year ago quarter.
CAE Inc. (CAE.TO) reported lower first-quarter net income of C$21.3 million or C$0.08 per share, down from C$43.1 million or C$0.17 per share in the same quarter last year. Adjusted net income was C$46.7 million or C$0.18 per share, matching consensus estimates
Aerospace and transportation company Bombardier Inc. (BBD_A.TO, BBD_B.TO) reported a decline in its second quarter net income at $182 million or $0.10 per share compared to $210 million or $0.12 per share reported last year.
Canadian Natural Resources Ltd. (CNQ.TO) posted second-quarter net earnings of C$753 million or C$0.68 per share, down from C$929 million or C$0.84 per share last year. Adjusted net earnings per share were C$0.55, versus C$0.56 in the same quarter last year. Analysts were expecting the company to earn C$0.53 per share.
Oil and gas company Peyto Exploration & Development Corp. (PEY.TO) posted second-quarter Funds from Operations of $64.7 million or $0.47 per share, lower than $77.0 million or $0.58 per share in the previous year quarter.
Oil and gas industry services provider Savanna Energy Service Corp. (SVY.TO) reported a wider second quarter loss of C$7.6 million or C$0.09 per share compared to C$956,000 or C$0.01 per share in the same period last year. Analysts were expecting the company to earn C$0.01 per share.
Oil and gas company Whitecap Resources inc. (WCP.TO) said its second quarter funds from operations increased to $40.1 million or $0.33 per share from $19.9 million or $0.29 per share in the year-earlier quarter.
Insurer Manulife Financial Corp ( MFC.TO) slipped into the red in second-quarter, reporting net loss of C$300 million, as against a profit of C$490 million last year.
Full-service investment dealer Canaccord Financial Inc. (CF.TO) slipped into the red in first quarter, reporting net loss of C$20.6 million or C$0.24 per share, compared to a net profit of C$13.2 million or C$0.16 per share last year. Adjusted loss were C$16.30 million or C$0.20 per share, compared to an adjusted profit of C$14.13 million or C$0.17 per share in the prior-year quarter. Analysts were expecting the company to report loss of C$0.04 per share for the quarter
Financial sector services provider Davis + Henderson Corp. (DH.TO) posted second-quarter net income of C$20.9 million or C$0.3526 per share, compared to C$23.5 million or C$0.4010 per share in the prior year quarter.
Artis Real Estate Investment Trust (AX_UN.TO) reported that its second-quarter Funds from operation rose to C$33.33 million or C$0.31 per share from C$22.78 million or C$0.29 per share in the year ago quarter.
Industrial and commercial real estate properties dealer Granite Real Estate Inc. (GRT.TO) said its second-quarter funds from operations declined to C$29.4 million or C$0.63 per share from C$36.9 million or C$0.78 per share in the same period last year.
Quick service restaurant chain Tim Hortons Inc. (THI.TO) posted higher second-quarter net income of C$108.1 million or C$0.69 per share, compared with C$95.5 million or C$0.58 per share a year ago. Analysts were expecting the company to report loss of C$0.69 per share for the quarter
Automotive industry supplier Linamar Corp.(LNR.TO) reported improved second-quarter net earnings of C$42.1 million or C$0.65 per share compared to C$28.0 million or C$0.43 per share in the same quarter last year. Analysts were expecting the company to report earnings of C$0.61 per share for this quarter.
Diversified services provider Black Diamond Group (BDI.TO) reported improved second quarter net income of C$11 million or C$0.28 per share compared to C$9.4 million or C$0.26 per share last year. Analysts were expecting the company to report earnings of C$0.29 per share for this quarter.
Software services provider Networks Corp. (MNW.TO) lowered its revenue outlook for the first quarter, citing orders booked that did not ship in the quarter, implementation delays on several customer projects and a general deterioration in the macro environment. Mitel now forecasts first-quarter revenue in a range of $138 million to $139 million, down from the prior forecast of $150 million to $155 million.
In economic news, Statistics Canada said trade deficit with the world widened from $954 million in May to $1.8 billion in June as merchandise imports rose 2.3 percent while exports edged up 0.2 percent in June.
From across the border, the U.S. Labor Department said that initial jobless claims fell to 361,000 the week ended August 04 from the previous week's revised figure of 367,000. Economists had expected jobless claims to edge up to 367,000 from the 365,000 originally reported for the previous week.
Separately, U.S. Commerce Department figures project a total level of U.S. exports of $185 billion for June with imports of $227.9 billion leading to a deficit of $42.9 billion. The deficit marks a 10.7 percent drop from the revised May level of $48 billion, which was itself revised down from the $48.7 billion initially reported.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Market Analysis