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Bay Street Likely To Open On Weak Note

The Canadian stock market, set to resume trading on Tuesday after an extended weekend, is likely to open on a negative note, due to weakness in global markets after Apple Inc. warned that it is unlikely to meet its sales target due to the virus outbreak.

The market remained closed on Monday for Family Day holiday. The U.S. market was closed on Monday for Presidents Day.

On Friday, the benchmark S&P/TSX Composite Index ended up 27.19 points, or 0.15%, at 17,848.36, about 50 points off the day's low of 17,798.64.

In company news, Air Canada (AC.TO) said today that its first quarter is expected to be hurt by the suspension of flights to mainland China and from Toronto to Hong Kong due to the novel coronavirus, the continued grounding of its fleet of Boeing 737 MAX aircraft and increased maintenance and pension costs.

The airline, which reported net profit of $152 million or $0.56 per diluted share in the fourth-quarter, compared to net loss of $360 million or $1.33 per share in the year-ago quarter. The company said it expects first-quarter EBITDA to be about $200 million lower than the first quarter of 2019.

Bombardier Inc. (BBD.B.TO) said it has reached a US$8.2-billion deal to sell its rail business to French rail giant Alstom SA.

Asian markets ended lower on Tuesday, weighed down by Apple Inc's warning that it is unlikely to meet a sales target set just three weeks ago, and on reports that the U.S. may force global chipmakers using American-made equipment to obtain licenses before supplying chips to Huawei.

European markets are drifting lower, with technology stocks leading the declines after Apple Inc warned of trouble from the coronavirus outbreak, saying it would not meet its guidance for March-quarter revenue because of slower iPhone production.

In commodities, West Texas Intermediate Crude oil futures for March are declining $1.07, or 2.05%, at $50.98 a barrel.

Gold futures for April are gaining $3.50, or 0.23%, at $1,589.80 an ounce.

Silver futures for March are up $0.111, or 0.63%, at $17.845 an ounce, while Copper futures for March are down marginally at $2.5985 per pound.

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