April 23, 2013 / 12:37 PM / 4 years ago

CANADA STOCKS-TSX may open higher, helped by corporate earnings

4 Min Read

April 23 (Reuters) - Canada's main stock index looked set to open higher as strong earnings at some U.S. companies improved sentiment, even as some Canadian corporate results showed signs of weakness.

Top Stories

* China and Germany, the world's two biggest exporters, showed new signs of weakness in major business surveys, increasing doubt about the strength of global demand and economic recovery.

* Encana Corp, Canada's No.1 natural gas producer, reported a 25 percent fall in first-quarter operating profit due to hedging losses.

* Teck Resources Ltd, Canada's largest diversified miner, reported a 40 percent fall in first-quarter adjusted profit due to lower coal prices, and said economic uncertainty may affect prices and shipments.

* Contract electronics manufacturer Celestica Inc reported a 76 percent fall in first-quarter profit, hit by the loss of its once-biggest customer, Blackberry.

* Lockheed Martin Corp, the Pentagon's biggest weapons supplier, reported a better-than-expected 14.8 percent increase in net income for the first quarter but warned annual revenues were likely to come in at the low end of earlier guidance due to U.S. budget cuts.

Market Snapshot

* Canada stock futures traded up 0.26 percent

* U.S. stock futures , , were up around 0.43 percent and 0.65 percent

* European shares, were up

Commodity Price Moves

* Thomson Reuters-Jefferies CRB Index : 282.3853; fell 0.32 percent

* Gold futures : $1,420.6; fell 0.03 percent

* US crude : $88.46; fell 0.82 percent

* Brent crude : $99.59; fell 0.8 percent

* LME 3-month copper : $6,836; fell 1.43 percent

Canadian Stocks to Watch

* Canadian National Railway Co : Oil companies are increasingly investing in transporting crude by railway, the railway operator said on Monday, with growing demand expected to bolster earnings in coming years.

* Rogers Communications Inc : The wireless telecommunications company posted a 15 percent rise in quarterly profit as new smartphone subscribers pushed up wireless revenue.

* TransCanada Corp : The U.S. environment regulator on Monday said the State Department must take a harder look at climate and other impacts of the Canada-to-Texas Keystone XL oil sands pipeline before the Obama administration issues a final decision on the project.

Analysts' Recommendations

Following is a summary of research actions on Canadian companies reported by Reuters.

* Air Canada : Canaccord Genuity raises price target to C$5.50 from C$5 on expectations of continued profit increases from modest volume increase and incremental margin gains.

* Canadian National Railway Co : Canaccord Genuity raises price target to C$102 from C$101 after the company reported first-quarter results, expects results to normalize for the rest of the year.

* Rogers Communications Inc : CIBC cuts to sector performer from sector outperformer on valuation following first-quarter results, says given that wireless remains the driver for the shares there is little room for higher estimates.

On the Calendar

* Major Canadian economic data includes retail sales

* Major U.S. events and data includes Markit's flash U.S. manufacturing PMI

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