TORONTO, Nov 17 (Reuters) - Canada’s main stock market index may open lower on Tuesday, giving back some of the gains notched in a triple-digit advance in the previous session, as weaker gold and energy prices weigh on the resource-heavy bourse.
Investors will also digest the latest results from key North American retailers including U.S. home improvement giant Home Depot Inc (HD.N) and Canadian grocer Loblaw Co (L.TO) for clues on the mood of consumers as the key holiday season ramps up.
Toronto’s main stock index shot to its highest close in more than three weeks on Monday as a rally in oil prices helped power oil and gas shares. [nN16521282]
Here is some of the news that may affect the market:
Gold edged lower in Europe on Tuesday, giving up some of the gains that took it to record highs a day before, as the U.S. dollar recovered some lost ground, sparking a correction in commodities prices. [nLH581355]
Oil fell below $79 a barrel on Tuesday as the U.S. dollar rose and a weekly U.S. inventory report was expected to show higher crude stocks. [nSYD75280]
Top home improvement chain Home Depot reported a higher-than-expected quarterly profit on Tuesday as cost cuts offset weak sales.[nN17541390] Loblaw is due out before the markets open.
Nortel Networks Corp NRTLQ.PK posted a $508 million third-quarter loss on Monday as its finances were hit by customer uncertainty over its bankruptcy proceedings and the tough economy. [nN16527189]
Proxy advisor Riskmetrics Group said on Monday that shareholders of CF Industries Holdings Inc CF.N should tender their shares to Agrium Inc’s (AGU.TO) hostile bid for CF, saying the offer is “compelling enough to at least earn a seat at the negotiation table.” [nN16525206]
Bank of Montreal (BMO.TO), Canada’s No. 4 bank by market capitalization, said on Monday it is taking over Paloma Securities LLC, a U.S.-based securities lender, for an undisclosed amount. [nN16520958]
Following is a summary of research actions on Canadian companies reported by Reuters on Tuesday. [RCH/CA]
* MacQuarie raises Bank of Montreal to “neutral” from “underperform.”
* Blackmont raises Goldcorp Inc (G.TO) price target to C$55 from C$54; rating “outperform.”
* Raymond James raises Aecon Group Inc (ARE.TO) target price to C$19 from C$16.50; rating “strong buy.” ($1=$1.06 Canadian) (Reporting by Scott Anderson; Editing by Padraic Cassidy)