November 4, 2011 / 12:58 PM / 6 years ago

CANADA STOCKS-TSX set for lower open on soft Canada, U.S. data

6 Min Read

Nov 4 (Reuters) - Toronto's main stock index looked set to open slightly lower on Friday after Canadian and U.S. jobs growth came in lower than forecast.

Unexpected job losses in October pushed Canada's unemployment rate higher, confirming expectations the economy is weakening and interest rate increases are off the radar. [ID:nN1E7A3026]

Factors to Watch

* Canadian equity futures <0#SXF:> pointed to a lower open.

* The Canadian dollar dropped more than a cent after Canadian employment plunged in October, bucking expectations for a gain in jobs and boosting the chances of an eventual Bank of Canada interest rate cut. [CAD/]

* U.S. stock index futures briefly turned positive after Labor Department data showed employment rose less than expected in October, though the jobless rate dropped, hinting at some improvement in the jobs picture. [.N]

* European shares drifted higher in choppy trade as signs Greece would seek political consensus on a new aid package and dump a referendum helped cap some fears of an imminent default, although the outcome remains uncertain. [.EU] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at [CA/MNC] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.25 percent in early trade.

* Brent crude extended gains for a second day to above $111 a barrel as Greece dropped plans to hold a referendum on a European Union bailout, easing worries of a disorderly default. [O/R]

* Gold ticked lower after rising more than 1 percent in the previous session, but prices held near their highest in six weeks due to the uncertainty surrounding the euro zone debt crisis and the prospect of a Greek exit from the euro. [GOL/]

* Copper rose more 1 percent as market sentiment improved as Greece dropped plans to hold a referendum on a bailout package, easing imminent worries over a disorderly default. [MET/L]

Canadian Stocks to Watch

* Bonavista Energy Corp. (BNP.TO): The company posted a higher quarterly profit helped by higher average production, and forecast a moderate rise in production for next year. [ID:nL4E7M34WP]

* Uranium One UUU.TO The company on Thursday boosted the official resource at its Mkuju River uranium project in Tanzania by 42 percent. The total measured and indicated resource rose to 93.3 million pounds of contained uranium. [ID:nN1E7A2221]

* Russel Metals RUS.TO: The company posted higher quarterly profit, helped by growing demand in its metals segment. [ID:nL4E7M34PA]

* Pason Systems Inc. PSI.TO: The company, which rents out oilfield instruments, more than doubled its profit, driven by a drilling boom in North America, and raised its half-yearly dividend by 11 percent. [ID:nL4E7M41EM]

* Flint Energy Services FES.TO: The oilfield service company posted a higher quarterly profit, helped by more drilling activity in Canada and the U.S., but forecast a moderate rise in drilling on global economic uncertainty. [ID:nL4E7M353I]

* GMP Capital Inc GMP.TO: The company reported a quarterly loss, hurt by a weak performance at its capital markets division. [ID:nL4E7M41DH]

* Air Canada ACa.TO ACb.TO: The airline reported a 12 percent drop in third-quarter operating income, hurt by higher fuel prices. [ID:nL4E7M417P] Separately, it flew slightly emptier planes in October, data showed on Thursday, as capacity increase outflanked a rise in demand. [ID:nN1E7A227J]

* Mercer International MRIu.TO: The company posted lower quarterly results, hurt by weak pulp prices and a fall in pulp output due to unplanned maintenance downtime at a mill. [ID:nL4E7M34VQ]

* DragonWave Inc. DWI.TO: The telecom equipment maker said it will buy Nokia Siemens microwave transport business for 10 million euros in cash to expand its existing microwave technology portfolio. [ID:nL4E7M410P]

* Primero Mining P.TO: The gold miner posted a third-quarter profit, helped by strong gold and silver prices. [ID:nL4E7M41NW]

* Heroux-Devtek Inc. (HRX.TO): The aerospace and industrial products maker posted a 78 percent rise in quarterly profit, partly helped by higher sales in its industrial business. [ID:nL4E7M41S5]

Analyst Recommendations

Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]

* Alamos Gold Inc (AGI.TO) rating cut to sector performer from sector outperformer at CIBC

* BCE BCE.TO rating cut to neutral from outperform on valuation at Macquarie; price target raised to C$40 from C$39 at National Bank

* Bonavista Energy (BNP.TO) price target cut to C$29 from C$30 at National Bank

* Calloway REIT CWT_u.TO price target raised to C$28 from C$27.50 at National Bank

* Canmarc REIT CMQ_u.TO price target raised to C$14.15 from C$14 at National Bank

* Dorel Industries Inc (DIIb.TO) price target cut to C$26 from C$28 at National Bank

* International Forest Products IFPa.TO price target cut to C$7 from C$7.25 at Salman Partners

* Inter Pipeline Fund IPL_u.TO price target raised to C$17 from C$15.50 at National Bank

* North American Energy Partners Inc (NOA.TO) price target raised to C$8 from C$7.50 at CIBC

* Manitoba Telecom Services Inc MBT.TO price target cut to C$33 from C$34 at CIBC

* PHX Energy Services Corp PHX.TO price target cut to C$13 from C$13.50 at RBC; price target raised to C$12.50 from C$11.00 at CIBC

* Sun Life Financial (SLF.TO) price target cut to C$25 from C$26 at National Bank

$1= $1.02 Canadian Reporting by Karan Khemani; Editing by Jeffrey Hodgson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below