October 22, 2008 / 12:55 PM / 9 years ago

CANADA STOCKS-Toronto stocks to fall, eyes oil, earnings

TORONTO, Oct 22 (Reuters) - The Toronto Stock Exchange’s main index may slip at the open on Tuesday as the price of oil eased to near 16-month lows.

Investors will also digest Tuesday’s corporate results that came in after the bell, including numbers from Husky Energy (HSE.TO) and Canadian National Railway (CNR.TO). Teck Cominco TCKb.TO is set to kick off the results parade of Canadian miners on Wednesday after market close. [ID:nN2129586]

The index broke its two-day winning streak by plunging 4.4 percent, hit by disappointment over a leaner-than-expected interest rate cut by the Bank of Canada and by falling commodity prices on Tuesday.

Here is some of the news that could affect the market.

HUSKY ENERGY PROFIT RISES 65 PCT

Kicking off the Canadian oil patch’s third-quarter reporting period, Husky Energy Inc’s (HSE.TO) profit jumped 65 percent as oil prices hit a record before the global financial meltdown prompted a major pullback [ID:nN21528561]

OIL EASES

Oil fell below $70 a barrel on the view that economic growth concerns could limit the impact of any supply cuts OPEC might agree at a meeting this week. Evidence of mounting global supplies is expected to emerge when the U.S. government publishes weekly statistics on oil inventories. [ID:nT335978]

CN RAIL PROFIT UP

Canadian National Railway (CNR.TO) said profit rose in the third quarter, but declined to make a specific forecast for its financial performance in 2009 due to economic uncertainty. The company said, however, that it still expects to be able increase base pricing in the 4 to 5 percent range, as in 2008. [ID:nN21314467]

APPLE IPHONE SALES OUTPACE RIM

Apple Inc (AAPL.O) reported a stronger-than-expected 26-percent rise in quarterly profit, spurred by strong sales of its new iPhone. The company said it sold 6.89 million iPhones during the quarter, outpacing BlackBerry-maker Research in Motion RIM.TO. [ID:nN21324838]

CANADA RETAIL SALES FALL

Canadian August retail sales dropped for the first time in six months, slipping 0.3 percent from July on lower sales in the automotive sector, Statistics Canada said. [ID:nOTT001422]

COREL ENDS SALE TALK

Consumer software maker Corel CRE.TO has ended discussions with a third party regarding a potential sale. The company said it will continue to evaluate all strategic alternatives. [ID:nWNAB9732]

GMP SECURITIES HALVES DISTRIBUTION

Independent investment bank GMP Capital Trust GMP_u.TO said on Tuesday it will cut its monthly distribution in half, citing the severity of market conditions. [ID:nN21328638]

BMO CUTS SUN LIFE

BMO cut the price target on Sun Life Financial (SLF.TO) to C$34 from C$43. [ID:nWNAB9802] The insurer swung to a quarterly loss amid market upheaval and its shares fell more than 10 percent on Tuesday.

CANACCORD ADAMS STARTS COVERAGE ON OILFIELD SERVICE FIRMS

Brokerage Canaccord Adams initiated coverage on five Canadian oilfield service companies, including Precision Drilling Trust PD_u.TO. Four of the five were started with a buy rating. [ID:nWNAB9480] ($1=$1.25 Canadian) (Reporting by Ka Yan Ng; Editing by James Dalgleish)

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