October 27, 2010 / 1:00 PM / 7 years ago

CANADA STOCKS-TSX may open lower on weak commodities, U.S. data

6 Min Read

Oct 27 (Reuters) - Toronto's main stock index could open lower on Wednesday, hurt by a decline in commodity prices and U.S. data showing durable goods orders rose more than expected, but fell when transportation equipment was excluded.

Factors to Watch

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

* The Canadian dollar slipped further against the U.S. dollar on Wednesday as the greenback rose broadly on speculation the U.S. Federal Reserve would take a gradual approach to quantitative easing next week. [CAD/]

* U.S. stock futures fell after durable goods orders rose more than expected in September, but fell when transportation equipment was excluded. [.N]

* European stocks were marginally higher, helped by strong bank results, as investors assessed whether improving sentiment might cause the U.S. Federal Reserve to be less aggressive in monetary easing. [.EU]

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.62 percent in early trade.

* Oil fell below $82 a barrel, snapping a three-day rally as mounting doubts about the size and timing of U.S. economic stimulus pushed up the dollar. [O/R]

* Gold eased towards $1,330 an ounce in Europe as the dollar firmed versus the euro after a report said the Federal Reserve would likely adopt a gradual approach to further U.S. monetary easing. [GOL/]

* Copper turned back from over two-year highs on Wednesday as the dollar rose on speculation the U.S. Fed may buy fewer bonds than first thought, although news of an exchange-traded product listing cushioned losses. [MET/L]

Canadian Stocks to Watch

* Canadian National Railway Co. (CNR.TO): Canada's biggest railway reported a better-than-expected 21 percent jump in its third-quarter profit on Tuesday and predicted a strong end to the year if the economy continues to hold up. [ID:nN26285904]

* Canadian Pacific Railway (CP.TO): Canada's second-biggest railway reported a 28 percent jump in third-quarter operating profit on Wednesday, on the back of increased freight revenue. [ID:nN26150309]

* Canam Group Inc. CAM.TO: The construction equipment maker on Wednesday reported higher-than-expected third-quarter profit helped by increased volume of structural steel construction projects. [ID:nSGE69Q0H6]

* Corus Entertainment (CJRb.TO): The media company reported a 64 percent drop in fourth-quarter profit, hurt by higher expenses, but raised its dividend 25 percent. [ID:nSGE69Q0IW]

* Potash Corp. (POT.TO): The world's top fertilizer maker on Tuesday filed an amended complaint in its lawsuit against unsolicited suitor BHP Billiton, offering fresh details from the court's ongoing discovery process in the case. [ID:nN26177952]

* FirstService Corp FSV.TO: The property manager posted a third-quarter profit that marginally beat market estimates, helped by a 43 percent rise in revenue from its commercial real estate services segment. [ID:nSGE69Q0JM]

* Teck Resources TCKb.TO: The diversified Canadian miner said on Tuesday its third-quarter operating profit rose sharply, driven by a surge in commodity prices, but earnings fell short of market expectations partly due to higher costs. [ID:nN26118379]

* TMX Group Inc. (X.TO): Toronto Stock Exchange operator on Wednesday reported 22 percent rise in third-quarter profit, helped by lower expenses, and raised its dividend by 5 percent. [ID:nN26158365]

* IESI-BFC Ltd. BIN.TO: The waste-management company on Tuesday reported a 25 percent rise in its third-quarter profit, helped by rising demand for its services in Canadian markets. [ID:nSGE69O0L2]

* Ivanhoe Mines (IVN.TO): The miner said on Tuesday it has filed counter-claims against Rio Tinto, in relation to an arbitration process that was launched by the Anglo-Australian miner earlier this year. [ID:nN26171159]

* Norbord Inc. NBD.TO: The wood-based panels producer on Wednesday reported wider-than-expected third-quarter loss, hurt by an increase in costs, and said it expects oriented strand board demand and prices to remain near cycle-bottom levels during the seasonally softer winter. [ID:nSGE69Q0GW]

* Northland Resources Inc NAU.TO: The minerals explorer said it intends to sell its non-core, non-ferrous projects in Sweden to Orex Minerals Inc REX.V in a cash-and-stock transaction to focus on its iron ore assets. [ID:nSGE69Q0I0]

* Ecopetrol ECP.TO: Colombia's state oil firm said on Tuesday that third-quarter net earnings rose 42.7 percent to 1.7 trillion pesos compared with the same period last year. [ID:nN26178202]

Analyst Recommendations

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

* Bankers Petroleum BNK.TO coverage started with sector perform rating; price target of C$8 at RBC

* Canada Bread CBY.TO price target cut to C$55 from C$57; rating outperform at RBC

* Canadian National Railway Co (CNR.TO) price target raised to C$74.50 from C$72; rating neutral at UBS

* Rogers Communications Inc (RCIb.TO) price target cut to C$44 from C$46; rating sector perform at RBC

* West Fraser Timber (WFT.TO) price target raised to C$41 from C$38; rating sector perform at RBC

$1=$1.03 Canadian Reporting by Bangalore Newsroom; Editing by Jeffrey Hodgson

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