August 2, 2013 / 12:52 PM / 6 years ago

CANADA STOCKS-TSX may open lower after U.S. payrolls data

Aug 2 (Reuters) - Canada’s main stock index looked set to reverse the previous session’s gains and open lower on Friday, with investors cautious following the release of softer-than-expected U.S. payrolls data.


* U.S. employers slowed their pace of hiring in July but the jobless rate fell anyway, mixed signals that could make the U.S. Federal Reserve more cautious about drawing down its huge economic stimulus program.

* Dell Inc’s special committee and the buyout group led by company founder and Chief Executive Michael Dell are nearing a deal that would include an offer price of $13.75 per share and a special dividend of 13 cents, a source familiar with the matter said.

* Viacom Inc reported a 14 percent rise in third-quarter revenue on strong advertising and affiliate fees at its cable networks.

* Toyota Motor Corp took a cautious stance on its profit outlook, worried over currency moves and a slowdown in Thailand and other emerging markets, even as healthy earnings on overseas sales lifted it to a near-record quarterly profit.

* Fairfax Financial Holdings Ltd, the property and casualty insurer run by investment guru Prem Watsa, on Thursday reported a second-quarter loss due to losses on its bond portfolio.


* Canada stock futures traded down 0.14 percent

* U.S. stock futures , , were up around 0.12 percent and 0.39 percent

* European shares, were mixed


* Thomson Reuters-Jefferies CRB Index : 285.1103; fell 0.18 percent

* Gold futures : $1,286; fell 1.91 percent

* US crude : $107.76; fell 0.12 percent

* Brent crude : $109.16; fell 0.35 percent

* LME 3-month copper : $7,048; rose 0.7 percent


* Turquoise Hill : The company does not need to seek Mongolian parliamentary approval for a $4 billion financing package to fund development of an underground mine at the Oyu Tolgoi copper project, Mongolia’s prime minister said. [ID: nL4N0G319K]


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

* Bombardier : JP Morgan cuts target price to C$5 from C$5.50; cites cash flow risks, cash burn from development spending from CSeries dilution.

* Constellation Software Inc : National Bank Financial ups target to C$175 from C$150, citing the company’s solid acquisition strategy.

* Gildan Activewear Inc : National Bank Financial raises price target to C$55 from C$50 after the company reported better-than-expected third-quarter earnings per share, says new capacity extends the growth outlook.

* TransCanada Corp : National Bank Financial raises price target to C$53 from C$50 after the company confirmed its $12 billion Energy East pipeline, ahead of final regulatory approvals which are not expected until late 2014.

* Vermilion Energy Inc : National Bank Financial cuts to sector perform from outperform on valuation but raises price target to C$60 from C$54, citing its strong second-quarter results and updated outlook.


* No major Canadian economic data scheduled for the day

* Major U.S. events and data includes payrolls data personal income and consumption, core PCE index, factory orders and durable goods

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