TORONTO, (Reuters) - Toronto’s main stock index may open lower on Wednesday as a rash of weaker quarterly earnings and a pullback in oil prices could unsettle investor sentiment and weigh on the resource-heavy index.
A decline in stocks could also be driven by equities in the United States, where stock index futures fell as investors seek insight into the health of the economy a day after disappointing consumer confidence data. [ID:nN28289100]
The S&P/TSX composite index .GSPTSE, which has closed lower in three-straight sessions, fell 181.34 points, or 1.61 percent, to 11,053.54 on Tuesday.
Here is some news that could affect the market:
NEXEN INC NXY.TO
Nexen Inc’s third-quarter profit fell 86 percent as oil prices tumbled from the lofty levels of a year earlier, Canada’s fourth-largest independent oil explorer said on Wednesday. [ID:nBNG449399]
CANAM GROUP INC CAM.TO
Construction products maker Canam Group Inc reported a 71 percent drop in quarterly profit, which also came in below market expectations, reflecting a slowdown in non-residential construction. [ID:nBNG461504]
MAGNA INTERNATIONAL MGa.TO
Magna International said it can clinch a contract to buy a majority stake in carmaker Opel from General Motors [GM.UL] even as GM’s board weighs its final choice, Magna’s co-chief executive said. [ID:nLS394885]
CANWEST GLOBAL COMMUNICATIONS CORP CGS.TO
Canada’s Canwest Global Communications Corp said late on Tuesday it would transfer its assets of National Post to a new entity, pending court approval, as part of its process to recapitalize the whole company. [ID:nBNG224376]
METHANEX CORP (MX.TO)
Methanex Corp, the world’s largest producer of methanol, on Tuesday reported a third-quarter loss, hurt in part by unplanned outages at its Chile and Trinidad plants. [ID:nBNG545042]
OPEN TEXT CORP OTC.TO
Business software maker Open Text Corp posted an 88-percent drop in quarterly profit on Tuesday as C$18.6 million ($17.5 million) in unspecified charges offset the impact of stronger revenue. [ID:nN27263987]
OIL PRICES SLIDE
Oil fell below $79 a barrel on Wednesday, pressured by weaker equities and a stronger U.S. dollar. [O/R]
GOLD PRICES STEADY
Gold prices held near $1,035 an ounce in Europe on Wednesday, little changed from the previous session, as the U.S. dollar steadied against the euro after hitting a two-week high earlier this week. [GOL/]
Following is a summary of research actions on Canadian companies reported by Reuters. For more, please double click [RCH/CA]
* Genuity raises Rogers Communications (RCIb.TO) price target 3 percent to C$33 with a “hold” rating.
* Raymond James upgrades Canadian Pacific Railway Ltd (CP.TO) to “outperform” from “market perform.”
($1=$1.08 Canadian) (Reporting by Frank Pingue; Editing by Padraic Cassidy)