Source: The Canadian Press

The Toronto stock market headed for a positive open Tuesday amid rising commodity prices and a positive start to the U.S. quarterly earnings reporting season.

Sentiment was improved by a pledge from Japan to support Europe’s bailout efforts.

The Canadian dollar benefited from higher prices for oil and metals, up 0.19 of a cent to 100.87 cents US.

U.S. futures were higher with the Dow Jones ahead 47 points to 11,634, the Nasdaq futures gained 11.5 points to 2,294 and the S&P 500 futures rose 5.2 points to 1,271.

Alcoa Inc. reported net income of US$258 million, or 21 cents a share, for the October-December quarter, which was two cents better than analysts had forecast. The company expects business to continue to improve, forecasting a 12% increase in global aluminum demand this year.

However, Alcoa warned that raw material costs will continue to rise. Alcoa shares were down about 1% in pre-market trading but the stock had run up about 7% in the first week of 2011 trading.

In Canada, Corus Entertainment Inc. (TSX:CJR.B) reported Tuesday that first-quarter revenue increased by 8% over last year to $240.6 million, with both its television and radio operations contributing to the growth. Net income was $46.2 million or 56 cents per share on a diluted basis, which was in line with analyst estimates, down from $73.9 million a year ago.

Stocks had closed negative Monday on reports that Portugal was being pressured by France and Germany to accept a bailout.

But investors were reassured after Japanese Finance Minister Yoshihiko Noda announced Tuesday that his country is “considering buying more than 20% of bonds” under a rescue fund to help Ireland. The European Financial Stability Facility, the eurozone’s rescue fund, is set to issue debt worth several billions of euros later this month to finance the cost of an international bailout of Ireland.

Noda’s words of support echo similar comments from China and come amid further evidence that the European Central Bank is taking a more active role in the crisis by buying up the bonds of Europe’s most indebted countries, like Portugal, Ireland and Greece in order to help keep a lid on yields.

Commodity prices advanced with the February crude contract on the New York Mercantile Exchange ahead 40 cents to US$89.65 a barrel.

The March copper contract on the Nymex climbed seven cents to US$4.33 a pound while the February bullion contract in New York rose $7.60 to US$1,381.70 an ounce.

Earlier in Asia, Japan’s benchmark Nikkei 225 stock average closed down 0.3%, South Korea’s Kospi rose 0.4% and Hong Kong’s Hang Seng index gained 1%.

London’s FTSE 100 index gained 1.19%, Frankfurt’s DAX was up 0.75% and the Paris CAC 40 advanced 0.95%.

In other corporate news, Bank of Montreal (TSX:BMO) has signed a definitive agreement to buy Hong Kong-based Lloyd George Management for an undisclosed amount. The bank said the investment manager has about US$6 billion in assets under management.

Talisman Energy Inc. (TSX:TLM) said it expects full-year exploration and development spending to remain steady at about US$4 billion for 2011. The Calgary-based energy producer also says it estimates that production will grow five to 10% for the year. Talisman said it had production of about 415,000 barrels of oil equivalent per day in 2010.

Jewelry company Tiffany & Co. is raising its full-year earnings guidance following better-than-expected holiday sales. The New York company, known for its little blue boxes, now expects full-year earnings between US$2.83 to US$2.88 per share, up from a prior forecast of US$2.72 to US$2.77 per share. It expects revenue for the year ending Jan. 31 to come in at nearly US$3.1 billion, above Wall Street’s US$3.05 billion.