Source: The Canadian Press

The Toronto stock market could be in for a lower open as economic worries depress commodity prices, although the strength of CIBC’s quarterly earnings report early Wednesday could provide lift to the financial sector.

The U.S. dollar moved higher against other currencies, pushing the Canadian dollar down 0.44 of a cent to 93.87 cents US.

U.S. futures pointed to a lower open ahead of another key housing report and data on durable goods orders.

The Dow Jones industrial futures lost 25 points to 9,998, the Nasdaq futures were down 5.75 points to 1,768 while the S&P 500 futures drifted 2.5 points lower to 1,047.3.

CIBC (TSX:CM) reported that net income rose to $640 million in the fiscal third quarter, up from $434 million a year ago, as revenue held steady and the bank took fewer provisions for credit losses.

Excluding one-time items, the bank’s earnings were equal to $1.66 per share, beating consensus analyst expectations of $1.53 per share, according to Thomson Reuters


The financial sector had retreated on Tuesday after Bank of Montreal (TSX:BMO) reported a third-quarter profit of $669 million, up 20% from a year ago but short of analyst expectations.

The TSX fell 161 points Tuesday as bank stocks lost ground, while the general market retreated in the wake of U.S. data that showed sales of previously occupied homes fell to a 15-year low in July, adding to concerns that the economy could fall back into recession.

On Wednesday, the U.S. Commerce Department is expected to report that sales of new homes were likely flat in July compared with a month earlier. June sales rebounded to an annual rate of 330,000, topping forecasts, after hitting a record low in May.

A separate report on durable goods orders is expected to show sales of goods designed to last at least three years rose 2.8% in July compared with June. Excluding volatile transportation orders, sales likely rose 0.5%.

Meanwhile, oil prices rose dipped slightly, adding to a 13% fall over three weeks. The October contract on the New York Mercantile Exchange dipped six cents to US$71.57 after the American Petroleum Institute released figures late Tuesday that showed an unexpected draw of 1.85 million barrels in crude inventories last week. AT the same time, gasoline supplies rose by 692,000 barrels.

Copper prices continued to weaken on demand concerns with the September copper contract on the Nymex down four cents to US$3.20 a pound.

Gold moved higher with the December contract in New York ahead $5.50 to US$1,238.90 an ounce.

In overseas trading, Tokyo’s Nikkei 225 stock average lost 1.7% as the yen hit a 15-year high against the U.S. dollar and a nine-year peak against the euro.

The fear is that the country’s high-value exporters will find it increasingly difficult to compete in the international marketplace. Figures Wednesday showed that Japan’s exporters are already feeling the pinch — export growth slowed for the fifth consecutive month in July.

China’s benchmark Shanghai Composite Index fell 2% while Hong Kong’s Hang Seng dropped 0.1%.

London’s FTSE 100 index slipped 0.77%, Frankfurt’s DAX was down 0.39% while the Paris CAC 40 declined 0.91%.