TSX heads for higher open amid rising oil prices, positive earnings news

U.S. futures were positive ahead of the latest snapshot on employment with the Dow Jones industrial futures ahead 19 points to 12,935, the Nasdaq futures up 4.8 points to 2,583.5 and the S&P 500 futures gaining 0.9 of a point to 1,356.8.

The U.S. Labour Department was expected to report that jobless claims came in last week at 353,000, a rise on last week’s 348,000, which marked a three-year low. Traders hope this performance will translate into a third, straight month of job gains in excess of 200,000. The U.S. non-farm payrolls report for February comes out on March 9.

Meanwhile, the April crude contract on the New York Mercantile Exchange gained 40 cents to US$106.68 a barrel.

Prices have shot up from US$96 at the beginning of the month over mounting tension over Iran’s nuclear program.

Crude prices were down earlier in the day after a report showed U.S. crude supplies grew more than expected last week, suggesting demand remains sluggish.

The March copper contract was off two cents to US$3.81 a pound, retaining most of a 13-cent surge from earlier in the week after China’s central bank moved over the weekend to cut banks’ reserve ratios to loosen up lending and encourage growth. China is the biggest consumer of copper, which is viewed as an economic bellwether since it is used in so many businesses.

Bullion prices headed higher with the April contract up $5.20 to US$1,776.50 an ounce.

On the earnings front, Tim Hortons Inc. (TSX: THI) profit fell to $103 million, or 65 cents per share, from $377.1 million, or $2.19 per share, in the quarter of 2010, when it booked a gain from the sale of its joint venture Maidstone Bakeries. Quarterly revenues rose 21% to $779.8 million from $643.5 million in the year-earlier period. The coffee and doughnut chain also said it is increasing its quarterly dividend 23.5% to 21 cents.

Loblaw Companies Ltd. (TSX:L) posted fourth-quarter net earnings of $174 million or 62 cents per share, up 5.1% from a year earlier. Revenue grew 3.6% to $7.37 billion.

Forest products maker Cascades Inc. (TSX:CAS) had a net loss excluding special items of $4 million or four cents a share in the three months ended Dec. 31. That compared with net earnings of $17 million or 17 cents a share for the same period the previous year. Sales in the quarter rose 17% to $913 million.

Alamos Gold Inc. (TSX:AGI) increased its semi-annual dividend 43% to 10 cents per share. The miner also reported an increase in fourth-quarter earnings to US$21.3 million or 18 cents per share compared with US$18.3 million or 16 cents per share in the same prior-year period.

There was also some encouraging news from Europe where a closely-watched survey showed that the continent’s biggest economy continues to outperform much of the rest of the debt-hobbled continent. German business confidence rose for the fourth consecutive month as the Ifo institute said its confidence index was up to 109.6 points for February from 108.3 in January. Economists had predicted a more modest rise to 108.8.

European markets were mixed with London’s FTSE 100 index up 0.23%, Frankfurt’s DAX declined 0.42% and the Paris CAC 40 was off 0.07%.

Earlier in Asia, Hong Kong’s Hang Seng dropped 0.8% and South Korea’s Kospi lost one per cent. But Japan’s 225 Nikkei added 0.4% to close at its highest finish since early August, as the dollar traded near a seven-month high against the yen. That’s a positive sign for Japan’s powerhouse exporters, which have struggled amid a prolonged period of strength in the yen.

In mainland China, the benchmark Shanghai Composite Index added 0.3%, its highest close in three months, while the Shenzhen Composite Index advanced 0.5%.