The Toronto stock market appeared set to head higher Friday amid rising commodity prices.
But Research In Motion (TSX:RIM) (NASDAQ:RIMM) will be a weight on the TSX after the BlackBerry maker disappointed investors with much lower profits and a delay on delivering its new generation of BlackBerrys to consumers until late next year.
Co-CEO and co-chairman Mike Lazaridis said Thursday that the delay in launching the company’s new smartphone is caused by the chipset that will power the new BlackBerry 10.
RIM reported a third-quarter net profit of only US$256 million, compared to $911 million for the same period last year and its shares were down about 10 per cent in pre-market trading in New York.
The Canadian dollar rose 0.51 of a cent to 97.06 cents US.
U.S. futures were positive, supported by improving U.S. economic indicators and the approval in Italy of an austerity plan intended to get the country’s finances under control.
The Dow Jones industrial futures gained 68 points to 11,890, the Nasdaq futures gained 14.75 points to 2,238 and the S&P 500 futures were ahead 9.1 points to 1,220.8.
The TSX shed 39 points on Thursday as investor nervousness about Europe’s government debt crisis pushed commodity prices and resource stocks lower.
But the loss took place against a backdrop of positive U.S. data, including a report showing the number of people applying for unemployment benefits dropped sharply last week to the fewest since May 2008.
Traders were also encouraged by two strong regional manufacturing reports.
There was relief Friday after the Italian government won a critical confidence vote in the lower house of parliament on a €30 billion austerity package.
The plan aimed at persuading bond markets that the country can emerge from the widening European debt crisis. The country now sits on €1.9 trillion of debt that could spark a global economic recession if a default occurs.
Commodity prices advanced after two days of steep declines with the January crude contract on the New York Mercantile Exchange up 43 cents to US$94.30 a barrel.
Metal prices also advanced with the March copper contract up eight cents to US$3.35 a pound.
Bullion rose $21.50 to US$1,598.70 an ounce.
European markets were positive with London’s FTSE 100 index ahead 0.6 per cent, Frankfurt’s DAX rose 0.06 per cent and the Paris CAC 40 gained 0.12 per cent.
Earlier in Asia, Japan’s Nikkei 225 index was 0.3 per cent higher, South Korea’s Kospi rose 1.2 per cent and Hong Kong’s Hang Seng added 1.4 per cent.
Mainland China shares ended a six-session losing streak, with the benchmark Shanghai Composite Index gaining two per cent.
In other corporate news, Valeant Pharmaceuticals International Inc. (TSX:VRX) has made a hostile offer for Irvine, Calif.-based ISTA Pharmaceuticals Inc. for $327 million, including debt.
Global miner Iamgold Corp. (TSX:IMG) said it has settled a minor labour disruption at its Essakane Mine in Burkina Faso, which began earlier this week at the West African operation. The Toronto company says gold production at the mine was not materially affected and the company maintains its production guidance for the year.