The Toronto stock market headed for a positive open Friday amid higher commodity prices and solid earnings results from General Electric and Google.
The Canadian dollar rose 0.17 of a cent to 100.46 cents US.
U.S. futures signalled a strong start to the session with the Dow Jones futures ahead 46 points to 11,820, the Nasdaq futures gained 12.5 points to 2,294 and the S&P 500 futures advanced 6.2 points to 1,283.
General Electric Co. said Friday its fourth-quarter income increased 52% to US$4.46 billion or 42 cents a share on strong growth in equipment orders. It also cited improvement in its lending business. Earnings from continuing operations were 36 cents a share, a four-cent improvement on what analysts were expecting.
Google Inc. earned US$2.5 billion, or $7.81 per share, during the final three months of 2010, up 29% increase from a year ago.
Excluding stock-compensation expenses, Google says it earned US$8.75 per share, which topped the average analyst estimate of US$8.06 per share.
Commodity prices started to recover from losses which piled up on Wednesday following news that fourth quarter economic growth in China was stronger than expected, raising fresh concerns about how a slowing economy would affect demand for commodities.
The strong data fuelled speculation that China’s monetary authorities will have to do more to cool the economy and ease inflationary pressures.
Chinese inflation has become “a key issue for global markets,” according to a report by Bank of America Merrill Lynch Global Research.
“Manufactured export prices are rising again, as domestic costs — especially unskilled wages — are passed down the supply chain,” the report said.
“China’s competitiveness is adjusting through cost and wage inflation, rather than currency appreciation.”
Overseas, Japan’s Nikkei 225 stock average lost 1.6%, Australia’s S&P/ASX 200 dropped 0.6%, while Hong Kong’s Hang Seng fell 0.5%, South Korea’s Kospi shed 1.7% and Singapore’s index declined by 0.6%.
Chinese shares, which took a beating Thursday, bucked the trend, with the benchmark Shanghai Composite up 1.4%.
The March crude contract on the New York Mercantile Exchange rose 19 cents to US$89.78 a barrel.
Gold prices were slightly lower with the February bullion contract on the Nymex down $1.60 to US$1,344.90.
The March copper contract in New York rose two cents to US$4.29.
London’s FTSE 100 index gained 0.68%, Frankfurt’s DAX rose 0.98% and the Paris CAC 40 was ahead 1.62%.
In other corporate news, nuclear medicine supplier Nordion Inc. (TSX:NDN) has returned to profitability for the first time as an independent company and will begin paying a dividend to shareholders in April after blowing past analyst estimates. The Ottawa-based company posted a $15.7-million profit in the quarter, a big improvement from the $58.6 million loss racked up a year ago.
American and Canadian competition watchdogs have indicated they won’t intervene to block the takeover of Western Coal in a deal that values the Vancouver-based mining company at C$3.3 billion. Walter Energy of Tampa, Fla. (NYSE:WLT) is offering $11.50 in cash or 0.114 of a Walter share. The deal still requires a favourable vote by Western Coal shareholders and the approval of a Canadian court.
Apogee Minerals Ltd. (TSXV:APE) has agreed to purchase Pulacayo-Paca silver project in southern Bolivia from Golden Minerals Co. (TSX:AUM) through a cash and share transaction valued at about $3.5 million.
Stock markets head for higher open amid higher commodities, positive GE earnings
Google earnings beat analyst expectations
- By: Malcolm Morrison
- January 21, 2011 December 14, 2017
- 08:42