Source: The Canadian Press
The Toronto stock market headed for a slightly higher open on Wednesday as a weaker U.S. currency helped boost commodity prices.
The Canadian dollar made headway against the American currency, up 0.33 of a cent to 101.05 cents US.
U.S. futures were lacklustre after investors took in earnings from financial sector heavyweights Goldman Sachs and Wells Fargo.
The Dow Jones futures were up nine points at 11,820, the Nasdaq futures were up 0.25 of a point to 2,331 and the S&P 500 futures dipped 2.9 points at 1,291.8.
The greenback fell against the loonie, the euro and other currencies as investors believe European officials will soon bolster the region’s plans for countering its debt crisis.
The February gold contract on the Nymex gained $7.20 to US$1,375.40 an ounce while the March copper contract in New York rose three cents to US$4.45 a pound.
Wells Fargo met earnings expectations as it reported fourth-quarter profit of US$3.4 billion, or 61 cents a share, compared with earnings of US$2.8 billion, or eight cents a share a year ago. The bank said revenue declined to US$21.5 billion from US$22.7 billion. Its shares dropped 1.5% in pre-market trading.
Goldman Sachs also matched analysts’ estimates as fourth-quarter net income fell to US$2.39 billion, or US$3.79 a share, down from US$4.95 billion, or US$8.20, a year ago. Its shares fell 2.7% in pre-market trading.
Meanwhile, Apple produced stellar holiday-quarter results by boosting production of iPads faster than analysts predicted, and shoppers bought iPhones as fast as Apple could make them, helping drive the company’s fiscal first-quarter net income up 78% from the prior year.
Apple sold 7.3 million iPad tablet computers — a million more than analysts expected — and its shares were ahead 2% in pre-market trading.
IBM also surprised, with net income of US$5.26 billion, or US$4.24 per share, topping analysts’ projections for US$4.08 per share. Its shares rose 2.65% ahead of the market open.
In Asia, the electronics sector bolstered indexes, mainly in Japan and Korea.
South Korea’s Kospi rose 0.9% to a record high close of 2,115.69.
Japan’s Nikkei 225 stock average added 0.4% while Hong Kong’s Hang Seng index climbed 1.1%.
London’s FTSE index dipped 0.07%, Frankfurt’s DAX was up 0.21% and the Paris CAC 40 was off 0.22%.
In other corporate news, Teck Resources (TSX:TCK.B) said Wednesday that it expects coal sales to range from five million to 5.5 million tonnes in the first quarter, which compared to 5.25 million tonnes in the same period a year earlier. It said that sales were impacted by poor weather conditions in southeast British Columbia and a mechanical failure at Westshore Terminals (TSX:WTE.UN).
Stocks head for slightly higher open on rising commodities, U.S. bank earnings
Wells Fargo, Goldman Sachs meet expectations
- By: Malcolm Morrison
- January 19, 2011 December 14, 2017
- 08:30