Source: The Canadian Press

The Toronto stock market is expected to be negative at the open on Thursday as oil prices fell sharply for a third day amid worries about a slowing economic revival.

The Canadian dollar moved lower, down a fifth of a US cent to 95.47 cents US.

U.S. futures also indicated further losses after Cisco Systems added to investors’ anxiety by reporting revenue figures that fell short of forecasts.

The Dow Jones industrial futures declined 31 points to 10,306, the Nasdaq futures lost five points to 1,832.75 and the S&P 500 futures were down 4.3 points to 1,080.7.

The negative outlook for the session followed a selloff on North American markets on Wednesday after the Federal Reserve lowered its assessment of the American economic recovery. Investors were also dismayed by data showing a slowdown in the Chinese economy during the second quarter.

The TSX tumbled 256 points while the Dow Industrials fell 265 points.

After the market close, investors took in news that Cisco Systems Inc.’s revenue from its latest quarter and its forecast for future revenue both fell short of analysts’ expectations. The company’s stock fell about 7.5% in pre-opening trading in New York.

Oil prices moved lower despite data on Wednesday showing a draw in U.S. crude oil stocks last week.

Analysts said the figures could not be taken at face value.

“This week’s (Department of Energy) report did nothing to change the perception that oil is a commodity in abundant supply that has only rallied recently on the back of gains in the euro, the stock market or both,” said a release from U.S energy consultancy Cameron Hanover.

“Crude oil stocks fell, but they have been at their highest levels for the end of July in years.”

A stronger U.S. dollar helped push the September crude contract on the New York Mercantile Exchange down $1.12 to US$76.90 a barrel. Crude has fallen more than 5% this week.

The September copper contract on the Nymex was unchanged at US$3.26 a pound but December gold gained $7.20 to US$1,206.40 an ounce.

In overseas trading, Japan’s benchmark Nikkei 225 stock average closed down 0.9% and Hong Kong’s Hang Seng retreated 0.9%. The Shanghai Composite Index dropped 0.7%.

London’s FTSE 100 index was up 0.26%, Frankfurt’s DAX lost 0.23% while the Paris CAC40 was down 0.31%.

On the earnings front, Tim Hortons Inc. (TSX:THI) reported second-quarter profits rose 21% to $94.1 million. Revenues increased 5.7% to $639.9 million. The company also said it will sell its 50% interest in Maidstone Bakeries to its joint venture partner for $475 million.

T-shirt maker Gildan Activewear Inc. (TSX:GIL) says higher sales of its clothing drove profits higher in the third quarter. The Montreal-headquartered company, which reports in U.S. dollars, earned US$64.7 million or 53 cents per share, up from $41.5 million or 34 cents per share a year ago. The T-shirt, sock and clothing producer says overall sales rose to $395.3 million from $307.8 million.

And General Motors Co. said Thursday it made US$1.33 billion in the second quarter, a sign of growing strength as the company prepares to sell stock to the public. It is GM’s second straight quarterly profit. The company made $865 million in the first quarter. No date has been set for the stock sale.