Source: The Canadian Press
The Toronto stock market is poised to open higher Tuesday following upbeat earnings from some key Canadian companies.
Rogers Communications Inc. (TSX:RCI.B) increased both profit and revenue in the second quarter, while CGI Group Inc. (TSX:GIB.A) and Talisman Energy Inc. (TSX:TLM) both reported higher net income.
The price of oil added 32 cents to US$79.30 a barrel, while gold edged up 10 cents at US$1,183.20 an ounce.
The Canadian dollar climbed 0.59 cent to 97.45 cents US.
News that BP reported its biggest quarterly loss in its history didn’t have much impact on futures trading in New York. An announcement that American Bob Dudley will take over from Tony Hayward as CEO of the embattled company seems to have offset the US$17-billion second-quarter loss.
Ahead of the opening bell, Dow Jones industrial average futures rose 0.5%. Standard & Poor’s 500 index futures rose 0.5% while Nasdaq 100 index futures rose 0.4%.
Futures were also boosted after chemical maker DuPont Co. became the latest company to easily top second-quarter profit and revenue forecasts, adding to a string of earnings reports in recent days that have shown the economy might not be slowing as much as investors had anticipated.
DuPont also raised its profit outlook for the year. Such outlooks have been a boon to the market because they indicate companies are gaining confidence in a global economic recovery.
Some major European banks, including UBS AG and Deutsche Bank AG, reported strong earnings as well. The results came a few days after banks across the continent were reviewed to see which would survive another economic downturn. Major European indexes rose following the earnings and another positive report on Germany’s economy.
However, a report on U.S. consumer confidence due out later Tuesday could temper the upbeat mood in the market. The Conference Board report is expected to show its consumer confidence index dipped again in July, falling to 51.0 from 52.9. Last month, the index posted its largest drop since February, which helped push stocks sharply lower.
In Canadian corporate news, the board of Tomkins PLC has given its blessing for a $4.5-billion takeover offer from Onex Corp. (TSX:OCX) and the Canada Pension Plan Investment Board, which have teamed up to buy the U.K.-based global manufacturing company.
Rogers Communications Inc. (TSX:RCI.B) increased both profit and revenue in the second quarter. Net income for the Toronto-based wireless, cable and media company was up 21% from a year earlier, rising to $451 million, while revenue rose 5% to $3.03 billion.
Talisman Energy Inc. (TSX:TLM) reported a big jump in second-quarter net income, to $603 million compared with $63 million a year earlier.
Currency fluctuations had a negative impact on third-quarter revenue at CGI Group Inc. (TSX:GIB.A), but its profit was up 12% from a year earlier to $85.9 million.
Overseas, Britain’s FTSE 100 rose 0.8%, Germany’s DAX index gained 0.6%, and France’s CAC-40 rose 1.2%. Japan’s Nikkei stock average fell 0.1%.