Futures Higher as Global Markets Recover

CAE, Gibson in focus

Stock futures for Canada's main index edged higher on Tuesday, tracking a rebound in global equity markets but gains were capped by losses in energy shares due to fall in oil prices.

The S&P/TSX Composite Index lost 4.82 points to end Monday at 15,409.47

The Canadian dollar increased 0.2 cents to 77.19 cents U.S. early Tuesday

December futures inched up 0.1% Tuesday

CAE Inc said on Tuesday it expects global demand for pilots to rise with fleet growth and changing crew ratios, and the active combined airline and business jet pilot population will exceed half a million by 2028.

Credit Suisse raised the price target on Gibson Energy to $26.00 from $24.00

CIBC cut the price target on Pason Systems to $22.00 from $23.00

CIBC cut the price target on Tervita Corp. to $12.50 from $13.50

On the economic calendar, Statistics Canada reported that foreign investment in this country slowed to $2.8 billion in August, down from $15.3 billion in July.

At the same time, the agency says, Canadian investors reduced their holdings of foreign securities by $194 million as they acquired bonds but sold equities.

ON BAYSTREET

The TSX Venture Exchange climbed 12.76 points, or 1.8%, Monday to 711.36

ON WALLSTREET

U.S. stock index futures indicated a higher open Tuesday after the release of strong quarterly results from some of the largest U.S. companies.

Futures for the Dow Jones Industrials rocketed 153 points, or 0.6%, to 25,354

S&P 500 futures moved higher 14.5 points, or 0.5%, to 2,763.50, while futures for the NASDAQ composite moved skyward 58.25 points, or 0.8%, to 7,134.75

Morgan Stanley jumped more than 2.5% after reporting better-than-expected earnings. Goldman Sachs' profits also beat estimates, sending the stock up 1%. BlackRock posted mixed quarterly results, as earnings topped estimates while sales missed. Dow-member Johnson & Johnson posted better-than-expected earnings.

Netflix is also expected to report after the bell Tuesday.

Investors came into the earnings season with high hopes. Analysts are expecting third-quarter S&P 500 earnings to have grown by 19%.

However, Dow-component WalMart slashed its fiscal 2019 earnings forecast on Tuesday, citing its Flipkart acquisition. The earnings season comes as Wall Street tries to recover from sharp losses seen last week.

On the data front, the U.S. Redbook data is due at 8:55 a.m. ET, followed by the industrial production numbers at 9:15 a.m. ET, and the Housing Market Index and the JOLTS numbers at 10 a.m. ET.

Overseas, in Japan, the Nikkei 225 improved 1.3% Tuesday, while in Hong Kong, the Hang Seng nicked higher 0.1%.

Oil prices descended 46 cents to $71.32 U.S. a barrel.

Gold prices gained $3.20 to $1,233.50 U.S. an ounce.