Oil Prices Weigh on Markets

Husky, Kinder in Focus

Stock futures for Canada's main stock index traded lower on Thursday pressured by a fall in oil prices, as U.S. crude production neared a record 12 million barrels per day in early January.

The S&P/TSX Composite Index picked up 64.98 points to end Wednesday’s session at 15,111.26. The index has gained nearly 800 points since the start of 2019, and has compiled a win streak of nine straight sessions.

The Canadian dollar retreated 0.18 cents at 75.24 U.S. early Thursday

March futures dragged 0.3% Thursday.

Husky Energy said it will not extend its hostile bid for MEG Energy after failing to get sufficient support from the rival oil producer's board and shareholders.

Kinder Morgan Canada said on Wednesday its quarterly profit from continuing operations more than doubled as the company benefited from strong performance in its pipeline and terminal business.

Bombardier aims to make a decision this year on the future of its CRJ regional jet as it "aggressively" pursues new orders to secure its industrial future, the Canadian planemaker's chief executive officer said on Wednesday.

Canaccord Genuity cut the price target on Iamgold to $8.50 from $9.00

National Bank of Canada cut the price target on Park Lawn Corp. to $30.00 from $32.00

ON BAYSTREET

The TSX Venture Exchange fell 0.2 points to 597.83. Despite Wednesday’s backward move, the index has still tacked on 40 points since the calendar year began.

ON WALLSTREET

U.S. stock futures fell on Thursday after Morgan Stanley’s latest quarterly results disappointed investors. Wall Street also grappled with uncertainty around the Chinese economy.

Futures for the Dow Jones Industrial Average fell 102 points, or 0.4%, to 24,049

Futures for the S&P 500 surrendered 10.75 points, or 0.4%, to 2,602.50

NASDAQ futures slid 23 points, or 0.4%, to 6,643.25

Futures fell to near their lows of the session after Morgan Stanley reported earnings and revenue that fell short of Wall Street estimates. Morgan Stanley shares dropped more than 4% in pre-market trading.

Morgan Stanley’s report comes a day after blockbuster earnings from Goldman Sachs and Bank of America. Goldman rose more than 9% on Wednesday, its biggest one-day gain in 10 years, while Bank of America climbed more than 7%.

Citigroup, J.P. Morgan Chase, and Wells Fargo also reported quarterly earnings this week. American Express and Netflix are scheduled to report after the close Thursday. Netflix’s earnings will arrive after the streaming giant announced it would raise monthly subscription prices by 13% to 18%, a move that was cheered by Wall Street earlier this week.

Thursday’s moves come after the major indexes posted solid gains in the previous session, lifted by the sharp gains in Goldman and Bank of America.

Concerns over China appeared to weigh on sentiment Thursday. China’s central bank made its biggest ever daily net cash injection via reverse repo operations, pumping $82.73 billion into the banking system. The news came after comments from the Chinese state planner and Premier Li Keqiang suggested the country would inject more stimulus amid concerns of a slowdown in economic growth.

On the data front, weekly jobless claims and Philadelphia Fed manufacturing figures are due at 8:30 a.m. ET.

Overseas, in Japan, the Nikkei 225 dipped 0.2% Thursday, while in Hong Kong, the Hang Seng index shed 0.5%

Oil prices gave back $1.08 to $51.23 U.S. a barrel.

Gold prices sank $1.40 to $1,292.40 U.S. an ounce.