The Toronto stock market headed for a lower open Thursday as traders hope that the U.S. Federal Reserve will deliver another round of stimulus to help lift a struggling economy.
The S&P/TSX Composite index gained 12.17 points to end Wednesday at 12,232.62
The Canadian dollar inched higher Thursday morning by 0.04 cents to 102.48 cents U.S.
In corporate news, travel company Transat AT Inc. reported quarterly profit of $9.4 million or 25 cents a share, compared to a year ago loss of $2.8 million. Revenue was down three per cent from a year earlier to $909.1 million.
Empire Company Ltd. says its first-quarter profit rose to $108.9 million or $1.60 per share, up from $89.2 million or $1.31 per share a year earlier. The Nova Scotia-based company is best known for its Sobeys grocery stores but it also is involved in other retail operations, movie theatres and real-estate. Revenue for the company was up 9.7% to $4.56 billion, thanks in part to the acquisition of 236 retail gas locations and convenience stores.
The U.S. Department of Justice is asking satellite technology company MacDonald, Dettwiler and Associates Ltd. to shed some more light on its $875-million U.S. takeover bid for California-based Space Systems/Loral Inc. The deal, which the company has called “a game changer” will boost MacDonald, Dettwiler’s role as a supplier of commercial communications satellites.
A New Jersey court has dismissed a lawsuit filed by Fairfax Financial Holdings Ltd. that accused a group of hedge funds of conspiring with financial analysts to drive down its share price. New Jersey Superior Court Judge Donald Coburn dismissed the Toronto-based insurance and financial services company’s case with prejudice, preventing similar claims in the future, but without costs, on Wednesday. Fairfax said it would appeal the decision.
In the economic docket, Statistics Canada’s New Housing Price Index rose 0.1% in July, after a 0.2% increase in June.
ON BAYSTREET
The TSX Venture Exchange advanced 8.05 points Wednesday to 1,282.62
ON WALLSTREET
U.S. stocks were poised for a slightly lower open Thursday, as investors wait to hear whether the Federal Reserve is planning any new stimulus action to boost the economy.
Futures for the Dow Jones Industrials skidded 21, or 0.2%, to 13,340, about 30 minutes before the opening bell. Futures for the S&P 500 dipped 2.7 points, or 0.2%, to 1,436.80, and for the Nasdaq, futures surrendered 5.75 points, or 0.2%, to 2,790.50.
The Federal Open Market Committee will release its policy statement at 12:30 p.m. ET, followed by a press conference with Fed chair Ben Bernanke at 2:15 p.m. ET. Hopes have been running high for the central bank to announce a new round of bond buying, known as quantitative easing or QE3.
Bernanke suggested in a speech late last month that the Fed was prepared to put forth a new asset-purchasing program. The weak August jobs report added weight to that argument.
Ahead of the opening bell Thursday, the U.S. Labor Department reported initial jobless claims increased to 382,000 for the week ended September 8, up 15,000 from the week earlier, and worse than expected.
Anticipation of the Fed's decision weighed on markets around the world. European markets were mixed in afternoon trading. Asian markets were also mixed as markets closed Thursday ahead of the news. The Hang Seng ended in the red, while the Shanghai Composite and Japan's Nikkei edged higher.
Oil prices held steady Thursday despite mounting pressure in the Mideast, rising to $97.37 U.S. a barrel.
Gold futures for December delivery rose $3.60 to $1,737.30 U.S. an ounce.
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