The Toronto stock market headed for a sharply lower open Friday after worse-than-expected results from Apple Inc. deepened the disappointment about overall third-quarter earnings.
The S&P/TSX composite ended Thursday up 105.21 points to 12,300.23
The Canadian dollar dipped 0.08 cents Friday morning to 100.44 cents U.S.
It was a quiet morning for earnings news in Canada, a day after the TSX netted a 105-point gain amid strong reports from gold producers Goldcorp Inc. and Agnico-Eagle Mines and energy whiz Nexen Inc.
On Thursday after the close, financial services company Fairfax Financial Holdings Ltd. reported that its third-quarter profits plummeted more than 96% to $34.6 million or 90 cents a share as it faced losses on its equity hedges.
Traders will take in earnings during the day from power generator TransAlta Corp. and gold miner Eldorado Gold Corp.
ON BAYSTREET
The TSX Venture Exchange grew 16.79 points Thursday to 1,305.54
ON WALLSTREET
Stock futures trimmed earlier losses Friday, as investors weigh the latest corporate earnings against a stronger-than-expected report on U.S. economic growth.
Futures for the Dow Jones Industrials doffed 30 points, or 0.2%, to 13,026, about 30 minutes before the opening bell. Futures for the S&P 500 faded 1.60 points, or 0.1%, to 1,406.60, and for the Nasdaq, futures gained 1.25 points, or 0.05%, to 2,649.25
Gross domestic product, the broadest measure of economic activity, rose at a 2% annual rate in the third quarter, according to government data. The figure was higher than the 1.7% rate economists had forecast and came after GDP grew 1.3% in the second quarter.
Apple, one of the most widely held stocks in the S&P 500, reported quarterly results that missed expectations, despite predictions for a strong fourth quarter. Additionally, Amazon reported a narrower-than-expected loss but missed on sales.
As quarterly results continue to roll in, investors have been sidelined by weaker-than-expected sales growth and tepid guidance for the current quarter. In addition, traders have become risk-averse ahead of the U.S. presidential election while concerns about the fiscal cliff continue to weigh on the market.
Later in the morning, the University of Michigan will release the final version of its consumer sentiment index for October.
European stocks were mixed. Britain's FTSE 100 fell 0.5%, while the DAX in Germany and France's CAC 40 were little changed.
Spain's IBEX 35 was down 0.8% after government statistics showed Spanish unemployment rose to a record high of 25% in the third quarter.
Meanwhile, Asian markets ended lower. The Shanghai Composite tumbled 1.7%, the Hang Seng in Hong Kong sank 1.2%, and Japan's Nikkei 225 went down 1.3%.
Oil for December delivery rose 16 cents to $86.19 U.S. a barrel.
Gold futures for December delivery dropped $3.40 to $1,709.40 U.S. an ounce.
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