Canadian stock index futures pointed to a higher open on Wednesday on news that U.S. President Barack Obama has tapped Janet Yellen to head the Federal Reserve, though concerns over the impact of a budget deadlock could put a lid on gains.
The S&P/TSX composite index dropped 95.84 to close out Tuesday at 12,692.41. Futures traded 0.3% Wednesday morning.
The Canadian dollar fell 0.10 cents to 96.33 cents U.S. early Wednesday
Mexico's government will tender three passenger train projects next year worth 97 billion pesos, two of which will service the capital's sprawling metropolitan area. Bombardier will likely bid on each of the rail projects, the company's Mexico chief said in June.
Piper Jaffray raised the price target on the U.S. listed shares of Agrium Inc. to $93 from $90, saying the recently-closed Viterra acquisition and the Vanscoy potash expansion project represent company specific growth catalysts over the next two years.
Credit Suisse cut the target price of the U.S. listed shares of Ritchie Bros. Auctioneers Inc. to $18 from $20 after the company's announcement that the CEO is stepping down in 2014.
ON BAYSTREET
The TSX Venture Exchange fell 8.16 points Tuesday to 939.36
ON WALLSTREET
Janet Yellen's nomination as next chair of the U.S. Federal Reserve may bring some relief for investors Wednesday, after concerns about the looming debt ceiling crisis led to two days of selling.
Ahead of the opening bell, futures for the Dow Jones Industrials gained 33 points, or 0.2%, to 14,747. Futures for the S&P 500 picked up 4.1 points, or 0.3%, to 1,654.50, and futures for the NASDAQ took on 3.5 points, or 0.1%, to 3,154.25
The Dow Jones industrial has dropped 353 points since the partial shutdown of the federal government began on Oct. 1.
Alcoa shares rose nearly 4% in pre-market trading after the aluminum producer's earnings beat expectations.
Shares of Yum! Brands, meanwhile, plunged more than 7% after the operator of KFC, Taco Bell and Pizza Hut reported weak earnings and continued problems in its China division.
Costco missed on revenue and reported a slight bump in same store sales. Earnings per shares came in better than expected.
Retailer Family Dollar beat earnings forecasts, while revenue was roughly in line with estimates.
Yellen is expected to be nominated by President Obama at 3 p.m. ET. She has long been a favoured candidate for the position and shares much of current chairman Ben Bernanke's thinking on loose monetary policy.
An hour before the Yellen announcement, investors will get a look at the minutes of the Federal Reserve's most recent policy meeting. The document will be closely scrutinized for clues about the central bank's plans for its bond-buying program.
European markets declined in morning trading, while Asian markets mostly ended with gains. Japan's benchmark Nikkei 225 index popped up by 1%.
Oil prices subtracted six cents to $103.46 U.S. a barrel
Gold prices slid $14.30 to $1,310.30 U.S. an ounce.
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