Canadian stocks looked set to open higher on Thursday, helped by Chinese factory data and minutes from the recent Federal Reserve meeting that suggested the U.S. Central Bank will maintain some monetary support for the world's largest economy.
The S&P/TSX composite index climbed 124.67 points to end Wednesday’s session at 14,649.86, with June futures up 0.1% Thursday.
The Canadian dollar was steady at 91.64 cents U.S. early Thursday.
Royal Bank of Canada reported a 15% rise in quarterly profit, driven by strong domestic lending volumes and capital markets revenue.
Toronto-Dominion Bank said its quarterly profit rose 16% on the back of strong Canadian and U.S. retail lending.
Canaccord Genuity raised the target price on Altus Group to $24 from $23, with a buy rating
China's factory sector turned in its best performance this year in May but still contracted for the fifth straight month.
On the domestic economic slate, Statistics Canada reported this morning that retail sales edged down 0.1% in March to $41.1 billion. Sales were lower at motor vehicle and parts dealers and clothing and clothing accessories stores.
However, the agency also says these declines were largely offset by gains at gasoline stations and food and beverage stores.
StatsCan also reported that 509,800 people received regular Employment Insurance benefits in March, little changed from February.
The nation’s number crunchers say the number of beneficiaries has been relatively stable since May 2013, following a long-term downward trend that began in the summer of 2009.
ON BAYSTREET
The TSX Venture Exchange remained positive 3.96 points Wednesday to 972.41.
ON WALLSTREET
The retail sector remains in the spotlight on Wall Street as more earnings roll in.
Ahead of the opening bell, futures for the Dow Jones Industrials inched up four points to 16, 503. Futures for the S&P 500 gained 0.90 points at 1,885.50, and futures for the NASDAQ picked up 2.5 points to 3,636.
Shares of two troubled retailers, Best Buy and Sears Holding Group fell in pre-market trading after the companies reported quarterly results that raised new worries for investors.
Best Buy reported that sales at stores open at least a year fell in the first quarter and are likely to be down in the second and third quarter as well.
Sears Holdings, which operates the Kmart and Sears brands, announced the pace of store closings picked up to 80 closings in the first quarter and that further store closings are possible the rest of this year.
Shares of Urban Outfitters, which have plunged by roughly 10% since the fashion house reported disappointing earnings Tuesday, also were sharply lower in premarket trading again Thursday.
Two more retailers, Gap, Aeropostale are due to report after the close Thursday, as is tech giant Hewlett-Packard
McDonald's is also a focus point for investors and protesters Thursday as the fast-food operator holds its annual shareholder meeting in Oak Brook, Illinois.
Over 100 people were arrested outside the McDonald's corporate campus Wednesday as they protested for higher wages. There could be more arrests Thursday as protesters are promising to return.
Investors will also receive a mix of economic data: The U.S. Department of Labor will release its weekly report on initial unemployment claims. Meanwhile, the National Association of Realtors report on April's existing home sales will be released at 10 a.m. ET.
European markets weren't making any big moves in midday trading, though shares inSABMiller were up by 4% in London after the brewer released earnings. Meanwhile, shares in postal service Royal Mail fell by as much as 8% after reporting its latest set of quarterly results.
Asian markets closed mostly higher, buoyed by a bullish performance in the U.S. and better-than-expected manufacturing data from China.
Oil prices dipped 12 cents to $103.95 U.S. a barrel
Gold prices gained $9.30 to $1,297.40 U.S. an ounce.
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