Stock futures pointed to a higher opening for Canada's main stock index, tracking the rally in global stock markets caused by signs of further monetary support from the European Central Bank.
The S&P/TSX composite index gained 173.92 points, or 1.3%, to close Thursday at 13,878.11
The Canadian dollar added 0.1 cents to 76.47 cents U.S. early Friday
Thomson Reuters Corp reported higher quarterly net profit even as revenue dipped, hurt by foreign currency, and it reaffirmed its full-year forecast. Third-quarter net earnings were $293 million, or 36 cents per share, compared with $250 million, or 28 cents per share, a year ago. Adjusted for special items, earnings were 52 cents per share
The controversy surrounding Valeant Pharmaceuticals’ strategy and its market slide this week are bad news for Wall Street investment banks that stand to lose one of their best clients. The company has emerged as the fifth largest payer of investment banker fees over the past three years thanks to its rapid acquisition-driven and debt-financed expansion that has made it a darling of investors.
CIBC cut the target price on Corus Entertainment Inc to $15 from $16.50 as the company, for the first time, reported quarterly results that met/exceeded expectations.
CIBC raised the target price on Rogers Communications to $54.00 from $50.00 after the company’s third-quarter results that were essentially in line on consolidated revenue and EBITDA, but ahead on basic EPS owing to a lower tax rate.
BMO initiated coverage on TransCanada Corp at outperform and $56.00 target price, believes the company’s growth guidance could be significantly enhanced or extended.
Canadian Utilities reports Q3 earnings, expecting 39 cents per share
On the economic front, Statistics Canada reported that the consumer price index rose 1.0% in the 12 months to September, after increasing 1.3% in August. On a seasonally-adjusted monthly basis, the Consumer Price Index decreased 0.2% in September, after posting no change in August.
ON BAYSTREET
The TSX Venture Exchange moved higher 3.31 points Thursday to 547.75
ON WALLSTREET
Stock futures surged to end the week
Ahead of the opening bell, futures for the Dow Jones jumped 150 points, or 0.9%, to 17,558, futures for the S&P 500 hiked 15.5 points, or 0.8%, to 2,068.5, and futures for the NASDAQ leaped 61.5 points, or 1.4%, to 4,614.25
Amazon, Microsoft and Alphabet (aka Google) all reported impressive quarterly results on Thursday in the late afternoon. Investors are bidding shares much higher in extended trading.
Both classes of Alphabet shares -- GOOG and GOOGL -- are rising by about 11% pre-market.
Amazon's stock is also up by about 10% and Microsoft shares are climbing by about 10.5%.
Companies including American Airlines, Procter & Gamble, Whirlpool and Royal Caribbean are reporting earnings this morning before trading begins.
European stocks started the day with positive momentum after the head of the European Central Bank, Mario Draghi, said Thursday that the bank was examining new ways to tackle deflation and get the economy moving again. The bank could act as early as its next meeting on Dec. 3.
The ECB could cut interest rates even deeper into negative territory or increase the size and scope of its program of quantitative easing -- printing money to buy government bonds and other assets.
China slashed key interest rates on Friday, the latest in a string of measures aimed at boosting its economy.
The People's Bank of China cut its key lending and deposit rates by 0.25 percentage points. The one-year lending rate is now 4.35% and the deposit rate is 1.5%.
The central bank also said it would require large banks to keep less cash in reserve, a move that should make it easier and cheaper for the banks to lend money.
Stock markets immediately surged after the China announcement.
Oil prices gained 20 cents to $45.58 U.S. a barrel
Gold prices were up $11.28 to $1,177.33 U.S. an ounce.
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