Futures Slump Ahead of Fed Policy Meeting

Bombardier, Canadian Tire in Focus

Canada's main stock index futures fell on Thursday, as investors await rate decision of U.S. Federal Reserve at its policy meeting.

The S&P/TSX Composite Index gained 76.72 points to adjourn Wednesday at 15,369.43

The Canadian dollar inched up 0.07 cents at 76.30 U.S. early Thursday

December futures were down 0.1% Thursday.

Bombardier said on Thursday it would sell two of its units for $900 million and cut about 5,000 jobs, as the Canadian plane and train maker reins in costs and focuses on its core transportation and business jet units.

Canadian Tire reported a 16.5% rise in quarterly profit on Thursday, helped by higher sales at its retail segment and the inclusion of newly acquired Helly Hansen's operations to its earnings.

Telus’ third-quarter profit rose 10%, as it signed up more subscribers to its wireless services.

RBC raised the price target on CGI to $95.00 from $92.00

RBC cut the price target on CCL Industries to $62.00 from $70.00

CIBC cut the target price on Loblaw Companies to $69.00 from $82.00

CIBC cut the target price on NFI Group to $61.00 from $62.00

RBC cut the target price on Spin Master to $64.00 from $66.00

The Fed is not expected to raise rates at its two-day session that ends on Thursday, a meeting that follows a renewal of volatility in stock prices, tightening credit markets, and a spreading expectation that the U.S. economy will slow next year.

In the economic docket, Canada Mortgage and Housing Corporation announced that the trend in housing starts was 206,171 units in October, compared to 207,809 units the month before.

This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

Statistics Canada declared that new house prices were unchanged nationally for a second consecutive month, despite increases in some pockets across the country.

ON BAYSTREET

The TSX Venture Exchange gained 5.83 points to end Wednesday at 672

ON WALLSTREET

U.S. stock futures pointed to a negative open on Thursday as markets take a breather from the rally following the U.S.-midterm results and turn their attention to the latest monetary policy decision by the Federal Reserve.

Futures for the Dow Jones Industrials slid 51 points, or 0.2%, to 26,131

S&P futures settled 9.5 points, or 0.3%, to 2,807, while the NASDAQ Composite dipped 37.25 points, or 0.5%, to 7,181.25.

D.R. Horton, Houghton Mifflin Harcourt and Unisys are among the companies announcing earnings Thursday.

The Fed is due to announce its latest monetary policy decision on Thursday. Market expectations suggest no change in policy, but investors will be looking for clues on whether there will be further tightening next month.

On the data front, there will be jobless claims out this morning– a key indicator also to forecast the future rate hiking path.

Overseas, in Japan, the Nikkei 225 galloped 1.8% Thursday, while in Hong Kong, the Hang Seng index gained a more modest 0.8%.

Oil prices acquired seven cents to $61.74 U.S. a barrel.

Gold prices lost $2.20 to $1,226.50 U.S. an ounce.