Wobbly Opening Foreseen for TSX

Barrick, CGI in Focus

Futures for Canada's main stock index fell on Thursday on weaker oil prices as investors braced for increased supplies after a compromise deal between leading producers and as U.S. fuel stocks rose.

TSX Composite index stumbled 123.41 points to close Wednesday at 20,147.24

The Canadian dollar moved lower 0.11 cents Thursday to 79.79 cents U.S.

September futures deleted 0.4% Thursday.

Barrick Gold said on Thursday second-quarter gold production fell 5.4% from the previous quarter, dented by planned maintenance shutdowns at Nevada Gold Mine in the United States and Pueblo Viejo in the Dominican Republic.

TD Securities initiates coverage on Anaergia with a speculative buy rating, and a price target of $40.00.

CIBC raised the rating on CGI to outperform.

On the economic slate, the Canadian Real Estate Association was standing by Thursday morning with home sales for June.

ON BAYSTREET

The TSX Venture Exchange stepped backward 3.8 points Wednesday to 937.82.

ON WALLSTREET

Dow Jones Industrial Average futures fell as sliding bond yields raised concern about the pace of global economic growth and took focus away from continued better-than-expected earnings results Thursday morning.

Futures for the 30-stock index let go of 164 points, or 0.5%, to 34,651.

Futures for the S&P 500 dipped 15 points, or 0.3%, to 4,352.75.

Futures for the NASDAQ Composite Index gave up 3.75 points to 14,888.

The move lower in yields dampened enthusiasm for the cyclical trade in the pre-market with shares of Caterpillar, General Electric and Boeing lower. Cyclical stocks are those closely linked to a recovering economy.

Bank shares, including Wells Fargo and Bank of America, were lower in pre-market, despite posting better-than-expected results earlier in the week, as the falling yields pinch their profitability.

Shares of Morgan Stanley dipped in early morning trading even after the company’s second-quarter earnings report Thursday morning topped analysts’ expectations with strong equities trading and investment banking results. Morgan Stanley shares were up 35% this year into the results and the stock may be reacting more to the outlook for yields than its actual results.

Delta shares bucked the trend, however, gaining in pre-market trading after an upgrade from Raymond James.

Netflix shares also rose pre-market trading, gaining 2% after it hired a veteran video-game executive as it pushes deeper into gaming.

Other large tech shares were higher in pre-market trading, continuing a trend this week. Apple and Alphabet gained in pre-market trading.
Investors were also awaiting key developments coming later in the session including weekly jobless claims data at 8:30 a.m. ET and a Congressional testimony from Federal Reserve Chair Jerome Powell set for 9:30 a.m. ET.

Overseas, in Japan, the Nikkei 225 faded 1.2% Thursday, while in Hong Kong, the Hang Seng index rose 0.8%.

Oil prices fell $1.34 to $71.82 U.S. a barrel.

Gold prices gained 80 cents to $1,825.80 U.S. a pound.