The Toronto stock market was set to recover slightly from a sharp, triple-digit slide with investors responding Wednesday to a wave of Canadian earnings reports and indications China's manufacturing slump may have bottomed out.
The S&P/TSX composite fell 177.70 points, or 1.4%, Tuesday at 12,225.84
The Canadian dollar nosed ahead 0.22 cents Wednesday morning to 100.99 cents U.S.
Among stocks to watch this morning, Rogers Communications Inc. posted net income of $495 million or 96 cents per share, seven cents better than estimates and up from $489 million or 90 cents per share a year ago. Its revenue increased to $3.17 billion, up about 1% from the same time last year and largely in line with analyst estimates.
Canadian Pacific Railway Ltd. says its third-quarter net income was $224 million, an increase of $37 million, or 20 per cent and diluted earnings per share of $1.30, up 18% compared with a year earlier. The profit beat analyst estimates by a penny a share and revenue was slightly above the consensus estimate.
Encana Corp. had a $1.24-billion U.S. net loss in the third quarter, primarily due to the impact of lower natural gas prices over the past year, but says it’s still on track to meet its financial guidance for the full year. Most of the quarterly loss was attributed to a non-cash impairment charge that the Calgary-based company says doesn’t affect its operating earnings or cash flow, although they were down sharply from last year.
ON BAYSTREET
The TSX Venture Exchange went down 18.91 points Tuesday to 1,289.50
ON WALLSTREET
Stock futures were little changed Wednesday, as investors took in mixed economic data from China and Europe ahead of more corporate results.
Futures for the Dow Jones Industrials took on 36 points, or 0.3%, to 13,077, about 30 minutes before the opening bell. Futures for the S&P 500 gained five points, or 0.4%, to 1,411.80, and for the Nasdaq, futures added 11 points, or 0.4%, to 2,671.50
In the United States, corporate earnings remain in full force Wednesday. Before the bell, Dow component Boeing reported earnings that beat analysts' expectations and raised its outlook for full-year profits. AT&T, another blue chip, also reported earnings that topped market expectations and said cash-flow this year will be better than previously expected. Social game maker Zynga will report after the bell.
Asian markets ended mixed after a report showed China’s manufacturing sector hit a three-month high in October.
HSBC's initial purchasing manager's index for Chinese manufacturing jumped to 49.1 in October from 47.9 the previous month, the bank said Wednesday. Any reading below 50 indicates that factory growth is shrinking rather than picking up speed.
The Shanghai Composite edged up nearly 0.1% and the Hang Seng in Hong Kong gained 0.3%, while Japan's Nikkei 225 slid 0.6%.
Meanwhile, news out of Europe was less encouraging.
A survey of purchasing managers in the euro area underscored the grim economic situation there. The Markit composite PMI fell to a 40-month low of 45.8 in October, signaling continued decline in the manufacturing and services sectors. Additionally, a gauge of business sentiment in Germany, the region's economic engine, fell to a two-and-a-half year low.
Despite the unfortunate data, European stocks held steady Wednesday morning. Britain's FTSE 100 and the DAX in Germany were little changed, while France's CAC 40 edged up 0.3%.
Oil for December delivery gained 15 cents to $86.82 U.S. a barrel.
Gold futures for December delivery fell $16.90 to $1,709.45 U.S. an ounce.
