Toronto's main stock index looked set to open lower on Tuesday, tracking Wall Street, as investors remained cautious with hours to go before the start of the U.S. corporate earnings season, which could influence the market's near-term direction.
The S&P/TSX composite index fell 41.26 points to close Monday at 12,499.55, with futures off only slightly.
The Canadian dollar fell 0.06 cents to 101.38 cents U.S. Tuesday morning
Barrick Gold Corp has ended talks to sell a stake in majority-owned African Barrick Gold to a Chinese buyer, dashing hopes of a potential $3-billion deal for the underperforming unit.
Rival Goldcorp Inc. said it expects gold production to rise by about 10% to between 2.55 million and 2.80 million ounces in 2013. The company also raised its annual dividend by 11% to 60 Canadian cents per share.
Nautilus Minerals Inc. which hopes to develop the world's first underwater copper-gold mine off Papua New Guinea, said it has had no contact with a little-known investor who announced a hostile $238-million takeover bid for it but would consider a formal offer. Michael Bailey plans to offer 97 Canadian cents per share for Nautilus, according to a statement released by boutique financial advisory firm Gannibal Securities on Monday.
ON BAYSTREET
The TSX Venture Exchange slid 4.33 points to 1,223.89
ON WALLSTREET
U.S. stock futures pointed to a relatively flat open as investors shift their attention to outlook for corporate results.
Futures for the Dow Industrials faded 13 points, or 0.1%, to 13,294. Futures for the S&P 500 dropped 2.9 points, or 0.2%, to 1,452.70, and futures for the tech-rich Nasdaq notched higher by 1.75 points, or 0.1%, to 2,719.50
Ahead of the opening bell, agriculture firm Monsanto reported earnings that blew past estimates and raised its guidance for the year.
Aluminum maker Alcoa will be the first Dow component to report results for the fourth quarter after Tuesday's close.
Overall, fourth-quarter earnings for S&P 500 companies are expected to rise 3.3%, compared with a year earlier, according to S&P Capital IQ.
On the economic front, investors will get look at metro area unemployment in November shortly after the open, following last week's national employment report for December. The Federal Reserve is set to release data on consumer credit for November at 3 p.m. ET.
In other corporate news, shares of Yum Brands sank nearly 5% in premarket trading Monday after the restaurant operator said its fourth-quarter sales in China would be weaker than expected due to a controversy over food safety standards.
Shares of Sears Holdings Corp rose more than 2% after the retailer announced that Chief Executive Louis D'Ambrosio is stepping down from the top job for family health reasons. Hedge fund manager and Sears chairman Edward Lampert, who's been trying to orchestrate a turnaround for the trouble retailer, will become the new CEO next month.
European markets were higher in morning trading, despite a record-high unemployment report out Tuesday.
Asian markets ended lower. The Hang Seng and the Nikkei lost 0.9%, while the Shanghai Composite declined 0.4%
Oil prices gained 26 cents to $93.45 cents U.S. a barrel
Gold prices added $6.50 an ounce to $1,652.70 U.S.
