Toronto's main stock index looked set to open lower on Friday, as Canada's biggest trading partner failed to strike a deal to avoid automatic spending cuts.
The S&P/TSX composite index gained 88.51 points, to close Thursday – and February -- at 12,820.90. Futures Friday morning stepped back 0.6%.
The Canadian dollar faded another 0.07 cents to 96.96 cents U.S. Friday
Auto parts maker Magna International Inc reported a 12.5% rise in profit on strong performance in its North American business, and raised its full-year sales forecast.
Ithaca Energy Inc said it would acquire Valiant Petroleum Plc for 203 million pounds in cash and shares.
National Bank of Canada, the country's sixth-largest lender, on Thursday said its first-quarter profit rose 3.7% due largely to improved wealth management income.
Royal Bank of Canada is seeking ways to re-enter U.S. consumer banking just two years after it took a $1.6-billion loss from the sale of its money-losing U.S. retail bank network.
On the economic front, Statistics Canada reported this morning that economic growth in this country provided a good-news-bad-news story. The agency said real gross domestic product edged up 0.2% in the fourth quarter of 2012, similar to the gain in the third quarter. On a monthly basis, however, real gross domestic product by industry declined 0.2% in December.
ON BAYSTREET
The TSX Venture Exchange gained 2.24 points Thursday to 1,133.36
ON WALLSTREET
Wall Street investors were likely to lose momentum Friday, dragged by market uncertainty overseas and concerned about events -- or lack of events -- in Washington.
Futures for the Dow Industrials scaled back 68 points, or 0.5%, to 13,970. Futures for the S&P 500 dropped 8.6 points, or 0.6%, to 1,504.70, and futures for the NASDAQ fell 13 points, or 0.5%, to 2,725.
In corporate news, Best Buy is scheduled to announce quarterly results before the opening bell.
Groupon shares rose 4% in premarket trading Friday after the daily deals site announced that embattled CEO Andrew Mason would be replaced.
Gap shares rose after hours following fourth-quarter earnings from the apparel maker that beat expectations.
Shares of Salesforce.com also rose following strong earnings announced after the bell.
Assuming no last-minute deal, $85 billion U.S. in automatic spending cuts are due to begin Friday, although it may be weeks or months before the pain is felt. Still, markets are likely to remain in a cautious mood as major indexes hover just below record highs.
This morning, the U.S. Commerce Department will release data on personal income and spending, while the Census Bureau publishes data on construction spending.
Personal income is expected to have dropped 2.4% in January, according to a Briefing.com consensus of economist forecasts, while personal spending is expected to have notched up 0.2%. Construction spending is expected to have increased 0.5% in January.
Also, the Institute for Supply Management will release its monthly manufacturing report, and the University of Michigan and Thomson Reuters will publish the final edition of their consumer sentiment index for February.
The ISM Index is expected to have slipped to 52.4 in March, from the prior month's index of 53.1, according to Briefing.com consensus. Anything above 50 signifies expansion.
European markets fell in midday trading, while Asian markets ended mixed.
Oil prices jettisoned $1.28 to $90.77 U.S. a barrel
Gold prices faded 70 cents an ounce to $1,577.40 U.S.
