Stock markets in Toronto looked set to open higher on Wednesday as investors await clues on the life of the U.S. central bank's $85-billion-a-month bond-buying program from Federal Reserve Chairman Ben Bernanke when he testifies to a congressional panel today.
The S&P/TSX Composite Index slid 11.46 points to end trading Tuesday at 12,516.89, with futures 0.06%.
The Canadian dollar dropped 0.32 cents to 96.13 cents U.S. early Wednesday
Canaccord Genuity cut the target price on Agrium Inc. to $115 from $118 on valuation.
Canaccord also cut the rating on Midway Gold Corp to sell from speculative buy due to the impact of the precious metal forecast revision.
National Bank Financial raised the target on Quebecor Inc. to $53 from $52, assuming that nearly half of the company's savings will be mitigated by evolving top-line pressures as well as investments in digital initiatives
On the economic slate, Statistics Canada reported that foreign investment in Canadian securities slowed to $6.7 billion in May on lower investment for all types of securities, mainly bonds. Meantime, Canadian investors sold $1.6 billion in funds from international financial markets in May, mostly U.S. securities.
Figures released this morning by the Canadian Real Estate Association revealed that the number of home sales rose 3.3% in June. This marks the fourth consecutive monthly increase, with activity now running 11% above where it stood in February.
ON BAYSTREET
The TSX Venture Exchange improved 14.11 points Tuesday to 910.84
ON WALLSTREET
Investors hit the pause button early Wednesday ahead of further comments from U.S. Federal Reserve chairman Ben Bernanke.
Futures for the Dow Industrials were flat at 15,391. Futures for the S&P 500 dipped 0.30 points to 1,670.90, and futures for the NASDAQ gained 3.75 points, or 0.1%, to 3,074.50
In the corporate world, Bank of America released its second-quarter results before the opening bell, reporting a 63% surge in quarterly profit to more than $4 billion U.S.
Yahoo shares rose more after the company reported a jump in profit though quarterly sales fell slightly short of both Wall Street's expectations and its own results from a year earlier.
CSX shares rose nearly 2% in pre-market trading after the rail company reported quarterly earnings that beat expectations.
Results are due Wednesday afternoon from firms including IBM, Intel, eBay and American Express
Bernanke is back in the spotlight Wednesday as he prepares to deliver his semi-annual testimony on monetary policy before the House Financial Services Committee at 10 a.m. ET.
Many are expecting Bernanke to repeat recent remarks, gently explaining that the central bank might begin pulling back on its massive bond-buying program later this year if the U.S. economy continues to improve.
The Fed will also release the latest edition of its Beige Book, a report on regional economies, at 2 p.m. ET, while the Census Bureau will publish data on housing starts and building permits this morning.
European markets gained slightly morning trading, while Asian markets closed with mixed results. The Shanghai Composite index dipped fell by 1%, while Hong Kong's Hang Seng index and Tokyo's Nikkei 225 each moved slightly higher.
Oil prices added five cents to $106.05 U.S. a barrel
Gold prices slid $4.50 to $1,285.90 U.S. an ounce.
