Canada's main stock index pointed to a lower open on Thursday as investors looked beyond Washington's last-minute debt default deal and focused on the effects of the 16-day government shutdown and prospects of a re-run next year.
The S&P/TSX composite index gained 25.75 points to conclude Wednesday at 12,957.21. Futures were down Thursday by 0.1%.
The Canadian dollar boosted 0.28 cents to 97.12 cents U.S. early Thursday
BMO raised the price target on Air Canada to $6 from $5 and the rating outperform. It also raised the price target on Westjet Airlines to $26 from $23 and the rating to market perform as cost trends appear favourable and valuations remained inexpensive.
RBC raised the rating on Enerplus Corp. to outperform and the price target to $22 from $20 on the company's operating momentum, relative valuation and improved capital discipline.
CIBC cut the price target on SNC-Lavalin to $48 from $50 and the rating to outperform after the company reduced net income guidance.
On the economic beat, Statistics Canada reported that foreigners bought only $2.1 billion worth of our investments during August, down from recently past months, and mostly focused on corporate debt instruments.
The agency also said that Canadian investment in foreign securities rose to $5.7 billion, the largest investment since November 2012.
ON BAYSTREET
The TSX Venture Exchange dropped 3.25 points to finish at 925.88.
ON WALLSTREET
Investors gave a lukewarm reception to news that Washington had reached a temporary deal to reopen the federal government and avert a potentially catastrophic default.
Ahead of the opening bell, futures for the Dow Jones Industrials dipped 54 points, or 0.4%, to 15,195. Futures for the S&P 500 fell 2.8 points, or 0.2%, to 1,710.40, and futures for the NASDAQ inched forward 1.5 points to 3,265.50.
IBM shares sank 6% in pre-market trading after the tech giant reported quarterly sales results that fell short of expectations. Shares of eBay fell 5% after the company offered weak guidance.
Shares of Goldman Sachs slipped after firm reported a year-over-year revenue decline. At the same time, Goldman's earnings per share topped forecasts and the company hiked its dividend by a nickel to 55 cents.
Verizon shares jumped after the company reported a double-digit profit increase for the quarter.
Also on Thursday, Google is up in the afternoon
The agreement reached late Wednesday night provides a few months of breathing space but little progress has been made in bridging fundamental differences in Congress. That could mean renewed uncertainty and volatility in early 2014.
It may also sap business and consumer confidence during the year-end holiday season, adding to the $24-billion U.S. hit to the economy caused by the events of the past two weeks.
The dollar was weaker against other major world currencies, sinking as much as 0.7% against the euro and the pound.
Oil prices retreated 61 cents to $101.68 U.S. a barrel
Gold prices recovered $33.70 to $1,316 U.S. an ounce.
