Markets in Toronto looked set to open lower on Wednesday, as investors await a flurry of U.S. economic data and the U.S. Federal Reserve's October minutes, which could provide further clues on the monetary stimulus program.
The S&P/TSX composite index dipped 15.46 points to end Tuesday at 13,442.60, with Wednesday morning futures down 0.1%.
The Canadian dollar restored 0.08 cents to 95.60 cents U.S. early Wednesday
Canaccord Genuity raised the target price on Alimentation Couche-Tard to $79 from $69 on valuation, saying the shares remain attractively valued at current levels
As well, Canaccord Genuity cut the rating on Coastal Energy to sell from buy, saying CEPSA's proposed acquisition of the company will close at $19 per share as it has a limited chance of being presented with a higher offer
CIBC cut the rating on Fortress Paper to sector underperform from sector outperformer, believes operational improvements will be seen at Thurso in coming months, but the Chinese duty imposition drains the equity upside in the company
On the economic calendar, Statistics Canada says wholesale sales hiked 0.2% to $49.8 billion in September, in contrast to a 0.3% hike projected by economists.
It was the third straight monthly improvement and sales increased in four of the seven subsectors, accounting for 45% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange moved forward 1.68 points Tuesday to 923.47
ON WALLSTREET
Economic data and the U.S. Federal Reserve will take centre stage Wednesday for markets looking for reasons to resume their upward march.
Ahead of the opening bell, futures for the Dow Jones Industrials faded five points to 15,929. Futures for the S&P 500 gained 0.3 points to 1,785.50, and futures for the NASDAQ dipped 3.5 points, or 0.1%, to 3,372.
The market is waiting for the release at 2 p.m. ET of the minutes from the Fed's most recent policy meeting.
Investors are looking for further evidence that the central bank will continue its stimulus program into 2014, extending the huge bond-buying spree that has supported the U.S. economic recovery and helped boost stock markets to record levels.
On the corporate side, retailer J.C. Penney is scheduled to report quarterly results before the opening bell, while Green Mountain Coffee Roasters is up in the afternoon.
Lowe's reported a double-digit gain in quarterly profit, which Chief Executive Officer Robert Niblock attributed to the strengthening market for home improvement.
Shares in JPMorgan Chase were edging slightly lower in pre-market trading after the investment bank announced a $13-billion U.S. settlement with the U.S. Department of Justice over mortgage-backed securities sold ahead of the financial crisis.
Yahoo shares rose in premarket trading following the news on Tuesday that the company is boosting its stock buyback by another $5 billion U.S.
On Tuesday evening, chairman Ben Bernanke made a speech that indicated Fed support was likely to continue into 2014.
Markets were also waiting for the monthly Consumer Price Index from the U.S. Labor Department, which is the government's key measure of inflation.
Inflation for October is expected to be flat, according to a consensus of economist forecasts, with a slight uptick in core CPI, which excludes volatile energy and food prices.
Also, the Census Bureau will publish its monthly report on retail sales at the same time.
At 10 a.m. ET, the National Association of Realtors will release its monthly report on existing home sales.
European markets were edging lower in morning trading and Asian markets ended with mixed results. Chinese indexes closed with gains though other key markets moved down.
Oil prices retreated four cents to $93.30 U.S. a barrel
Gold prices shed $10.60 to $1,262.90 U.S. an ounce.
