TSX May Open Lower On Falling CommoditiesCanadian stocks may struggle to sustain recent gains Friday morning amid falling commodities prices and mixed flow of corporate earnings from south of the border.
Citigroup Inc. reported lower second-quarter net income of $0.09 per share, compared to $0.49 per share in the year ago quarter. Analysts were expecting the company to report earnings of $0.05 per share for the quarter. Bank of America Corp. said its second-quarter net income dipped to $0.27 per share from $0.33 per share in the year ago quarter. Analysts were expecting the company to report earnings of $0.22 per share for the quarter.
Meanwhile, General Electric Co. reported improved second-quarter net earnings of $0.28 per share, compared to $0.25 per share in the year ago quarter, against analysts' expectations for earnings of $0.27 per share.
Elsewhere, most Asian markets ended lower after yesterday's reports from the U.S. revealed slower pace of manufacturing growth in the Philadelphia and New York regions.
European stocks were moving higher amid a firm euro. Shares of BP plc. gained after it said it stopped the oil leak with it's new capping device.
On Thursday, the S&P/TSX Composite Index added 121.62 points or 1.05% to 11,741.77 on late buying.
The price of crude oil was down $0.26 to $76.36 a barrel amid mixed earnings reports from major U.S. companies.
The price of gold lost $13.60 to $1,194.70 an ounce amid a firm euro.
In corporate news from Canada, Thompson Creek Metals said it will buy Terrane Metals for C$650 million, paying C$0.90 in cash and 0.052 Thompson Creek common shares for each Terrane share.
Mineral explorer PLATINUM Group Metals turned to profit in third-quarter, reporting net income of C$0.46 per share, compared with a net loss of C$0.08 per share in the prior year quarter.
TSX May Open Lower On Falling Commodities
Molybdenum mining company Uranium One said it would acquire a 50% interest in the Akbastau uranium mine and a 49.67% interest in the Zarechnoye uranium mine from JSC Atomredmetzoloto.
Bio-pharmaceutical company Tekmira Pharmaceuticals said it received up to $140 million contact from U.S. Department of Defense.
In economic news, Statistics Canada said the composite leading index rose by 1.0% in June after gaining 1.1% in the previous two months. New orders for durable goods rose for a fifth straight month, adding 2.3%.
In another report, the agency said investments in non-residential building construction advanced 1.2% to C$10.1 billion in the second quarter from the previous quarter.From the U.S., the Labor Department said consumer prices edged down by 0.1% in June following a 0.2% drop in May and a 0.1% decrease in April. The modest decrease came in line with economists' expectations. Meanwhile, core prices, which exclude food and energy prices, increased 0.2% in June after edging up by 0.1% in May. Economists were expecting core prices to rise by 0.1%.
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