News Column

Good vibes from Fed could drive Toronto higher

January 28, 2014

BMO, Quantum in focus Equity markets in Toronto pointed to a higher open on Tuesday ahead of a U.S. central bank policy meeting to decide further stimulus cuts. The S&P/TSX composite index fell 135.47 points, or 1%, to end Monday at 13,582.29 The Canadian dollar dipped 0.17 cents to 89.79 cents U.S. early Tuesday Bank of Montreal has reached a deal to buy UK -based F&C Asset Management Plc for 708 million pounds just a day after first announcing an offer, saying the move would help expand its wealth management arm. First Quantum Minerals said its Cobre Panama project in Central America should produce 20% more copper than previously planned, but production will start later than expected and development costs will be higher, the company said. TransCanada Corporation said on Monday there were "no issues" at present with its 590,000-barrel-per-day Keystone XL crude oil pipeline system. ON BAYSTREET The TSX Venture Exchange plummeted 15.56 points Monday to 951.25 ON WALLSTREET Quarterly results and volatility in emerging markets could set the tone for trading in U.S. markets Tuesday. Ahead of the opening bell, futures for the Dow Jones Industrials ballooned 66 points, or 0.4%, to 15,853. Futures for the S&P 500 moved higher by 7.1 points, or 0.4%, to 1,782.80, but futures for the NASDAQ faded 15.5 points, or 0.4% to 3,487.50. Tech shares could come under pressure from Apple which reported weaker-than-expected fourth-quarter iPhone sales late Monday. But the Dow was pointing to a positive start, helped by solid earnings from Pfizer, which reported better-than-expected earnings, though sales fell short of estimates. Ford shares rose after the automaker reported better-than-expected quarterly earnings that matched last year's results. Comcast reported a jump in quarterly sales and earnings. DuPont reported a jump in quarterly sales and operating earnings, propelled by insecticide sales in Latin America as well as earlier seed shipments. The company also announced a $5-billion U.S. share buyback. After the close, results are due from Yahoo, AT&T and Electronic Arts. The turmoil has been sparked, in part, by the U.S. Federal Reserve's plans to rein in the flow of cheap money. The markets expect the Fed to announce a further cut to its bond-buying program Wednesday, which could prompt a withdrawal of cash from vulnerable emerging markets. In economic news, the U.S. Census Bureau is set to release its monthly report on durable goods orders this morning. The Case-Shiller 20-city home price index is also due, likewise, the Conference Board's Consumer Confidence Index. U.S. President Obama will give his annual State of the Union message at 9 p.m. ET . European markets edged higher in early trading while Asian markets ended mixed. Oil prices gained 53 cents to $96.25 U.S. a barrel Gold prices faded $6.50 to $1,256.90 U.S. an ounce.

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Source: Baystreet Stock Market Update (Canada)

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