News Column

Stocks may open unchanged

July 18, 2014



Inflation figures out







Canadian stocks looked set to open little changed on the last trading day of the week as investors digested the country's inflation data.

The S&P/TSX composite index fell into the red 22.83 points to close Thursday at 15,203.51

The Canadian dollar picked up 0.12 cents to 93.04 cents U.S. early Friday

Canada's economy will grow a bit more slowly than previously thought over the next two years, a Reuters poll found, but economists expect inflation to stay near the central bank's 2% target.

Royal Dutch Shell has suspended development of a liquefaction unit at Canada's Jumping Pound facility, which was to be used to develop the emerging gas for transport market.

Morgan Stanley, Canaccord Genuity, Barclays and NBF upped their targets on Canadian Pacific Railway's stock

Canaccord Genuity raised the rating on IBI Group to speculative buy from hold

On the economic front, Statistics Canada reported this morning that consumer prices rose 2.4% in the 12 months to June, following a 2.3% increase in May. On a seasonally adjusted monthly basis, the Consumer Price Index increased 0.3% in June, after rising 0.2% in May.

What's more, the agency reported that the wholesale trade perked once again in May, rising 2.2% to $52.6 billion, a second consecutive increase. While higher sales were recorded in four subsectors, representing the bulk of wholesale sales, the motor vehicle and parts subsector accounted for most of the gain. Excluding this subsector, wholesale sales rose 0.7%.

ON BAYSTREET

The TSX Venture Exchange slipped 3.60 points Thursday to 1,005.69.

ON WALLSTREET

It could be a nervous session for markets Friday as geopolitical tensions shake investor sentiment.

Ahead of the opening bell, futures for the Dow Jones Industrials eked up one point to 16,942. Futures for the S&P 500 took on 2.25 points, or 0.1%, to 1,955.75, and futures for the NASDAQ gained 10 points, or 0.3%, to 3,886.

General Electric and Honeywell will report earnings before the opening bell.

Google shares gained 1.7% pre-market after the company reported another quarter of surging sales growth. News that Japan's Softbank has hired away Google's global sales chief Nikesh Arora may pique investor interest.

Drugmaker AbbVie could unveil a deal to buy Shire as early as Friday, according to reports. The $54-billion U.S. acquisition would be the latest by a U.S. firm looking to move its tax base overseas to save money.

The University of Michigan will post its consumer sentiment measurement at 9:55 a.m. ET.

World markets fell further on Friday on fear of escalating tensions in Ukraine after a Malaysia Airlines plane crashed in the east of the country.

The U.S. believes Flight MH17 was brought down by a surface-to-air missile over a region that has seen heavy fighting between pro-Russian separatists and Ukrainian government forces.

Analysts say the tragedy could damage business confidence, particularly in Europe, but may also bring the crisis in Ukraine to a head by increasing the pressure on Moscow to resolve the conflict.

Oil prices gained 12 cents to $103.31 U.S. a barrel

Gold prices dipped $6.80 to $1,310.10 U.S. an ounce.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Baystreet Stock Market Update (Canada)


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