Newspaper article The Canadian Press

Traders to Focus on Heavy Slate of Earnings News, U.S. Economic Growth Data

Newspaper article The Canadian Press

Traders to Focus on Heavy Slate of Earnings News, U.S. Economic Growth Data

Article excerpt

Traders to focus on earnings, U.S. GDP data


TORONTO - The Toronto stock market could find some lift from earnings news this week as the second quarter reporting season starts to move into high gear.

Traders will gauge the health of Corporate Canada from companies across the resource, industrial and consumer sectors, including both of Canada's major railways, grocer Loblaw Cos. (TSX:L), telecom Rogers Inc. (TSX:RCI.B) and some of the country's top miners.

The TSX ended last week with a small gain of 0.94 per cent as markets in general got a lift from hopes that central banks will do whatever is necessary to keep a fragile global recovery on the rails. Also, oil prices boosted the resource heavy market as another round of Mideast tensions pushed oil back above US$90 a barrel.

The small advance still left the TSX down 2.77 per cent year to date.

It was a quarter marked by lower commodity prices as oil and metals retreated on worries about slowing economies around the world.

"The commodity prices haven't been all that great in the past quarter and I'm not expecting barn burner results out of anybody (in the resource sector)," said Colin Cieszynski, market analyst at CMC Markets Canada.

"It wouldn't surprise me at all if we saw some small disappointments out of the various resource producers, probably just because commodity prices haven't been all that great."

The first major report of the week comes down Tuesday night from Suncor Energy (TSX:SU). Its results could be affected by a sharp drop in crude during May and June. Oil fell from US$106 to as low as around the $78 mark as worries grew about a slowing global economy. Still, analysts expect Suncor to turn in earnings per share of 77 cents, more than double the 36-cent showing from a year earlier.

Rogers Communications is also out with results Tuesday. Canada's largest cable TV operator is expected to hand in earnings per share of 87 cents, up from 80 cents a year earlier. In June, Rogers announced it was cutting 375 jobs, as the wireless, cable and Internet provider cuts costs in the face of lower profits and tougher competition on all fronts.

Canadian National Railway (TSX:CN), Canada's biggest railroad, is expected to issue earnings per share of $1. …

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