The Toronto stock market was poised to open lower Wednesday after more worrisome economic data out of the U.S. put downward pressure on oil prices.
Orders to U.S. factories for big-ticket manufactured goods dropped one per cent in June, the second straight monthly decline and the largest drop since August 2009, according to the Commerce Department. This disappointed economists, who were looking for a gain of 0.7 per cent.
The decline hit most major industries, including machinery, primary metals and electronics. Motor vehicles, electrical equipment and appliances were among the few bright spots.
This is yet another sign that the economic recovery south of the border is slowing, which could hurt demand for everything from oil to base metals to manufactured goods.
Canadian investors will balance this data with a mixed batch of earnings from key companies like Teck Resources Inc. (TSX:TCK.B), Husky Energy (TSX:HSE), Enbridge Inc. (TSX:ENB.) and Canadian Pacific Railway Ltd. (TSX:CP).
The September crude contract on the New York Mercantile Exchange lost 45 cents to US$77.05 a barrel, while gold rose $2.70 to US$1,160.70 an ounce following a big sell-off Tuesday.
The Canadian dollar climbed 0.45 cent to 96.96 cents US.
Futures on Wall Street fell following the let-down in durable goods data, which followed another drop in consumer confidence on Tuesday.
Dow Jones industrial average futures were down 0.2 per cent. S&P 500 index futures were down 0.2 per cent, while Nasdaq 100 index futures also dropped 0.2 per cent.
The U.S. Federal Reserve is set to release its beige book report, which provides a regional snapshot of the economy, Wednesday afternoon.
Investors have been trying to balance strong earnings and corporate outlooks with economic data that has largely shown the recovery is slowing and growth will remain weak.
Overseas, Britain’s FTSE 100 fell 0.4 per cent, Germany’s DAX index dropped 0.5 per cent, and France’s CAC-40 rose 0.3 per cent. Japan’s Nikkei stock average jumped 2.7 per cent.
