(RTTNews) - Bay Street stocks may open higher Friday amid recovery in energy prices and after recent sell-offs that trimmed over 3% from the main index.
Encouraging jobs data from both sides of the border will also help lift sentiment. While Canada surprised markets by reporting jobs growth of over 5 times than consensus estimates, jobs creations in the U.S. came in much higher than economists’ expectations.
However, lingering worries over the euro zone fiscal situation may weigh on sentiment, capping big gains.
U.S. stock futures point to a marginally higher open.
On Thursday, the S&P/TSX Composite Index lost 32.70 points or 0.28% to 11,842.43, taking its cumulative losses in the past four days to over 3%. The index hit n 19-month high of
The price of crude oil edged up after falling in the past three sessions, eroding over 10%. Crude for June delivery was up $0.70 to $77.81 a barrel.
Gold stocks may be in play today amid firm gold prices and earnings reports from a host of gold mining companies. The price of gold was trading flat around $1,198 an ounce, holding on to its recent gains.
International gold company Eldorado Gold (ELD.TO) reported that its first-quarter net income was $0.10 per share, up from $0.04 per share in the first quarter of 2009. Analysts were expecting the company to report earnings of $0.07 per share this quarter. The company also announced an annual dividend of C$0.05 per common share.
Gold producer Iamgold Corp. (IMG.TO) reported first-quarter net earnings of $0.16 per share, compared to $0.17 per share in the year ago quarter.
Precious and base metal explorer New Gold (NGD.TO) reported first-quarter net income of $17.5 million, compared to net income of $12.1 million in the prior year quarter. On a per share basis, net income was $0.04, down from $0.06 in the same quarter last year. Analysts were expecting the company to post income of $0.04 per share this quarter.
Gold mining company Richmont Mines (RIC.TO) said its first-quarter net earnings grew to C$0.07 per share from C$0.05 per share in the prior year period. The company said it will acquire an additional 30% of the issued and outstanding shares of Louvem Mines Inc. (LOV.V).
Energy company Canadian Natural Resources (CNQ.TO) reported improved first-quarter net earnings of C$1.60 per share, compared to C$0.56 per share in the same quarter last year. The company said it would subdivide its common shares on a two for one basis.
Food products company Premium Brands Holdings (PBH.TO) reported first quarter earnings of C$0.10 per share, compared to C$0.12 per share last year.
Information technology and business processing services provider CGI Group (GIB_A.TO) said it will acquire Stanley Inc. through a cash tender offer at $37.50 per share, representing an enterprise value of around $1.07 billion.
Real estate company MI Developments (MIM_A.TO) reported lower first-quarter funds from operations of$0.55 per share, compared to $0.75 per share last year. The company declared a dividend of $0.15 per share.
Gaming software solutions provider CryptoLogic (CRY.TO) reported wider first quarter loss of $0.25 per share, compared to $0.10 per share in the same quarter a year earlier.
LNG Energy (LNG.V) said it acquired Kunagu Real Estate S.A., which helped it to increase its ownership from a 12% to 20% net interest in a shale gas exploration project in Poland.
In economic news, Statistics Canada said employment increased by 109,000 in April, recording the largest monthly gain in percentage terms since August 2002. The unemployment rate edged down 0.1% in April to 8.1%. Economists were expecting the economy would add about 20,000 jobs and the unemployment rate would remain unchanged at 8.2%.
From the U.S., the Labor Department said non-farm payroll employment increased by 290,000 jobs in April following an upwardly revised increase of 230,000 jobs in March. Economists were expecting a much more moderate increase by about 187,000 jobs compared to the addition of 162,000 jobs originally reported for the previous month. The Department added that the unemployment rose to 9.9% in March from an unrevised 9.7% in March. The increase came as a surprise to economists, who expected the unemployment rate to remain unchanged.
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