TORONTO - Resource stocks could provide some early lift for the Toronto stock market Tuesday amid rising oil and metal prices while investors looked to American lawmakers to arrive at an agreement to raise the country's debt limit.
Nervousness over a looming Aug. 2 deadline to raise the limit or risk a default punished the American dollar, helping to send the Canadian currency up 0.51 to 106.24 cents US, its highest level since early November, 2007.
U.S. futures signalled a slightly higher open on New York markets with the Dow Jones industrial futures ahead 19 points to 12,569, the Nasdaq futures gained 3.5 points to 2,427 and the S&P 500 futures were up three points to 1,336.5.
Both president Barrack Obama and House speaker John Boehner made televised pitches Monday night for their point of view.
Obama said a compromise was needed to avoid a "reckless and irresponsible" outcome. Boehner appeared to dig in his heels, saying Obama would not get what he seeks.
The United States has a week to reach a deal to increase its $14.3 trillion debt limit or face not being able to pay its bills. That has led to fears the world's largest economy could default on its financial obligations and send shockwaves throughout world markets.
The weak U.S. dollar pushed oil prices higher with the September contract on the New York Mercantile Exchange up 46 cents to US$99.66. A weaker greenback usually helps raise oil prices, which are denominated in dollars, as it makes oil less expensive for holders of other currencies.
Copper prices also headed higher with the September contract ahead six cents to US$4.47 a pound.
Gold prices edged slightly away from Monday's latest record close, down 80 cents to US$1,611.40 an ounce.
There was plenty of earnings news for investors to consider.
Rogers Communications Inc. (TSX:RCI.B) said second-quarter profits slipped nine per cent to $410 million or 75 cents a share. But the results still came in above analyst expectations on an adjusted basis by four cents. Revenue increased three per cent to $3.12 billion, which was also above expectations.
Oilsands operator Cenovus Energy Inc. (TSX:CVE) reported that its quarterly net profits soared to $655 million or 85 cents a share from $183 million or 24 cents a year earlier. The results more than doubled analyst expectations of earnings per share. Cash flow jumped to $939 million from $537 million.
Information technology company CGI Group Inc. (TSX:GIB.A) said Tuesday its third-quarter net earnings rose 37.9 per cent to $118.4 million from $85.9 million a year ago. Revenue increased 15.1 per cent to $1.04 billion. Diluted earnings per share were rose to 43 cents, surpassing analyst expectations, compared with 30 cents a year earlier.
In the U.S., Ford Motor Co. said its second-quarter profit dropped eight per cent from a year ago to US$2.4 billion or 59 cents a share as higher sales were offset by the cost of developing new products and expanding sales in Asia. Its shares were up two per cent in pre-market trading in New York.
Package delivery company UPS earned US$1.06 billion or $1.07 per share in the latest quarter, compared with year-ago earnings of $845 million, or 84 cents per share. Revenue rose 8.1 per cent to US$13.19 billion. Analysts expected a profit of $1.12 per share on $13.26 billion in sales and its shares dipped eight cents to US$73.97 in pre-market trading.
Earlier in Asia, Japan's Nikkei 225 stock average closed 0.5 per cent higher. Hong Kong's Hang Seng Index gained 1.3 per cent and South Korea's Kospi added 0.9 per cent. China's Shanghai Composite Index advanced 0.5 per cent.
London's FTSE 100 index gained 0.12 per cent, Frankfurt's DAX added 0.01 per cent while the Paris CAC 40 fell 0.53 per cent.
