Toronto stock market set to open higher amid major Canadian earning reports

TORONTO – The Toronto stock market is poised for a positive open Thursday as a slew of Canadian heavyweights reported their latest quarterly earnings.

The Canadian dollar was up 0.11 of a cent to 96.05 cents US.

In the U.S., the Dow Jones industrial futures climbed 63 points to 15,505, the S&P futures jumped 6.20 points to 1,694.40, while Nasdaq futures surged 13.50 to 3,129.50.

Before markets opened, a number of companies reported mainly strong earnings.

Insurer Manulife Financial Corp. (TSX:MFC) reported $259 million of net income attributable to shareholders and $609 million of core earnings in the second quarter.

The core earnings amounted to 31 cents per share, up from 30 cents per share a year earlier when the insurance and wealth management company had $599 million of core earnings. Manulife also had a $281 million net loss in the second quarter of 2012 after including certain items it considers non-core.

Canadian Natural Resources Limited (TSX:CNQ) says adjusted net earnings in the second quarter totalled $462 million, or 42 cents per diluted share. That compares to $606 million, or 82 cents per share, the same period of 2012. Production during the quarter averaged 623,315 barrels of oil equivalent, which was within the company’s previously announced guidance.

BCE Inc. (TSX:BCE) is reporting $571 million of net income attributable to common shareholders, or 74 cents per common share. That was down from $732 million or 94 cents per common share a year earlier.

On an adjusted basis, the media and telecommunications giant earned $594 million or 77 cents per common share — down from $747 million or 97 cents per share in the second quarter of 2012, when BCE’s profit was boosted by non-recurring items.

Meanwhile, media giant Quebecor Inc. (TSX:QBR.B) reported a $45.1-million net loss attributable to shareholders and $52.9 million of adjusted income from continuing operations for its second quarter.

The adjusted earnings equal 85 cents per basic share, up from 72 cents per share or $46.1 million in the second quarter of 2012.

Quebecor is the majority owner of Quebecor Media, which owns a variety of telecommunication, broadcasting and publishing businesses. The earnings came before a federal regulator was to rule later Thursday on whether Quebecor’s Sun TV can be carried on basic cable.

In major corporate news, CAE Inc. (TSX:CAE) says it has been chosen to train U.S. Air Force crews to operate Predator and Reaper remotely piloted aircraft, commonly called drones.

The Montreal-based company says the initial one-year services contract is for US$20 million and could be worth up to US$100 million if extended to the maximum.

The contract — originally announced by the U.S. Defence Department on July 30 — was one of several disclosed by the company ahead of its annual meeting of shareholders and a conference call with analysts.

CAE also announced a $210-million contract to supply eight flight simulator, related equipment and services to an unidentified customer. It also said it has been awarded a contract worth an undisclosed amount to provide three mission training simulators for the Royal Australian Air Force.

On the commodities front, December bullion gained $4.80 to US$1,90.10 an ounce.

The September crude contract on the New York Mercantile Exchange moved down 12 cents to US$104.25 a barrel. Copper saw an uptick of nine cents to $3.26.

The North American markets may also see some lift by gains in the world markets overnight.

Solid Chinese trade data underpinned most global stock markets Thursday, though Japanese shares underperformed for the second day running as the yen rallied again.

China’s exports and imports both increased in July, beating expectations and easing concerns over the slowdown in the world’s second-largest economy. Exports were up 5.1 per cent from a year earlier, while imports jumped 10.9 per cent.

Japan’s Nikkei 225 index struggled again, falling 1.6 per cent to 13,605.56 after the Bank of Japan ended a two-day policy meeting without boosting its monetary stimulus. That shored up the yen, which has fallen this year because of the stimulus program. The dollar was down 0.3 per cent at 96.31 yen.

Elsewhere in Asia, South Korea’s Kospi advanced 0.3 per cent to 1,883.97 while mainland China’s Shanghai Composite Index slipped 0.1 per cent to 2,044.90.

In Europe, the FTSE 100 index of leading British shares was up 0.4 per cent at 6,534 while Germany’s DAX rose the same rate to 8,296. The CAC-40 in France was 0.5 per cent higher at 4,057.