TORONTO _ The Toronto stock market looked set to open lower Thursday amid major deal making in the financial sector, a slew of earnings news and positive trade numbers from China.
The Canadian dollar gained 0.21 of a cent to 92 cents US.
U.S. futures were positive as traders await a second day of congressional testimony from Federal Reserve chair Janet Yellen.
The Dow Jones industrial futures rose 22 points to 16,490, the Nasdaq futures dipped 0.2 of a point to 3,540.3 and the S&P 500 futures were up 1.2 points to 1,875.4.
On Wednesday, Yellen told lawmakers that the U.S. job market is ``far from satisfactory.'' She said the Fed will begin increasing interest rates only when there is enough progress in restoring full employment and when inflation is back up to its target of two per cent.
North American markets advanced Wednesday as Yellen's comments appeared to ease concerns that the Fed might move too quickly to raise interest rates.
Investors were also encouraged Thursday by China's April trade data that showed an improvement in exports. Exports rose 0.9 per cent from the previous year, compared with a 6.6 per cent decline in March. Imports also grew after a contraction in March but at a subdued level.
Tensions arising from the Ukraine crisis eased a bit after Russian President Vladimir Putin softened his tone. Putin endorsed plans for fresh elections in Ukraine following the ouster earlier this year of its pro-Russian leader and called on pro-Russian militants in eastern Ukraine to delay referendums on autonomy.
Scotiabank (TSX:BNS, Stock Forum) has signed a deal to buy a 20 per cent stake in Canadian Tire's financial services business (TSX:CTC.A, Stock Forum) for $500 million in cash as part of a strategic partnership between the companies.
At the same time, the retailer posted net income attributable to shareholders of $70.6 million, or 88 cents per share, down from $73 million, or 90 cents a share a year ago, which was five cents below analysts' forecasts. Revenue met expectations, rising 3.8 per cent to $2.57 billion.
Valeant Pharmaceuticals International (TSX:VRX, Stock Forum) posted a first-quarter net loss of $23 million or seven cents a share, compared with a loss of $27.5 million, or nine cents per share, in the same quarter of 2013. On a cash earnings per share basis, adjusted income was $600 million or $1.76 per diluted share, an increase of 35 per cent over the prior year and four cents ahead of estimates. Revenues jumped 77 per cent to $1.9 billion, up from $1.06 billion year-over-year.
Quebecor Inc. (TSX:QBR.B, Stock Forum) says quarterly net income attributable to shareholders was $40.7 million, or 33 cents per basic share, compared to $35.6 million and 29 cents per share in the same period last year. The Montreal-based media company says adjusted income from continuing operations was $49.3 million, or 40 cents per share, up from $36 million or 29 cents a share in the same period of 2013. Revenue during the quarter was up just over one per cent to $1.04 billion.
Auto parts giant Magna International (TSX:MG, Stock Forum) reported quarterly net income attributable to the company was $393 million and diluted earnings per share were $1.76, far below the $2.05 that analysts had expected. Sales were up seven per cent to $8.96 billion.
On the commodity markets, June crude in New York was 28 cents higher to US$100.49 a barrel.
July copper edged up a cent to US$3.05 a pound while June bullion gained $3.80 to US$1,292.70 an ounce.