Toronto stocks look set to open flat Tuesday amid mixed earnings reports and a further drop in crude oil prices.

Crude-oil prices lost four cents to $US59.43 a barrel in early trading Tuesday, as forecasts of warm weather in the U.S. further eased concerns about rising heating fuel demand.

In today’s earnings news, Magna International Inc. reported an increase in third-quarter profit with sales growing to US$5.38 billion.

Rona Inc. said its profit rose nearly 22% in the third quarter as an acquisition in Alberta helped produce a solid jump in revenues.

Profits at aluminum giant Alcan Inc. were cut in half in the latest quarter as the company faced seasonally weak demand and reported lower revenues after the spinoff of its aluminum can business.

In other business news, New York takeover investor Carl Icahn disclosed that he and affiliates control 9.3% of Fairmont Hotels & Resorts of Toronto. Documents filed with the U.S. Securities and Exchange Commission indicate outline a number strategic options for the firm, including a sale of the company or some of its hotels and other assets, declaration of a dividend or execution of a stock buyback.

In Europe, further weakening of the euro and of crude oil lifted auto makers, including DaimlerChrysler, while drug maker Sanofi-Aventis posted a 29% rise in third-quarter profit. In London, the FTSE 100 was flat recently.

In Asia, the Japanese Nikkei 225 ended 0.2% lower at 14036.73.

In Hong Kong, the Hang Seng Index gained 37.41 points, or 0.3%, to 14,403.20.


On Monday, Toronto stocks nudged ahead, as a strong day in the financial index offset losses in the energy group.

The S&P/TSX composite index finished up 6.34, or 0.06%, to 10,681.18.

The financial sector moved ahead 1.01%.

Industrial Alliance Insurance offered $273-million to purchase Clarington, topping a bid by CI Financial. The IA bid has received the blessing of Clarington’s board.

Industrial Alliance gained 14¢, or 0.49%, to $28.71, Clarington lifted $1.30, or 10.16%, to $14.10, and CI Financial fell 25¢, or 1.10%, to $22.50.

In other corporate news, U.S. private equity firm Golden Gate Capital bid US$1 billion for Markham, Ont.-based Geac Computer Corp., a deal Geac has agreed to. Shares in Geac shot up $2.34, or 22.52%, to $12.73.

The junior S&P/TSX Venture composite index ended flat, off 0.30 a point at 2,030.33.

In New York, lower oil prices spurred markets higher.

The Dow Jones industrial average gained 55.47 points, or 0.53%, to 10,586.23, the S&P 500 index was up 2.67, or 0.22%, at 1,222.81, and the Nasdaq composite index advanced 8.81, or 0.41%, to 2,178.24.