North American stocks may open mixed Thursday as investors react to a soft forecast from eBay and falling prices for crude oil.
EBay said third-quarter profit rose 40% and revenue increased 37% as its main auction business showed signs of reaccelerated growth, but the Internet auctioneer’s shares fell after hours Wednesday because of a lower-than-expected earnings forecast for next year.
In today’s economic news, the U.S. Labor Department said jobless claims decreased by 35,000 to 355,000, after seasonal adjustments, in the week that ended Oct. 15. Wall Street expected the claims to fall by 24,000.
Later today, the U.S. Conference Board’s leading economic indicators for September and the October Philadelphia Fed survey will be released.
Crude-oil prices fell 44¢ to US$61.97 a barrel in early trading Thursday as supply disruptions ease in the Gulf of Mexico and traders consider bearish U.S. crude and product inventory data released Wednesday.
There are no major economic releases from Statistics Canada today.
In today’s earnings news, Ford Motor swung to a net loss in the third quarter of US$284 million, as the No. 2 U.S. auto maker is being squeezed by falling sales of sport-utility vehicles and rising health-care costs.
Coca-Cola’s profit increased 37% in the third quarter, as unit case volume rose 5% led by growth in its international operations.
Nokia posted 29% growth in third-quarter earnings, on rising demand for phones with cameras and music players, and growth in emerging markets.
Sears Canada Inc. fell to a third-quarter loss of $37.4 million as revenues slipped and the big retailer booked $83.8 million in one-time, pre-tax charges.
Overseas, Japan’s Nikkei 225 broke a six-session losing run, rising 0.5% to 13190.46 as investors bought high-tech and telecommunication stocks. London’s FTSE 100 climbed 0.8% recently.
Toronto stocks rallied Wednesday, after a volatile session, drawn forward by the energy sector and the financials group
The S&P/TSX composite index closed up 80.69 points, or 0.78%, or 10,425.78, after spending much of the day lower and hitting an intra-day bottom of 10,205.00
The energy index closed 3.52% higher, despite a drop in the price of oil. A barrel of light crude settled at US$62.41, down $1.10, on the New York Mercantile Exchange. The U.S. Department of Energy reported crude oil inventories rose 5.55 million barrels last week.
EnCana Corp. gained $5.49, or 9.78%, to $61.65 in heavy trading of 8 million shares amid persistent rumours the energy company is coveted by one of the world’s biggest oil and gas producers.
Royal Bank announced it would take a fourth-quarter pre-tax charge of US$500 million US in anticipation of penalties arising from an Enron-related lawsuit. RBC rose 89¢, or 1.07%, to $83.80.
The junior S&P/TSX Venture composite exchange fell 42.39 points, or 2.08%, to 1.992.82.
In New York markets closed higher on lower energy prices and a U.S. Federal Reserve report that suggested recent economic growth has been gradual, somewhat easing investors’ concerns over inflation.
The Dow Jones industrial average gained 128.87, or 1.25%, to 10,414.13. The S&P500 index rose 17.61, or 1.49%, to 1,195.75, while the Nasdaq composite index advanced 35.24, or 1.71 %, to 2,091.24.