The Canadian Press

The Toronto stock market appeared to be heading for a lower open Wednesday following three losing sessions as oil prices drift lower and investors remain cautious about the strength of a U.S. economic recovery.

New York markets were also likely in for a negative open as the Dow Jones futures were down 35 points to 9,800, the Nasdaq futures eased 2.8 points to 1,717 while the S&P futures lost 4.2 points to 1,0562.

The Canadian dollar moved lower, down 0.73 of a cent to US93.07¢.

The December crude contract on the New York Mercantile Exchange dropped 60¢ to US$78.95 a barrel despite data from the American Petroleum Institute showing a decline of 3.5 million barrels in crude inventories for the week ended Oct. 23.

Mining stocks could be under pressure as the December bullion contract on the Nymex lost US$2.60 to US$1,032.8 an ounce while December copper in New York backed off 4¢ to US$2.96 a pound.

The main TSX index fell 181 points Tuesday, adding up to a loss of about 4% over three sessions, amid a surprise drop in U.S. consumer confidence. But analysts also pointed out that a round of profit taking wasn’t surprising considering the TSX had gained about 50% since the lows of March with hardly a break.

Canadian investors are also taking in third-quarter earnings reports this week. On Wednesday, energy company Nexen Inc. (TSX:NXY) reported that its profit in the third quarter fell to $122 million or 23¢ a share, down 86% from the same time last year, beating analyst estimates by a penny a share. Nexen’s revenue was cut in half to $1.1 billion from $2.2 billion due to to a combination of lower output because of maintenance downtime, reduced sales volume because of the economy and lower prices.

And late Tuesday, Methanex Corp. (TSX:MX) reported a loss in its most recent quarter compared with a profit a year ago as revenue fell sharply due to lower methanol prices. It lost $831,000 or a penny per diluted share in the quarter ended Sept. 30 compared with a profit of $70 million or 74¢ per diluted share a year ago. Analysts were expecting a loss of 4¢ a share.

Investors will weigh the U.S. Commece Department’s reports on U.S. durable goods and new home sales hoping for a spark that has been absent from the market so far this week.

Orders to factories for items that are expected to last at least three years, like autos, computers and aircraft, likely grew in September. Economists expect orders increased 1% in September, after a 2.6% decline in August.

Data on new home sales is expected to show sales jumped in September for the sixth straight month.

In another sign the financial sector still might not be fully recovered, GMAC Financial Services is in talks with the Treasury Department for a third bailout. The auto and mortgage lender has been among the hardest hit financial firms by rising loan defaults and faulty credit markets.

The U.S. government already holds a 35% stake in GMAC after giving it with US$12.5 billion in bailout money.

Major Asian markets fell as signs American consumers were struggling undermined hopes for a stronger turnaround in the world’s largest economy.

In Japan, the benchmark Nikkei 225 index lost 1.4% while Hong Kong’s main index retreated 1.8%.

London’s FTSE 100 index lost 1.56%, Frankfurt’s DAX was down 1.48% and the Paris CAC 40 declined 1.42%.