CANADA STOCKS-TSX may open lower following Carl Icahn comments

Tue Nov 19, 2013 8:28am EST

Nov 19 (Reuters) - Canada's main stock index looked set to open lower on Tuesday after billionaire investor Carl Icahn's comments on the recent rally in stock markets spurred investor caution.

TOP STORIES

* Activist investor Carl Icahn said on Monday he is "very cautious" on the stock market, saying he could see a "big drop" because earnings at many companies are fueled more by low borrowing costs rather than the strength of management.

* The European Central Bank must consider buying government and corporate bonds to help the euro zone avoid a Japanese-style deflationary spiral, the OECD said.

* A recovery in the U.S. housing market helped Home Depot to top profit and sales estimates for the third quarter, prompting the No. 1 home improvement chain to raise its fiscal-year outlook for the third time this year.

* Sears Canada reported a wider quarterly loss as it took one-time charges of C$42.8 million related to restructuring and asset impairment.

* Best Buy Co Inc reported a profit in the third quarter, reversing a year-ago loss, boosted by tight cost controls.

* Exxon Mobil Corp has agreed to sell its 60 percent stake in a Hong Kong utility and a power storage firm for a combined $3.4 billion, helping the U.S. oil major raise funds to plough back into its core operations.

MARKET SNAPSHOT

* Canada stock futures traded down 0.04 percent

* U.S. stock futures , , were down around 0.2 percent to 0.08 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 273.6213; rose 0.05 percent

* Gold futures : $1,271; fell 0.09 percent

* US crude : $92.82; fell 0.23 percent

* Brent crude : $108.25; fell 0.2 percent

* LME 3-month copper : $6,974.5; fell 0.01 percent

CANADIAN STOCKS TO WATCH

* Bombardier Inc : The company has signed a letter of intent to sell five CSeries jetliners to Iraqi Airways, the plane and train maker said.

ANALYSTS' RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Genworth MI Canada Inc : Canaccord Genuity raises price target to C$34.50 from C$33 on valuation based on improved loss ratios.

* Midway Gold Corp : Canaccord Genuity raises to speculative buy from hold after the company announced that Barrick Gold Corp has completed its earn-in requirements for a 70 percent interest of the Spring Valley JV.

* North American Palladium Ltd : CIBC cuts to sector underperformer from sector performer on valuation after the company's third-quarter results were overshadowed by the likely need for yet more capital following a slower-than-expected ramp-up.

* Spyglass Resources Corp : CIBC raises price target to C$1.75 from C$1.60, says though the company's third-quarter results were weak, it looks on track to meet its year-end exit guidance.

ON THE CALENDAR

* No major Canadian economic data scheduled for the day

* Major U.S. events and data includes Redbook and employment costs

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