CANADA STOCKS-TSX looks set to open lower

Thu May 8, 2014 9:22am EDT

(Updates after release of economic data)

May 8(Reuters) - Canadian stocks looked set to open lower, with June futures on the S&P TSX index <0#SXF:> down 0.26 percent at 0920 ET even after better-than-expected Canadian and U.S. economic data.

The index advanced on Wednesday as market-supportive comments from Federal Reserve Chair Janet Yellen helped to fuel gains in energy and financial shares.

Dow Jones Industrial Average futures were up 0.08 percent at 0920 ET while S&P 500 futures were down 0.25 percent and Nasdaq 100 futures were down 0.37 percent.

Canadian housing starts picked up more than expected in April, though it was unlikely to sway expectations that the country's housing market is stabilizing.

U.S. initial jobs claims data was also better than expected.

(Morning News Call newsletter link.reuters.com/nex49s; The Day Ahead newsletter link.reuters.com/mex49s)

TOP STORIES

Valeant Pharmaceuticals International Inc , Canada's largest listed drugmaker, reported a 35 percent jump in cash earnings, helped by robust drug sales in the United States and in its Bausch & Lomb eyecare business.

Telus Corp, one of Canada's largest telecommunications companies, said its quarterly profit rose 4 percent, driven by its wireless business and TV and Internet growth.

Magna International, one of the world's largest auto parts makers, reported a nearly 7 percent rise in quarterly net profit, helped by higher demand in North America and Europe.

Canadian Tire Corp reported a 3.3 percent drop in quarterly net profit attributable to shareholders, largely due to a rise in expenses related to advertising during the Winter Olympics, stock-based compensation, and the spinoff of its property holdings into a REIT.

COMMODITIES AT 0845 ET

Gold futures : $1,288.5; -0.01 pct

US crude : $100.18; -0.58 pct

Brent crude : $107.78; -0.32 pct

LME 3-month copper : $6,713.25.00; +0.89 pct

ANALYST RESEARCH HIGHLIGHTS

Intact Financial : National Bank Financial cuts rating to sector perform from outperform

Tim Hortons : Raymond James, Canaccord Genuity cut target; CIBC raises target

Trican Well : Canaccord Genuity ups to buy; National Bank Financial up target

U.S. ECONOMIC DATA DUE ON THURSDAY

0830 Initial jobless claims: Actual +319,000 prior +344,000

0830 Jobless claims 4-wk avg: Actual +324,750 Prior +320,000

0830 Continued jobless claims: Actual +2.69 mln prior +2.77 mln

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory

($1= $1.09 Canadian) (Reporting by Mononshila Deka in Banagalore; Editing by Ted Kerr)

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