Feb. 2, 2010 (Baystreet.ca) --
Following strong gains in the previous sessions, Canadian stocks are set to claw back more of last week's big losses, bolstered by rebounding gold and energy prices.
The S&P/TSX Composite Index inched its way out of the starting blocks, gaining 29.61 points to 11,347.16.
Oil stocks may be in play, with February crude gaining in price. Further, an encouraging earnings report from the country's largest oil company, Suncor Energy, may also help improve traders' sentiment.
Europe's biggest oil company, BP PLC, also reported that it swung to profit in the fourth quarter 2009. However, it said that it expects the recovery from last recent recession to be 'slow and gradual.'
Gold stocks are likely to attract buyers after the price of bullion recovered from its three-week low, hit last week.
In corporate news, Suncor Energy swings to profit by reporting fourth-quarter net earnings of $0.29 per share, compared to a net loss of $0.24 per share in the fourth quarter of 2008.
Computer security services provider Absolute Software posted second-quarter net loss of $0.05 per share, narrower than $0.32 per share in the prior year period.
Information services provider Xenos Group announced that approximately 9.5 million of its common shares had been validly deposited to the offer by Actuate on February 1.
Integrated oil company Cenovus Energy recommended that its shareholders reject unsolicited offer made by TRC Capital Corp. The offer price of $23.55 per common share represents about a 4.8% discount to the $24.75 closing price for Cenovus's common shares on the Toronto Stock Exchange on January 27.
Toronto Stock Exchange operator TMX Group said a reduction in stock trading fees for 'penny stocks' would cost it about $15 million a year.
Printing papers dealer Catalyst Paper Corp. announced that it will defer its $100-million rights issue, pending search for a new CEO.
Mineral property developer Calibre Mining Corp. announced that it has promoted Paulo Santos to Chief Financial Officer from previous position as Controller.
Candente Gold revealed the appointment of John Foulkes as Vice President of Corporate Development. Foulkes has over 10 years of experience managing Corporate Development and Investor Relations programs for Canadian and US public companies.
With no major economic news on tap from Canada, traders will look to commodity price movements to get clues.
The Canadian dollar gained another 0.08 cents to 94.25 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups were higher, led by information technology, up 0.8%, while consumer discretionary stocks and real-estate were up 0.7% each.
The two laggards were telecoms and energy, off 0.6%.
The TSX Venture Exchange was 4.84 points better at 1,514.78, while the Nasdaq Canada index was ahead 4.87 points to 704.95.
ON WALLSTREET
In New York, stocks looked set for a slightlly higher start Tuesday, with investors awaiting auto sales and a Senate hearing on proposed new rules on financial reform.
The Dow Jones industrial average tacked on another 21.76 points at the outset to 10,207.29. The S&P 500 index gained 2.54 points to 1,091.73. The Nasdaq composite was ahead 0.97 points to 2,172.17.
Wall Street bounced back from two-month lows on Monday, with stronger-than-expected readings on the economy -- including personal income, manufacturing and Exxon Mobil's profit -- helping to fuel the rally.
On Tuesday, investors will look to auto sales, which are due out in the middle of the day. A reading on pending home sales also is on tap.
Former Fed chairman Paul Volcker is due to testify before the Senate Banking Committee at a hearing on financial reform.
The hearing is expected to clear up some of the uncertainty over limits on banks proposed by President Obama last month.
The onslaught of corporate reports goes on, with Archer Daniels Midland, Dow Chemical and UPS among the firms slated to release their financial results.
Treasury prices moved up, lowering the yield on the 10-year note to 3.63% from Monday's 3.65%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil went up 87 cents to $75.30 U.S.
Gold prices added $11 to $1,116 U.S.