Canadian stocks may struggle to put an end to a two-day losing streak Tuesday morning, with Bay Street bracing for the start of earnings seasons, which kicks off when bellwether aluminum giant Alcoa (AA) releases its quarterly results.
Toronto stocks closed lower for a second straight session on Monday as lower metal prices led to weakness in the gold, materials and mining sectors. The S&P/TSX Composite Index lost 49.59 or 0.54% to finish at 9,016.17.
Still, its been a great few weeks for the Canadian market, which has made efforts to stabilize following a brutal start to 2009. However, with Wall Street futures indicating a pullback, Canadian stocks could be on the defensive Tuesday.
In corporate news, Garda Security Group (GW.TO: News ) said that CATSA and Garda have successfully negotiated a two-year extension to all of Garda's existing contracts for passenger and baggage security screening operations at 26 airports in Canada.
Homeland Energy Group Ltd. (HEG.TO: News ) said it appointed Andrew Gottwald as chief financial officer, effective April 15, 2009.
The company noted that Gottwald's appointment follows the resignation of Stephen Woodhead as chief financial officer.
Supermarket chain Loblaw Companies Ltd. (L.TO: News ) said Monday it has been authorized the repurchase of up to 13,708,678 of its Common Shares, representing 5% of the 274,173,564 Common Shares currently outstanding, by way of a normal course issuer bid.
On the earnings front, Alcoa, the litmus test for the season, has said its first-quarter results would continue to be callously encroached by the global meltdown that has adversely affected pricing and demand for aluminum, alumina and aluminum products.
Analysts polled by Thomson Reuters expect the company to report a loss of $0.52 per share on revenues of $4.08 billion for the quarter. Analysts' estimates typically exclude special items. In the year-ago period, the company posted earnings of $0.37 per share on revenues of $7.38 billion.
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