Canadian stocks could see further weakness on Tuesday after closing notably lower in the previous session. Resource stocks could come under pressure with commodities moving lower on the NYMEX.
The gold and mining sectors could experience weakness as gold for June delivery has dropped $21.50 to $886.70 an ounce, while mining stocks could fall as copper dropped 7.05 cents to $1.915 a pound.
Energy stocks could fall as crude oil has dropped $1.06 to $49.08 per barrel. Investors also considered a slew of economic reports from the sector.
Petro-Canada (PCA.TO) reported first quarter operating earnings of C$111 million or C$0.23 per share, down significantly from C$899 million or C$1.86 per share in the last year comparable quarter.
Nexen (NXY.TO) reported first-quarter net income attributable to Nexen of C$135 million or C$0.26 per share, compared to net income of C$630 million or C$1.19 per share in the same quarter last year.
OPTI Canada (OPC.TO) reported first quarter net loss of C$97 million or C$0.50 per share, compared to restated net loss of C$6 million or C$0.03 per share last year.
Husky Energy (HSE.TO) reported net earnings of $328 million or $0.39 per share for the first quarter of 2009, down from $888 million or $1.05 per share in the prior-year quarter.
Héroux-Devtek (HRX.TO) announced that Lockheed Martin Aeronautics Company has awarded the aerostructure division of Héroux-Devtek (Progressive Inc.), another multi-year contract to manufacture complex structural machined parts and assemblies for the F-35 Lightning II aircraft.
QLT Inc. (QLT.TO) reported first quarter net income of US$1.30 million or US$0.02 per share, compared to a net loss of US$10.47 million or US$0.14 per share last year.
Across the border, the Federal Reserve will begin their two-day meeting today, although little is expected to come out of the meeting, as the interest rate has already been lowered to a near zero range.
Toronto stocks dropped sharply on Monday as worries over the swine flu raised fears of a slower global economic recovery. The S&P/TSX Composite Index fell 154.68 points or 1.61% to move at 9,394.80. The decline was the first in five days for Canada's main index.
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