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TSX to advance amid strong earnings news; BCE set to privatize Bell Aliant(Canadian Press DataFile Via Acquire Media NewsEdge) TORONTO - The Toronto stock market looked to start the session positive Wednesday amid a multi-billion dollar deal in the telecom sector. BCE Inc. (TSX:BCE) is privatizing regional telecom affiliate Bell Aliant (TSX:BA) in a deal worth roughly $3.95 billion. The telecom giant already controls 44 per cent of Bell Aliant and is acquiring the remaining approximately 127.5 million common shares it doesn't own. Those minority shareholders will receive cash and BCE shares for a combined value of $31 per share. The Canadian dollar was up 0.1 of a cent to 93.24 cents US. U.S. futures also advanced amid a strong earnings report from aerospace giant Boeing Inc. The Dow Jones industrial futures gained 21 points to 17,054, the Nasdaq futures were up 15.3 points to 3,965.8 and the S&P 500 futures climbed 3.5 points to 1,978.5. Boeing reported a profit of $1.65 billion, or $2.24 a share, up 52 per cent from a year earlier and beating estimates of $2.01 a share. Revenue of $22.05 narrowly missed expectations of $22.23 billion and its shares were up 1.3 per cent in pre market trading as Boeing boosted its earnings guidance for the year. PepsiCo Inc. reported earnings that decreased by two per cent in its second quarter, but beat analysts' expectations. Net income fell to $1.98 billion, or $1.29 per share. Adjusted earnings were $1.32 per share, nine cents ahead of estimates. Revenue of $16.89 billion matched estimates and its stock advanced 2.22 per cent in pre-market trading. Two tech giants posted better-than-expected earnings reports after the close. Apple Inc. reported a 12 per cent increase in its quarterly profit, exceeding analysts’ estimate. The company said its iPhone shipments rose 13 per cent over a year earlier and its shares gained 0.55 per cent in pre market trading. Microsoft’s CEO painted a rosy vision for the company’s future after saying its profit excluding items related to the absorption of Nokia was higher than forecasts. Microsoft shares rose 2.14 per cent in pre market trading. Stocks finished higher Tuesday amid a strong earnings report from Canadian National Railway (TSX:CNR) and data showing inflation in the U.S. rose 0.3 per cent in June, which matched expectations. That was good news for investors as a higher reading would have raised a fresh round of concerns about when the U.S. Federal Reserve might decide to start hiking rates. Traders were also relieved after the European Union stopped well short Tuesday of moving to jump quickly to so-called Phase 3 sanctions that could cripple the Russian economy and possibly derail a fragile European economic recovery. They did agree to expand a list of Russian organizations and individuals subject to asset freezes and travel bans. It also threatened to target vast sectors of the Russian economy if Moscow did not act swiftly to rein in the pro-Russian rebels blamed for shooting down a Malaysian airliner last week. On Wednesday, Ukraine’s Defence Ministry said two Ukrainian military fighter jets have been shot down in the eastern part of the country. On the commodity markets, September crude in New York rose eight cents to US$102.47 a barrel. August gold gained $2.10 to US$1,308.40 an ounce, while September copper was unchanged at US$3.21 a pound. © 2014 The Canadian Press. All rights reserved. |