Bay Street May Open With Negative Bias

Bay Street May Open With Negative Bias

Canadian shares are likely to open with a negative bias on Thursday, weighed down by weak guidance from Facebook parent Alphabet, and disappointing results from IBM.

Higher crude oil prices may trigger some buying in the energy sector and limit market\'s downside. Investors will also be reacting to a slew of earnings updates from Canadian companies.

Secure Energy Services Inc. (SES.TO) said it recorded net income of $422 million or $1.50 per basic share in the first quarter of 2024, an increase of $367 million or $1.32 per basic share compared to the first quarter of 2023.

Precision Drilling Corporation (PD.TO) reported first-quarter net earnings of $37 million or $2.53 per share, compared to $96 million or $7.02/share in the first quarter of 2023.

Mullen Group Ltd. (MTL.TO) reported first-quarter net income of $22.2 million, compared to $31.7 million in the year-ago quarter.

After five successive days of gains, the Canadian market turned in a weak performance on Wednesday with stocks from industrials and communications sectors declining sharply.

The benchmark S&P/TSX Composite Index, which tumbled to 21,796.88 about an hour past noon, ended with a loss of 138.00 points or 0.63% at 21,873.72.

Asian stocks ended lower in thin holiday trading on Thursday, with the Australian and New Zealand markets closed for Anzac Day. Revenue warnings from Facebook parent Meta Platforms weighed on sentiment.

European stocks are broadly lower with investors reacting to some disappointing earnings, and awaiting U.S. GDP data, weekly jobless claims data, and personal income & spending report.

In commodities, West Texas Intermediate Crude oil futures are up $0.36 or 0.43% at $83.17 a barrel.

Gold futures are up $1.50 or 0.08% at $2,339.90 an ounce, while Silver futures are up $0.069 or 0.25% at $27.415 an ounce.

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