Positive Start Likely On Bay Street

(RTTNews) - Canadian stocks may open higher on Thursday as firm precious metals prices may trigger some strong buying in the materials sector. Investors will also be reacting to a slew of corporate earnings announcements.

Concerns about Middle East tensions could weigh and render the mood a bit cautious.

In earnings news, Bombardier Inc. reported a slight decline in its second-quarter net income, despite revenue growth. Net income decreased to $191 million or $1.84 per share, from $193 million in the prior-year period.

TransCanada reported earnings per share of $0.94 for the second-quarter, compared with $0.82 a year ago.

Loblaw Companies Ltd.'s EPS fell to $0.66 in the second quarter, from $2.40 a year earlier.

Canadian Pacific Railway, Fairfax Financial, Power Of Canada and Pembina Pipe Line are schedule to announce their quarterly results today.

In economic news, data from Statistics Canada showed wages in Canada increased 3.4% in May over the same month in the previous year.

Canadian stocks slumped on Wednesday, snapping a three-session winning streak, as investors refrained from risky moves after the U.S. and Iran ended a four-day pause on mutual attacks and parsed the interest rate decision by the U.S. Federal Reserve.

The benchmark S&P/TSX Composite Index ended with a loss of 415.92 points or 1.16% at 35,333.78.

Asian stocks fell broadly on Thursday, reversing early gains as investors reacted to escalating Middle East tensions, mixed tech earnings and a sell-off in U.S. bond markets amid uncertainty over where U.S. interest rates are headed.

Tech earnings proved to be a mixed bag, with Microsoft posting strong quarterly earnings and Samsung Electronics forecasting strong AI chip demand, while Meta Platforms issued a weaker-than-expected revenue forecast.

The major European markets are up in positive territory Thursday afternoon, with the French market outperforming thanks to some upbeat earnings reports. Worries about rising Middle East tensions limit upside.

In commodities trading, West Texas Intermediate crude oil futures are down $0.60 or 0.7% at $83.86 a barrel.

Gold futures are up $94.70 or 2.35% at $4,131.00 an ounce, while Silver futures are gaining $0.341 or 0.59% at $58.430 an ounce.