Stocks head to higher open as investors search for more confidence

By David Friend, The Canadian Press

TORONTO - The Toronto stock market appeared headed for a higher opening Tuesday as investors search for further reasons to be optimistic about the global economy.

Expected to grab attention is Canwest Global Communications Corp. (TSX: CGS.TO), which announced that certain units of the company will seek court protection under the Companies' Creditors Arrangement Act.

Ahead of the opening bell, Dow Jones industrial average futures rose 71, or 0.7 per cent, to 9,617. Standard&Poor's 500 index futures rose 10 points, or one per cent, to 1,046.4, while Nasdaq 100 index futures rose 13, or 0.8 per cent, to 1,687.

The Canadian dollar was up 0.73 of a cent to 94.18 cents US after rising 1.07 cents Monday, when the S&P/TSX composite index ended the session up 144.29 points.

Influential TSX energy stocks could move higher as the November crude contract on the New York Mercantile Exchange moved up 84 cents to US$71.25 a barrel. Oil had advanced 46 cents Monday.

In Canadian corporate news, Jean Coutu Group (TSX: PJC-A.TO), the largest pharmacy chain in Quebec, reported a 7.3 per cent increase in revenue to $608.7 million in its latest quarter.

Armtec Infrastructure Income Fund (TSX: ARF-UN.TO) announced a $26.9-million contract to supply concrete sewer piping for a 15-kilometre segment of the York Durham Sewage System.

In the tech sector, BCE Inc.'s Bell Canada (TSX: BCE.TO) says it will begin offering two models of the Apple iPhone smartphone in November, a move that will put added pressure on rival Rogers Communications (TSX: RCI-B.TO).

On Monday, The Institute for Supply Management said its service index, which tracks more than 80 per cent of the country's economic activity, rose to 50.9 in September from 48.4 in August. It was the first reading above 50, which indicates growth, since August 2008. Economists were expecting a reading of 50.

Investors had been selling off stocks for the past two weeks as economic reports failed to meet expectations, indicating an economic rebound could be slow and uneven. With fresh signs of growth, traders found reason to head back into the stock market.

Overseas, in afternoon trading, Britain's FTSE 100 gained 1.5 per cent, Germany's DAX index jumped 1.6 per cent, and France's CAC-40 gained 1.4 per cent. Japan's Nikkei stock average rose 0.2 per cent.