The fading name on the former building of the Toronto Stock Exchange is seen on August 18 2011. THE CANADIAN PRESS/Aaron Vincent Elkaim

TORONTO - The Toronto stock market sought to break three straight days of losses Wednesday amid mixed earnings news from Canada and the U.S. and worries about the eurozone debt crisis.

There have been elevated concerns that Spain, Europe's fourth-biggest economy, will need a bailout as the country is forced to pay ever higher amounts to fund its debt. Yields on the country's key 10-year Treasuries remained above 7.5 per cent, a level considered unsustainable.

The Canadian dollar was up 0.16 of a cent to 98.16 cents US.

U.S. futures headed mainly higher amid better than expected earnings reports from manufacturing giants Boeing and Caterpillar.

The Dow Jones industrial futures gained 116 points to 12,640, the Nasdaq futures fell 6.8 points to 2,541.8 in the wake of an earnings disappointment from Apple Inc. after the close Tuesday while the S&P 500 futures were up 6.3 points to 1,335.8.

In Canada, Teck Resources (TSX:TCK.B) reported an adjusted profit of $312 million, or 53 cents per share, in the second quarter compared with $663 million, or $1.12 per share, in the same period in 2011. The slide came amid a weakening of base metal prices during the quarter.

Quarterly revenues were $2.6 billion, compared with $2.8 billion a year ago.

Teck also warned of tough times ahead due to economic uncertainties in Europe and the United States and less robust growth rates in emerging markets including China.

Natural gas producer Encana Corp. (TSX:ECA) lost US$1.48 billion in the second quarter as it booked charges related to the decline of natural gas prices, and warned it could face additional impairment charges due to the market. Operating earnings were $198 million, or 27 cents per share. Analysts expected Encana to earn 18 cents per share on average and bring in revenues of $1.62 billion.

In the U.S., Apple shares were down more than four per cent in pre-open trading after the company reported its slowest growth in more than two years, and failed to meet analyst expectations.

Quarterly net income was $8.8 billion, or $9.32 per share, up 21 per cent from a year ago. Analysts polled by FactSet were expecting earnings of $10.37 per share. Revenue was $35 billion, up 23 per cent, but lower than expectations for $37.5 billion.

Caterpillar shares jumped 4.4 per cent in pre-open trading after posting net income of US$1.7 billion, or $2.54 a share, up from $1.02 billion, or $1.52, a year earlier. The world’s largest maker of construction and mining equipment beat expectations by 24 cents. Caterpillar also raised its full year earnings forecast.

Aircraft maker Boeing topped analyst estimates, turning in net income of US$967 million or $1.27 a share, higher than the $1.13 that had been forecast. Boeing also boosted its full-year outlook for the second time this year amid 27 per cent growth in commercial jet deliveries and higher military aircraft sales. Its shares rose 2.5 per cent in pre-open trading.

Also helping sentiment Wednesday morning were comments from European Central Bank policymaker Ewald Nowotny, who raised the prospect that the European Stability Mechanism, the eurozone’s planned permanent bailout fund, could be given a banking license. That would give it the ability to borrow money from the ECB, increasing its financial resources.

Meanwhile, Spain's main IBEX 35 index was trading 1.9 per cent higher but that rise followed a series of punishing losses. The country’s borrowing rates also eased slightly but was still around 7.5 per cent, still way above the seven per cent rate considered to be unsustainable in the long-run. Spain is stuck in recession and its banks have billions of euros of toxic loans as a result of the collapsed real estate sector. Eurozone officials approved a bailout of up to €100 billion for Spain’s banks but the worry is that Spain will need a full-scale sovereign bailout.

Greece was back in focus Tuesday amid media reports that the country will have to restructure some €200 billion in debt, which would place more strain on the European Central Bank and the other 16 eurozone countries.

The TSX could find support from the energy and mining sectors on higher prices for oil and metals.

The September crude contract on the New York Mercantile Exchange up 10 cents to US$88.60 a barrel.

Copper prices were up two cents to US$3.38 a pound while bullion advanced $16.30 to US$1,592.50 an ounce.

European bourses were higher with London's FTSE 100 index up 0.19 per cent, Frankfurt's DAX gained 0.82 per cent and the Paris CAC 40 index was up one per cent.

Earlier in Asia, Japan’s Nikkei 225 stock average closed down 1.4 per cent, Hong Kong’s Hang Seng dropped 0.1 per cent and the Shanghai Composite slipped 0.5 per cent.

News from © The Canadian Press, 2012