Futures Back on the Upward Track - InvestingChannel

Futures Back on the Upward Track

Futures for Canada’s main stock index rose on Wednesday, tracking a bounce in global stocks as oil recovered from early losses.

The S&P/TSX Composite Index dumped 448.22 points, or 3.1%, to end Tuesday at 13,940.06.

The Canadian dollar gained back 0.25 cents early Wednesday to 70.67 cents U.S.

June futures took on 1.3% Wednesday.

Canadian Pacific Railway said on Tuesday it expects full-year adjusted earnings to be flat due to the coronavirus pandemic and warned of rapidly slowing crude volumes.

Canaccord Genuity cut the rating on Canwel Building Materials Group to sell from hold

Canaccord Genuity cut the rating on Hardwoods Distribution to hold from buy

Citigroup cut the rating on Teck Resources to neutral from buy

Economically speaking, Statistics Canada reported Canada’s consumer price index rose 0.9% on a year-over-year basis in March, down from a 2.2% increase in February. On a seasonally-adjusted monthly basis, the CPI declined 0.9% in March, following a 0.1% gain in February,

The agency’s new housing price index was up 0.3% in March.

ON BAYSTREET

The TSX Venture Exchange collapsed 6.82 points, or 1.5%, Tuesday to 437.94.

ON WALLSTREET

U.S. stock futures pointed to gains at the open on Wednesday, following recent weakness in markets aggravated by oil’s massive decline as crude prices attempted to stabilize in early trading.

Futures for Dow Jones Industrials recovered 235 points, or 1%, early Wednesday to 23,164.

Futures for the S&P 500 gained 26 points, or 1%, at 2,758

Futures for the NASDAQ Composite vaulted 81.75 points, on 1%, to 8,513.50.

Investors also digested another batch of corporate earnings showing the economic fallout of the virus on Tuesday. Shares of IBM fell 3% after reporting a decline in revenue. Coca-Cola fell 2.5% as the beverage company said global volumes plunged 25% due to the coronavirus pandemic.

Netflix and Chipotle Mexican Grill both rose in extended trading following their quarterly earnings reports. Netflix reported global streaming net additions came in at 15.8 million, far higher than the 8.2 million expected.

Netflix, which has rallied nearly 35% this year, is benefiting from the stay-at-home trend. Chipotle saw digital sales surge more than 80% as the revved-up online orders during the coronavirus shutdown.

Before the bell on Wednesday, Delta Air Lines, AT&T, and Biogen will report earnings.

The West Texas Intermediate contract for June was down slightly, trading at $11.33 per barrel. Brent futures, meanwhile, were up 0.3% at $19.39 per barrel, recovering from a sharp overnight drop.

Moreover, Senate Republicans and Democrats on Tuesday passed a $484-billion coronavirus relief package that focused on small businesses, hospitals, and testing. The House could approve the bill as early as Thursday.

Overseas, in Japan, the Nikkei 225 moved downward 0.7% Wednesday, while in Hong Kong, the Hang Seng Index gained 0.4%.

Oil prices acquired 37 cents to $11.94 U.S. a barrel.

Gold prices improved $24.20 to $1,712 U.S. an ounce.