Canada’s main stock index continued to seek direction midday Tuesday, despite higher readings for energy stocks as oil prices soared on supply disruptions in Norway, a new hurricane in the Gulf of Mexico and U.S. President Donald Trump’s return to the White House from hospital.
The TSX dipped 12.73 points to greet noon hour at 16,379.46.
The Canadian dollar sank 0.11 cents to 75.31 cents U.S.
The largest percentage gainer on the TSX was Vermilion Energy which jumped five cents, or 1.5%, to $3.39, after brokerage Canaccord Genuity upgraded the oil producer to “speculative buy” from “hold”.
New Gold advanced 23 cents, or 8.9%, to $2.81.
Cascades fell $1.25, or 7.1%, the most on the TSX, to $16.36, after the paper and packaging company announced plans to proceed with the Bear Island mill conversion project.
The second biggest decliner was electric utility Brookfield Renewable Partners L.P. down $3.43, or 4.7%, to $70.29.
On the economic slate, Statistics Canada reported that, after two months of strong growth, Canadian merchandise exports and imports stabilized in August. Imports fell 1.2%, while exports were down 1.0%.
As a result, Canada’s merchandise trade deficit with the world narrowed slightly from $2.5 billion in July to $2.4 billion in August.
ON BAYSTREET
The TSX Venture Exchange remained in the green 2.08 points to 714.88.
Seven of the 12 TSX subgroups were negative to start the session, with materials sliding 1.3%, gold down 1.2%, and utilities off 0.5%.
The five gainers were led by energy and real-estate, each ahead 1%, while financial stocks were better by 0.7%. .
ON WALLSTREET
Stocks were little changed on Tuesday as traders looked for clues on further coronavirus stimulus following a sharp rally in the previous session.
The Dow Jones Industrial Average held onto gains of 15.16 points to break for lunch at 28,163.80, following Monday’s 400-point-plus journey upward.
The S&P 500 shed 3.05 points to 3,405.58.
The NASDAQ dropped 35.86 points to 11,296.63.
Goldman Sachs and Dow Inc. were the best-performing names in the 30-stock average, climbing at least 2% each. However, Boeing dropped 2% after the company said it expects the coronavirus pandemic to hurt sales for more than a decade.
Big Tech was under pressure as traders increased positions in companies that would benefit from the economy reopening. Amazon and Apple dipped 2% and 2.3%, respectively. Netflix slipped 2.1%. Alphabet pulled back by 1.3%.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke for an hour on Monday regarding another stimulus package but did not reach an agreement. Pelosi’s spokesman Drew Hammill said in a tweet that the two planned to speak again on Tuesday.
Federal Reserve Chairman Jerome Powell reiterated the need for more fiscal stimulus so the economic recovery can continue.
President Donald Trump left Walter Reed National Military Medical Center on Monday night, though White House physician Dr. Sean Conley acknowledged earlier in the day that Trump “may not entirely be out of the woods yet.”
Prices for the 10-Year Treasury stood pat, keeping yields at Monday’s 0.77%.
Oil prices added 97 cents to $40.19 U.S. a barrel.
Gold prices turned lower $9.70 to $1,910.40 U.S. an ounce.