Futures Portend Slump at Open - InvestingChannel

Futures Portend Slump at Open

Futures for equities in Canada’s main centre inched lower on Tuesday, weighed by weakness in oil prices as a new, fast-spreading strain of coronavirus in the United Kingdom triggered worries about slower fuel-demand recovery.

The index sank 33.74 points to finish Monday at 17,500.89.

The Canadian dollar hesitated 0.03 cents to 77.77 cents U.S.

March futures were down 0.1% Tuesday.

Ontario on Monday announced a partial shutdown of some businesses starting Boxing Day and banned most indoor gatherings as the country’s most populous province struggles to control a second wave of COVID-19.

Enbridge on Monday said that it will expand its liquids storage capabilities and connections through an acquisition of a facility from Blueknight Energy Partners, L.P. in Cushing, Oklahoma.

RBC cut the target price on Calfrac Well Services to $0.10 from $0.20

Canaccord Genuity raised the target price on Endeavour Mining to $46.00 from $45.00

National Bank of Canada raised the price target on New Look Vision Group to $45.50 from $45.00.

On the economic platform, Statistics Canada said the number of employees receiving pay or benefits from their employer—measured in the Survey of Employment, Payrolls and Hours as payroll employment—continued to rise in October, up by 183,700 (+1.2%) from the previous month.

ON BAYSTREET

The TSX Venture Exchange gained 6.49 points Monday to 822.69.

ON WALLSTREET

U.S. stock futures rose slightly early Tuesday after Congress approved a long-delayed coronavirus relief package.

Futures for the Dow Jones Industrials gathered 24 points, or 0.1%, at 30,137.

Futures for the S&P 500 added 8.75 points, or 0.2%, at 3,694.50.

Futures for the NASDAQ Composite jumped 68 points, or 0.5%, to 12,571.56.

Congressional leaders attached $900-billion in pandemic aid to a $1.4-trillion measure to fund the government through Sept. 30. Treasury Secretary Steven Mnuchin told the media on Monday that Americans could receive their stimulus checks in a matter of days.

President Donald Trump is expected to sign it into law in the coming days, weeks before he will leave office.

The market started the holiday week on a sour note as fears about a new variant of COVID-19 in the U.K. emerged. Many European countries implemented travel restrictions on visitors from the U.K., and New York Gov. Andrew Cuomo called for the United States to take similar steps.

However, many experts, including those from the World Health Organization, said on Monday that the coronavirus vaccines from Pfizer and Moderna would likely be effective against the new variant and that COVID was mutating at a slower pace than the seasonal flu.

Monday was also the first trading day where Tesla was a member of the S&P 500. The electric vehicle stock shed 6.5%, with part of that loss coming after Reuters reported that Apple was targeting 2024 as a date to introduce its own passenger vehicle. Shares rose 0.8% in pre-market Tuesday.

On the economic data front, investors will receive new readings on consumer confidence and existing home sales, along with the final reading on third-quarter gross domestic product.

Overseas, in Japan, the Nikkei 225 sank 1% Tuesday, while in Hong Kong, the Hang Seng index slumped 0.7%.

Oil prices dipped 46 cents to $47.51 U.S. a barrel.

Gold prices slid $3.30 at $1,879.50 U.S.