Futures linked to Canada’s main stock index inched lower on Tuesday on weak metal prices, while investors awaited data on Canada’s inflation and U.S. retail sales due later in the day.
The TSX dipped 35.28 points to conclude Monday at 20,226.79.
September futures were down 0.1% Tuesday.
The Canadian dollar was virtually unchanged at 76.73 cents U.S.
Among companies, brokerage Credit Suisse upgraded convenience store operator Alimentation Couche-Tard Inc to “outperform” from “neutral.”
Economically speaking, Statistics Canada said its consumer price index rose 2.8% on a year-over-year basis in June, following a 3.4% increase in May. On a seasonally adjusted monthly basis, the CPI rose 0.1% in June.
The agency also reported its industrial produce price index fell 0.6% month over month in June and fell 5.5% year over year., while its raw materials price index declined 1.5% on a monthly basis in June and was 19.7% lower compared with June 2022.
Moreover, Canada Mortgage and Housing Corporation reported housing starts increased by 41% over a month earlier to 281,373 units in June 2023, above market expectations of 220,000 units and marking the largest change in over 10 years, according to the Canada Mortgage and Housing Corporation.
ON BAYSTREET
The TSX Venture Exchange dropped three points to 625.44.
ON WALLSTREET
Stock futures in New York were little changed Tuesday as a busy day of earnings got under way.
Futures for the Dow Jones Industrials faded 13 points to 34,750.
Futures for the S&P 500 slipped 2.5 points, or 0.1%, to 4,551.25.
Futures for the NASDAQ eked lower 1.9 points to 15,821.75.
Bank of America reported better-than-expected earnings for the second quarter, thanks to higher interest rates. Bank of N.Y. Mellon’s earnings also exceeded expectations for the bottom line, sending its stock up more than 1%.
Morgan Stanley beat on both revenue and adjusted earnings per share thanks to record revenue in its wealth management segment. PNC Financial, meanwhile, dropped more than 2% on the back of mixed second-quarter numbers. J.B. Hunt is slated to report after the bell.
The earnings season is off to a strong start, with roughly 82% of the S&P 500 companies that reported exceeding profit estimates, according to FactSet.
The season comes as recent inflation data boosts the case for a soft-landing scenario among many investors, and stocks continue this year’s rally. But some skepticism lingers.
On the economic front, retail sales and industrial production data for June are due out Tuesday.
In Japan, the Nikkei 225 returned to trading with a gain of 0.3%. while in Hong Kong, markets returned to work Tuesday after being
shuttered for fear of a typhoon, but were pounded 2.1%.
Oil prices added 26 cents to $74.41 U.S. a barrel.
Gold prices hiked $10.80 to $1,967.20. U.S. an ounce.