Canadian Stocks Flat Amid Trade Uncertainty
Futures for Canada's main stock index remained subdued on Thursday following a recent rally, amid uncertainty over future trade agreements, with investors also focusing on the U.S. Federal Reserve Chair's speech later in the day.
The TSX Composite Index galloped 75.59 points by Wednesday’s closing bell to 25,629.45
June futures forfeited 0.1% Thursday.
The Canadian dollar faded 0.04 cents to 71.50 cents U.S.
In corporate news, Strathcona Resources sold its Montney assets for about $2.84 billion and acquired Hardisty Rail Terminal as part of its "core area consolidation" strategy.
Federal Finance Minister Francois-Philippe Champagne said on Wednesday the new Liberal government will table an economic update later in the year, implying no annual budget would be presented in the near term.
On the economic slate, Canada Mortgage and Housing Corporation reports housing starts for all areas in Canada increased 30% in April (278,606 units) compared to March (214,205 units).
Statistics Canada reported manufacturing sales declined 1.4% in March, mainly due to lower sales in the primary metal and petroleum and coal product subsectors. Conversely, the furniture and related product subsector posted the largest monthly gain.
Moreover, wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) rose 0.2% to $86.5 billion in March.
Later this morning, the Canadian Real Estate Association posts its MLS sales ----------- for April.
ON BAYSTREET
The TSX Venture Exchange dipped 7.17 points, or 1.1% Wednesday, to 658.65.
ON WALLSTREET
Stock futures Thursday after the S&P 500 strung together a third consecutive advance in reaction to the Trump administration and China hammering out a temporary suspension of their tit-for-tat tariff dispute.
Futures for the Dow Jones Industrials index got hammered 143 points, or 0.3% to 41,974
Futures for the S&P 500 index sagged 25.25 points, or 0.4%, to 5,883.25
Futures for the NASDAQ lost 114.75 points, or 0.5%, to 21,277.75.
Shares of Foot Locker surged more than 82% after the company announced that it would merge with Dick’s Sporting Goods for $2.4 billion. UnitedHealth slid 6% after the Wall Street Journal reported, citing people familiar, that the Justice Department is probing the insurer.
A UnitedHealth spokesman later told the media that the insurer has not been notified by the DOJ of the “supposed” investigation reported.
Tech giants are putting up a strong showing week to date: Nvidia and Tesla are both up more than 16%, and Meta Platforms has added 11.3% in the period. Amazon and Alphabet are both up more than 8% each.
Also due out: earnings for the fiscal first-quarter from Walmart, the nation’s largest retailer.
Traders will look for further signs of a steady economy on Thursday, when the producer price index, retail sales and industrial production numbers for April are released before the stock market opens. Weekly jobless claims are also slated for release.
In Japan, the Nikkei 225 index handed back 1% Thursday, while in Hong Kong, the Hang Seng faded 0.8%.
Oil prices fell $2.27 to $60.88 U.S. a barrel.
Gold prices dropped $9.60 to $3,178.70 U.S. an ounce.
