Futures Back off Slightly
Futures tied to Canada's benchmark index nudged lower on Tuesday as market mood soured over the fading prospects of a U.S.-EU trade deal, while investors tracked corporate earnings to assess the impact of President Donald Trump's tariffs on businesses.
The TSX Composite Index inched higher 2.99 points to end Monday at 27,317.
September futures were down 0.2% Tuesday.
The Canadian dollar was flat at 73.11 cents U.S.
Trade negotiations appeared shaky after EU diplomats said the 27-nation bloc was considering broader counter-measures against Washington.
Meanwhile, the Bank of Canada said in a survey Canadian businesses see less chance of a worst-case tariff scenario but remain cautious, while keeping hiring and investment in check.
In corporate news, Alimentation Couche-Tard said on Monday it was resuming its share repurchase program days after the Circle K-parent scrapped a $46-billion attempt to buy Japan's Seven & I
ON BAYSTREET
The TSX Venture Exchange gained 5.05 points Monday to 802.80.
ON WALLSTREET
Stock futures were little changed Tuesday, a day after the S&P 500 and NASDAQ Composite hit fresh records.
Futures for the Dow Jones Industrials retreated 71 points, or 0.2%, to 44,476.
Futures for the S&P 500 lost three points, or 0.1%, to 6,341.75.
Futures for the NASDAQ dipped 33 points, or 0.2%, to 23,309.
In the previous session, the S&P 500 rose about 0.1% and the NASDAQ advanced nearly 0.4%. Both indexes hit new all-time intraday highs and closed at records, aided by a pre-earnings jump in Alphabet. The Dow underperformed and ended the day marginally lower.
Investors are turning to a big week for second-quarter financial results. So far, more than 60 S&P 500 companies have reported, with more than 85% of those topping analysts’ estimates, according to FactSet data. Eyes are on commentary from companies about macroeconomic certainty, the impact of tariffs and details on demand and spending related to artificial intelligence.
Philip Morris International, Coca-Cola and Lockheed Martin are just a few of the companies on deck to report earnings results on Tuesday.
Google parent Alphabet and Tesla will report Wednesday, kicking off highly anticipated results from the “Magnificent Seven” companies. The mega-cap tech companies are expected to contribute to a significant amount of earnings growth this season.
In Japan, the Nikkei 225 index inched back 0.1% Tuesday, while in Hong Kong, the Hang Seng tacked on 0.5%
Oil prices gave back 57 cents to $66.67 U.S. a barrel.
Gold prices retreated 8.3 points to $3,398.10 U.S. an ounce.
