Futures Unchanged on Trump Fed Visit

Futures tied to Canada’s main stock index were flat on Thursday as investors awaited updates on U.S. trade negotiations ahead of the August 1 deadline and assessed a surprise visit to the Federal Reserve by U.S. President Donald Trump.

The TSX Composite Index came off its highs of the day, but still managed to hang onto 51 points to conclude Wednesday at 27,415.43.

Futures were unchanged Thursday.

The Canadian dollar dipped 0.05 cents to 73.46 cents U.S.

Investors continued to monitor tariff-related developments after Japan reached a deal with the United States, while two European Union diplomats indicated the bloc was moving toward a trade agreement with Washington.

Meanwhile, Trump, who has frequently criticized Fed Chair Jerome Powell for not cutting interest rates more frequently will visit the central bank on Thursday, ahead of next week's meeting where rates are widely expected to be kept steady.

With corporate earnings underway, Teck Resources reportedly beat second-quarter profit estimates on improved profitability at its Trail operations.

Economically speaking, Statistics Canada reports retail sales decreased 1.1% to $69.2 billion in May.

The agency also says sales were down in three of nine subsectors and were led by decreases at motor vehicle and parts dealers.

ON BAYSTREET

The TSX Venture Exchange reversed 1.9 points to close Wednesday at 804.48.

ON WALLSTREET

S&P 500 futures were little changed early Thursday as Big Tech companies reported a mixed bag of earnings Wednesday and investors again turned their attention to the ongoing feud between President Donald Trump and the Federal Reserve.

Futures for the Dow Jones Industrials reversed 192 points, or 0.4%, to 45,022.

Futures for the much-broader index acquired 3.25 points, or 0.1%, to 6,399.50.

Futures for the NASDAQ gained 66 points, or 0.3%, to 23,376.75.

Magnificent Seven megacap stocks Alphabet and Tesla reported their earnings after Wednesday’s bell.

Alphabet rose almost 4% after posting a second-quarter earnings and revenue beat, while Tesla was last down about 6% in volatile trading after investors were disappointed by a drop in auto revenue for the second straight quarter. IBM shares slipped nearly 6%, weighing on Dow futures, after the company’s second quarter software revenue missed expectations.

On the political front, the White House said that President Donald Trump will visit the Federal Reserve on Thursday, escalating his pressure campaign against Chairman Jerome Powell.

This is the first time in nearly two decades that an American president will be making an official trip to the central bank.

In Japan, the Nikkei 225 index gathered 1.6% Thursday, while in Hong Kong, the Hang Seng gained 0.5%

Oil prices picked up 65 cents to $65.90 U.S. a barrel.

Gold prices slid $27.60 to $3,370 U.S. an ounce.