TSX Slides as Rally Peters Out
Equities in Toronto slipped on Monday, kicking off a week of earnings from top domestic lenders, after U.S. Federal Reserve Chair Jerome Powell's hints about interest rate cuts propelled the market to new heights in the previous session.
The TSX Composite Index slid 99.64 points to begin the week at 28,233.49
The Canadian dollar nosed ahead 0.06 cents to 72.37 cents U.S.
Canadian banks will kick off earnings season on Tuesday, beginning with Bank of Montreal and Bank of Nova Scotia.
In Canada, second-quarter GDP numbers on Friday will be watched to gauge the impact of tariffs on the economy.
In corporate news, many Air Canada flight attendants are unhappy with wage hikes in a tentative deal, which may fail to secure union approval, Reuters reported on Friday.
ON BAYSTREET
The TSX Venture Exchange gave back 1.7 points to 801.91.
All but two of the 12 TSX subgroups lost ground in the first hour, weighed most by industrials, down 0.6%, while utilities and telecoms each shed 0.5%.
The two gainers were gold, up 0.6%, and materials, ahead 0.2%.
ON WALLSTREET
U.S. equities fell slightly on Monday after the Dow Jones Industrial Average catapulted to intraday and closing records, and as investors looked ahead to Nvidia earnings.
The 30-stock index erased 170.17 points to open Monday at 45,461.57.
The S&P 500 dipped 10.91 points to 6,456.00.
The NASDAQ inched up 7.71 points to 21,503.31.
Intel shares extended its gains Monday on the heels of Commerce Secretary Howard Lutnick revealing Friday that the U.S. government has taken a 10% stake in the chipmaker.
That could be a sign of more to come from the Trump administration, as White House economic advisor Kevin Hassett said Monday that the stake is part of broader strategy to create a sovereign wealth fund.
Nvidia, as the company is scheduled to report after the bell Wednesday. Meanwhile, Dell and Marvell will report earnings on Thursday. Those names could play a key role in determining whether the tech rally is back on or if there’s further to go in the rotation trade.
In the week ahead, traders are also looking forward to Friday’s July personal consumption expenditure price index, the Fed’s preferred inflation gauge. Economists polled by Dow Jones expect core PCE, which strips out volatile food and energy prices, will rise 2.9% on a year-over-year basis, compared to its 2.8% increase in June.
Prices for 10-year Treasury moved upward Friday, reducing yields to 4.29% from Friday’s 4.26%. Treasury prices and yields move in opposite directions.
Oil prices moved higher 88 cents to $64.54 U.S. a barrel.
Gold prices skidded 80 cents at $3,417.70 U.S. an ounce.
