TSX Stumbles by Noon
Canada's main stock index 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 176.46 points to pause for noon EDT at 28,156.67
The Canadian dollar nipped lower 0.02 cents to 72.29 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 0.18 points to 803.43.
All but one of the 12 TSX subgroups lost ground as morning became afternoon, weighed most by health-care, off 1.1%, industrials, down 1%, financials, which shed 0.9%
Only gold registered higher, and only 0.03% at that.
ON WALLSTREET
The S&P 500 fell on Monday as investors looked ahead to Nvidia earnings later in the week.
The Dow Jones Industrials stumbled 235.82 points to move into noon hour Monday at 45,397.02
The broader index dipped two points to 6,454.91.
The NASDAQ gained 73.02 points to 21,569.67.
Nvidia shares were around 2% higher. The artificial intelligence chip darling received a number of positive endorsements from analysts heading into its earnings report after the bell Wednesday.
Additionally, Intel shares jumped more than 1%, extending their gains from the previous session, 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.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 $1.23 to $64.89 U.S. a barrel.
Gold prices skidded 70 cents at $3,417.80 U.S. an ounce.
