TSX Up, Only Slightly
Canada's main stock index opened subdued on Wednesday, pulling back from a record high hit in the previous session, as investors awaited trade-related developments and chip giant Nvidia's quarterly results later in the day.
The TSX Composite Index nosed ahead 17.5 points to Tuesday’s all-time high, to begin Wednesday’s session at 26,286.50.
The TSX is set for a robust monthly gain, as easing global trade concerns boosted risk appetite.
For its part, Nvidia is expected to report a 66.2% surge in first-quarter revenue, according to data compiled by LSEG; investors will be scrutinizing the AI bellwether's spending levels.
The Canadian dollar faded 0.16 cents to 72.25 cents U.S.
Definity Financial Corporation has agreed to acquire most of Travelers Canada for $3.3 billion, making it the fourth largest property and casualty insurer in Canada. Definity shares closed Tuesday at $69.41.
ON BAYSTREET
The TSX Venture Exchange dropped 0.2 points to open the mid-week session at 702.71.
All but three of the 12 TSX subgroups were in the green, led by real-estate, up 2.7%, while consumer staples captured 2.3%, and health-care was better by 1.8%.
The three laggards proved to be gold, down 0.8%, energy, sliding 0.1%, and materials faded 0.02%.
ON WALLSTREET
Stocks were about flat on Wednesday as investors parsed the latest earnings reports while awaiting Federal Reserve meeting minutes and Nvidia’s quarterly figures.
The Dow Jones Industrials tacked on 45.95 points to begin Wednesday at 42,389.60.
The S&P 500 edged higher 5.19 points to 5,926.73
The NASDAQ Composite inched better 3.43 points to 19,202.59.
Okta shares plunged 11% after the identity management software company kept its guidance due to macroeconomic uncertainty. On the other hand, Abercrombie & Fitch gained more than 31% and Macy’s climbed more than 1%, following better-than expected quarterly reports.
Nvidia is set to report earnings after the bell. Investors will be paying close attention to what China restrictions will mean for the artificial intelligence chipmaker, which sees no slowing in demand for its graphics processors. Shares were little changed during the session.
At 2 p.m. ET, the Fed is expected to release the minutes from its May meeting. Wall Street will look for clues into how central bank officials are thinking through monetary policy at a time of greater macroeconomic uncertainty.
Investors are coming off a strong session. The 30-stock Dow rallied more than 700 points, or about 1.8%, while the S&P 500 rose 2%, each ending a four-day losing streak. The NASDAQ Composite advanced roughly 2.5%.
Those moves come after President Donald Trump on Sunday said that he would delay a 50% tariff on the European Union to July 9, after initially saying Friday that he was “not looking for a deal.” This added to investors’ hopes the stock market can leave the worst of the tariff chaos behind.
Prices for the 10-year Treasury sagged to open Wednesday, boosting yields to 4.48% from Tuesday’s 4.44%. Treasury prices and yields move in opposite directions.
Oil prices rebounded $1.03 to $61.92 U.S. a barrel.
Prices for gold edged up two dollars to $3,302.40.
