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Equities Begin in the Red
The TSX Composite Index remained negative Tuesday 58.9 points to 22,813.75.
The Canadian dollar inched ahead 0.01 cents to 72.54 cents U.S.
September futures faltered 0.3% Wednesday.
Teck Resources beat second-quarter profit estimates, helped by higher production of copper at its Quebrada Blanca mine in Chile and an increase in copper prices.
On the economic schedule today, Statistics Canada’s new housing price index decreased by 0.2% in June as compared with May. Prices were down in 10 of the 27 census metropolitan areas surveyed in June and unchanged in 12, while prices rose in the remaining five CMAs.
The Bank of Canada is set to deliver its rate announcement (about 10 a.m.) with the smart money pointing to another quarter-point cut.
ON BAYSTREET
The TSX Venture Exchange turned around and gained 1.39 points to wrap up Tuesday at 583.44.
ON WALLSTREET
NASDAQ traded lower Wednesday as investors were underwhelmed by quarterly reports from mega-cap tech companies Alphabet and Tesla.
Futures for the Dow Jones Industrials tumbled 177 points, or 0.4%, to 40,438.
Futures for the S&P 500 index erased 46.25 points, or 0.8%, at 5,553.
Futures for the NASDAQ Composite dropped 255.75 points, or 1.3%, to 19,669.25.
Shares of Google parent company Alphabet fell 3.4% in pre-market trading. Although Alphabet reported a top and bottom line beat, YouTube advertising revenue fell below the consensus estimate. Meanwhile, Tesla shares declined more than 8% on weaker-than-expected results and a 7% year-over-year drop in auto revenue.
Those reports mark investors’ first look at how mega-cap companies fared during the second quarter. Reports from these names are of special interest to Wall Street as this small cohort is responsible for the bulk of this year’s gains.
More than 20% of the S&P 500 companies have reported their second-quarter earnings, with 80% of them topping expectations, according to FactSet data.
Wall Street is coming off a losing session, with the major averages pulling back slightly.
Investors have largely priced in the chances of the Federal Reserve cutting interest rates at its September meeting. Combined with rising confidence in a soft landing, the market has continued its rally, with rate-sensitive sectors such as small caps and industrials rising in recent weeks.
In Japan, the Nikkei 225 dipped 1.1% Wednesday, while in Hong Kong, the Hang Seng index lost 0.9%.
Oil prices gained 83 cents to $77.79 U.S. a barrel.
Gold prices fell $11.70 to $2,419.00.
