Futures Up Tuesday

Ivanhoe, Softchoice in Focus

Futures tracking Canada's commodity-heavy main stock index rose on Tuesday, boosted by gains in oil and gold prices, while the prospect of strong corporate earnings further lifted investor sentiment.

The TSX Composite gained 57.27 points by Monday’s close to 20,985.37.

The Canadian dollar added 0.29 cents to 81.10 cents U.S.

December futures rocketed 0.4% Tuesday.

On a day without macroeconomic figures to consider, London-listed Hochschild Mining said on Tuesday it would pursue a listing of its Chilean rare earth unit Aclara Resources in Toronto, as it taps new funding to step up focus on its mainstay precious metals business.

Votorantim SA, one of Brazil's biggest diversified industrial groups, has announced a plan with Canada Pension Plan to consolidate their energy assets in Brazil to create a listed integrated renewable platform, they said on Monday.

Canaccord Genuity raised the rating on Ivanhoe Mines to buy from speculative buy.

CIBC initiated coverage of Softchoice Corp. with an outperform rating

CIBC raised target price on WSP Global to $180.00 from $166.00

ON BAYSTREET

The TSX Venture Exchange eked higher 0.14 points to 937.81.

ON WALLSTREET

U.S. stock futures gained on Tuesday as major companies continued to report strong third-quarter earnings, easing concerns that persistent COVID cases and rising costs would derail corporate America’s profit recovery.

Futures for the Dow Jones Industrials sprang up 176 points, or 0.5%, to 35,313.

Futures for the S&P 500 gained 22.5 points, or 0.5%, to 4,500.

Futures for the NASDAQ Composite Index hiked 61.5 points, or 0.4%, to 15,352.

Johnson & Johnson shares gained in the premarket after the drugmaker’s third-quarter earnings beat Wall Street expectations. The company reported $2.60 in adjusted earnings per share for the third quarter, topping the consensus estimate from Refinitiv by 25 cents. Johnson &
Johnson also raised its forecast for the year.

Fifth Third Bancorp shares ticked up in early morning trading after reporting better-than-expected EPS and revenue.

Dow member Travelers saw its shares gain roughly 3% in the premarket after the insurance company’s quarterly earnings report topped expectations.

Procter & Gamble reported better-than-expected earnings, continuing the bullish trend, but the shares dipped around 1% in premarket trading. The consumer products giant said it is raising prices to cover rising commodity and freight costs and warned that inflation may continue.

Through the end of last week, 80% of S&P 500 companies that have reported beat earnings expectations, according to FactSet. Taking into account those reports and estimates for those to come, third-quarter profit growth will come in at 30%, according to FactSet.

Other major reports later Tuesday include Netflix and United Airlines.

Netflix could set the tone for technology earnings this season. Three months ago, the streaming giant forecasted paid net subscriber adds of 3.5 million, while analysts expect about 3.84 million, according to StreetAccount. Analysts are also forecasting fourth-quarter subscriber guidance of 8.5 million, which would be the highest outlook since the first quarter of 2019.

Netflix’s stock has traded lower on six of its last seven earnings releases.

Earnings from United Airlines should give investors a gauge on the travel recovery from the pandemic and Procter & Gamble earnings could show how strong the consumer is in the goods sector.

Overseas, in Japan, the Nikkei 225 gained 0.7% Tuesday, while in Hong Kong, the Hang Seng shot ahead 1.5%.

Oil prices gained $1.10 to $83.54 U.S. a barrel.

Gold prices brightened $11.90 to $1,777.60 U.S. an ounce.