Futures Follow Global Stocks Downward

First Quantum in Focus


Futures for Canada's main stock index fell on Tuesday, mirroring the downbeat mood in global markets and weighed by weaker bullion as U.S. Treasury yields jumped, although losses were limited by higher oil prices.

The S&P/TSX Composite climbed 179.89 points to conclude Monday at 21.537.45

The Canadian dollar gathered 0.34 cents to 79.93 cents U.S.

March futures plunged 0.8% Tuesday.

First Quantum Minerals’ Panamanian unit has agreed with that country’s government to increase royalty payments at its flagship copper mine.

RBC cut the rating on Andlauer Healthcare Group to sector perform from outperform.

Canaccord Genuity decreased the price target on Cogeco Communications to $120.00 from $130.00.

National Bank of Canada raised the price target on Gildan Activewear to $59.00 from $58.00

On the macroeconomic front, Canada Mortgage and Housing Corporation declared housing starts totalled 260,567 units in December, down from 267,606 units in November.

ON BAYSTREET

The TSX Venture Exchange muscled up 6.72 points Monday to 909.71.

ON WALLSTREET

U.S. stock futures fell sharply Tuesday after Goldman Sachs reported disappointing earnings and as government bond yields hit COVID-era highs.

Futures for the Dow Jones Industrials tumbled 288 points, or 0.8%, to 35,508.

Futures for the S&P 500 backpedaled 45 points, or 1%, to 4,609.75.

Futures for the NASDAQ fell 253 points, or 1.6%, to 15,342.75.

Markets south of the border were closed Monday for Martin Luther King Day.

Goldman Sachs shares ticked nearly 4% lower in pre-market trading on Tuesday after the bank missed analysts’ expectations for its fourth-quarter earnings. Goldman’s operating expenses surged 23% on increased pay for Wall Street employees.

The shortened trading week will feature quarterly reports from 35 companies in the S&P 500, including Bank of America, UnitedHealth and Netflix.

Major banks Wells Fargo, JPMorgan Chase and Citigroup kicked off the earnings season on Friday, with the three companies posting better-than-expected profits. However, the market’s reaction to those results was mixed. Wells Fargo shares posted a gain on the back of those results, but JPMorgan Chase and Citigroup slid.

Overall, 26 S&P 500 companies have reported calendar fourth-quarter earnings thus far. Of those companies, nearly 77% posted bottom-line results that beat analyst expectations.

In early action Tuesday, Gap shares fell 4.3% after Morgan Stanley downgraded the retailer. Yum! Brands was off 4% and Tesla dropped 2.7%.

Rates rose along the yield curve, with the benchmark 10-year note hitting 1.83%, its highest since January 2020.

Overseas, in Japan, the Nikkei 225 listed lower 0.3%, Tuesday while the Hang Seng in Hong Kong declined 0.4%.

Oil prices jumped $1.52 to $85.34 U.S. a barrel.

Gold prices dipped $10.60 to $1,805.90 U.S. an ounce.