Futures Promise Big Jump for TSX

Home Depot Jumps on Earnings

Futures for Canada's main stock index rose on Tuesday, aided by gains in crude and bullion prices, although concerns around soaring inflation and a global slowdown capped their rise.

The S&P/TSX triumphed 106.6 points to close Monday at 20,206.41

June futures hiked 0.9% Tuesday.

The Canadian dollar climbed 0.18 cents to 77.99 cents U.S.

RBC raised the target price on Emera Inc. to $72.00 from $66.00

CIBC cut the target price on Royal Bank of Canada to $146.00 from $149.00

CIBC cuts target price on Toronto-Dominion Bank to $100.00 from $103.00

On the economic slate, Statistics Canada reported foreign investors acquired $46.9 billion of Canadian securities in March, the largest investment since April 2020.

At the same time, Canadian investors reduced their holdings of foreign securities by $24.0 billion, following a $9.9-billion divestment in February.

Meanwhile, Canada Mortgage and Housing Corporation reported housing starts spiked 8% over a month earlier to 267,330 units in April above market expectations of 246,400 units.

CHMC also said urban starts surged by 10% to 245,324 units in April, as multi-unit urban starts climbed by 14% to 178,092 units and single-detached urban starts increased by 1% to 67,232 units

ON BAYSTREET

The TSX Venture Exchange emerged ahead 3.89 points to 700.54.

ON WALLSTREET

U.S. stock futures were sharply higher on Tuesday morning as the market tried to bounce after a punishing bear market for the tech-heavy NASDAQ and a 19% pullback for the S&P 500.

Futures for the Dow Jones Industrials gained 381 points, or 1.2%, to 32,540

Futures for the S&P 500 popped 61.5 points, or 1.5%, to 4,066.

Futures for the NASDAQ Composite Index leaped 236.50 points, or 1.9%, to 12,481.25.

Those gains come on the back of several big movers in Tuesday pre-market trading. Citigroup shares jumped 5% in premarket trading after a filing revealed Monday evening that Warren Buffett’s Berkshire Hathaway added a near-$3-billon stake in the struggling bank in the first quarter.

Citi shares have underperformed the rest of the financial sector in the past 12 months, down nearly 40% while the Financial Select Sector SPDR Fund is off by 12% over the same period.

Other bank stocks climbed higher on the Citi news. Shares of Bank of America and JPMorgan Chase rose 1% in pre-market trading.

Travel stocks popped in the premarket after United Airlines raised its revenue outlook for the second quarter on improved consumer demand. United Airlines’ stock price rose 4%, Delta’s jumped 3% and American Airlines’ jumped 3%.

Home Depot shares rose more than 3% in the premarket after the home improvement retailer posted better-than-expected quarterly results. The company also raised its full-year outlook.

Semiconductor stocks climbed higher in pre-market trading. Shares of Advanced Micro Devices jumped more than 3% following an upgrade from Piper Sandler, which said the stock looked attractive after falling 34.5% this year. Nvidia’s stock price rose 3%, Qualcomm’s jumped 2.4% and Micron Technology’s rose 2%.

Investors were also watching out for retail sales numbers hitting at 8:30 a.m. ET. Those figures will give a clue as to how well the consumer is faring with surging U.S. inflation that has prompted the Federal Reserve to tighten monetary policy.

In Japan, the Nikkei 225 gathered 0.4% Tuesday. In Hong Kong, the Hang Seng spiked 3.3%.

Oil prices picked up $1.14 to $115.34 U.S. a barrel.

Gold prices hiked $19.90 to $1,833.90 U.S. an ounce.