Futures Slip Ahead of Budget

Banks in Focus

Canadian stock futures edged lower on Tuesday ahead of the government unveiling its federal budget and U.S. Federal Reserve Chairman Jerome Powell's first congressional testimony.

The S&P/TSX Composite Index gathered 76.21 points to close Monday at 15,714.66

The Canadian dollar slipped 0.2 cents to 78.63 cents U.S. Tuesday morning.

March futures were down 0.1% Tuesday.

Bank of Nova Scotia reported first-quarter earnings that were ahead of market expectations, helped by a strong performance at its domestic and international businesses.

Bank of Montreal reported first-quarter earnings which were ahead of market expectations, reflecting strong sales growth in Canada and the United States.

JetBlue Airways met with Bombardier and also had plans to meet with Brazil's Embraer SA this month, according to an internal email reviewed by Reuters, in a signal that talks are picking up for the U.S. airline's closely watched sales campaign.

Eight Capital cut the target price on Lundin Gold to $6.90 from $7.30

Barclays cut the target price on George Weston to $108 from $113

TD Securities cut the target price on Prairiesky Royalty to $33 from $34

Federal Finance Minister Bill Morneau is expected to unveil a restrained budget, with just enough spending to assuage middle class voters under pressure from rising rates - while keeping his powder dry amid uncertainty over the North American Free Trade Agreement.

Investor's focus will also be on Powell when he faces questions from both houses of the U.S. Congress in a semi-annual testimony starting Tuesday, his first major set piece since he took over from Janet Yellen earlier this month.


The TSX Venture Exchange stayed afloat 0.78 points Monday to 826.87


U.S. stock index futures fluctuated ahead of Tuesday's open, showing signs of pulling back from the previous session's highs.

Futures for the Dow Jones Industrial Average faded 34 points, or 0.1%, to 25,724

S&P 500 futures dipped 4.25 points, or 0.2%, to 2,780.25, while futures on the NASDAQ Composite dropped 8.75 points, or 0.1%, to 6,991.25

Looking to Tuesday's session, earnings, data and news from the U.S central bank are due to shake up sentiment.

Express Scripts Holding Company is among the companies reporting earnings today

On the data front, durable goods and advanced economic indicators come out at 8:30 a.m. ET, followed by the S&P/Case-Shiller House Price Index and the FHFA House Price Index, both due at 9 a.m. ET.

Shortly after that, consumer confidence comes out at 10 a.m. ET as well as the Richmond Fed manufacturing activity survey, while the Dallas Fed's Texas Service Sector Outlook Survey comes out at 10:30 a.m. ET.

Looking to the central banking space, recently-appointed Chair of the U.S. Federal Reserve, Jerome Powell is set to address Congress on Tuesday morning, where the former Fed governor is set to shed some light on the current state of the U.S. economy, and monetary policy.

Investors anticipated prepared remarks from the Fed chief at 8:30 a.m. ET.

Overseas, in Japan, the Nikkei 225 hoisted 1.1%, while in Hong Kong, the Hang Seng Index declined 0.7%

Oil prices moved lower 25 cents to $63.66 U.S. per barrel.

Gold prices slumped $2.10 to $1,330.70 U.S. an ounce.