Futures on the Rise

Investors Focus on Bank Rate, AstraZeneca

CORRECTION: FIXES AUGUST HOUSING STARTS FIGURES IN CANADA

Futures rose for equity markets in this country, on Wednesday as oil prices reversed some losses, with investors shrugging off a delay in COVID-19 vaccine testing from AstraZeneca and awaiting an interest rate decision from the Bank of Canada.

The TSX lost 118.46 points to end Tuesday at 16,099.52

The Canadian dollar inched up 0.09 cents Wednesday to 75.62 cents U.S.

September futures advanced 0.8% Wednesday.

British Columbia on Tuesday ordered the closure of all nightclubs and Ontario delayed an easing of remaining restrictions imposed to fight the coronavirus pandemic, as Canada reported a spike in new COVID-19 cases.

Yogawear maker Lululemon Athletica Inc said on Tuesday it was "cautiously optimistic" about the holiday season and forecast current-quarter adjusted profit to fall as much as 20% due to higher marketing expenses.

Husky Energy said on Wednesday it would undertake a review of its West White Rose Project in the country's Atlantic region, following suspension of major construction in March due to the coronavirus outbreak.

On the economic front, Canada Mortgage and Housing Corporation reported the trend in housing starts was 213,144 units in August, up from 204,597 units in July.

Later on this morning (10 a.m. EDT) the Bank of Canada is to hand down its interest rate decision. The central bank is expected to stand pat.

ON BAYSTREET

The TSX Venture Exchange dropped 2.92 points Tuesday to 730.77.

ON WALLSTREET

U.S. stock futures rebounded on Wednesday as investors snapped up technology shares that were pummeled in the previous three sessions.

Futures for Dow Jones Industrials rebounded 210 points, or 0.8%, early Wednesday, to 27,735.

Futures for the S&P 500 gained 32.75 points, or 1%, at 3,3,68.25.

Futures for the NASDAQ Composite jumped 195.25 points, or 1,8%, to 11,255.75. The index was down more than 10% in three days from a record high, officially entering correction territory.

The NASDAQ underperformed once again on Tuesday — falling more than 4% — after suffering its worst week since March. The index is still up more than 63% from its 52-week low in March.

Shares of Tesla, which had their single worst day ever on Tuesday dropping 21%, rose 4.8% in pre-market trading Wednesday. Apple, which lost more than 6% in the previous session, rose by 2.4% in pre-market trading.

Those two stocks, along with Microsoft, Amazon, Alphabet and Facebook, lost $1 trillion in market value the last three days. All six were rebounding in premarket trading Wednesday.

The moves in the futures market came as investors shrugged off a setback with a coronavirus vaccine and disappointing earnings news.

AstraZeneca shares fell in extended trading after the company said a late-stage trial of its COVID-19 vaccine candidate has been put on hold due to a suspected serious adverse reaction in a participant in the U.K.

Shares of athletic retailer Lululemon and messaging platform Slack fell in after-hours trading on Tuesday, despite both companies reporting better-than-expected earnings.

The selloff in technology shares worsened on Tuesday as investors rotated out of companies that led the market’s historic comeback from the coronavirus recession.

The U.S. Labor Department’s Job Openings Labor Turnover Survey for July will be released at 10 a.m. ET on Wednesday and the report —although somewhat dated — should give investors some insight into the labor market. Analysts polled by Dow Jones expect hiring rose 6.0 million in July, up from 5.9 million in June.

Overseas, in Japan, the Nikkei 225 fell back 1% Wednesday, while in Hong Kong, the Hang Seng index sagged 0.6%.

Oil prices hiked 73 cents to $37.49 U.S. a barrel.

Gold prices slid $9.40 to $1,933.80.