Futures for stocks in Canada’s main market edged lower on Wednesday, as inflation prospects following a rally in commodity prices tempered optimism over the vaccine-led economic recovery.
The S&P/TSX Composite lost 86.65 points to finish Tuesday at 18,330.09.
The Canadian dollar notched upward 0.17 cents at 79.58 cents U.S.
March futures nicked lower 0.1% Wednesday.
Royal Bank of Canada topped analysts' estimates for first-quarter profit on Wednesday, driven by strength in its capital markets and wealth management units and lower provisions to cover potential loan losses from the COVID-19 pandemic.
Crescent Point Energy posted a higher fourth-quarter profit on Wednesday, as commodity prices rebounded from pandemic lows.
TD Securities starts coverage on AcuityAds Holdings with a buy rating and a price target of $37.00
Credit Suisse raised the rating on Bank of Montreal to outperform from neutral.
Jefferies cut the rating on Canopy Growth to underperform.
ON BAYSTREET
The TSX Venture Exchange tumbled 43.36 points, or 4%, to finish Tuesday’s session at 1,039.60.
ON WALLSTREET
S&P 500 futures inched up on early Wednesday as investors looked to see whether a late-day swing Tuesday in the market would continue.
Futures for the Dow Jones Industrials poked ahead 12 points to 31,504.
Futures for the S&P 500 forged up nine points, or 0.2%, at 3,887.
Futures for the NASDAQ Composite improved 47.25 points, or 0.2%, to 13,239.25.
The move in futures followed a wild comeback during Tuesday’s market hours that saw the Dow and S&P 500 erase sharp losses to finish modestly higher. The positive finish snapped a five-day skid for the S&P 500. The NASDAQ, which was down nearly 4% at one point, finished with a loss of just 0.5%.
Tesla shares were higher by 4% in pre-market trading after it was revealed Ark Invest’s Cathie Wood bought a ton more of her biggest holding during Tuesday’s selling. Wood bought more than $120 million worth of Tesla shares for the flagship Ark Innovation ETF, according to the firm’s website.
Bitcoin, which some view as a barometer of speculation in financial markets, rebounded back above $50,000 after more buying of the cryptocurrency from Square.
On Wednesday, the Food and Drug Administration’s staff endorsed Johnson & Johnson’s single-shot Covid-19 vaccine for emergency use, bringing in a third vaccine to the U.S.
The market’s overall rebound on Tuesday was mirrored in the moves of tech giant Apple and electric-vehicle stock Tesla, which finished with losses of 0.1% and 2.2%, respectively, after suffering much steeper losses earlier in the day. Energy stocks and financials outperformed, while tech and consumer discretionary plays lagged the broader market.
Apple was slightly lower in pre-market trading.
The rebound began after Federal Reserve Chair Jerome Powell released his prepared remarks for a hearing with the Senate Banking Committee, with the central bank chief saying that inflation was "soft" and that the U.S. economy was "a long way from our employment and inflation goals." Bond yields had perked up in recent weeks, feeding fears that the Fed might alter its dovish policy stance.
On Wednesday, Powell’s visit to Capitol Hill will continue when he addresses the House of Representatives Financial Services Committee.
Investors will also get another look at the construction industry with data on new home sales and an earnings report from Lowe’s.
Overseas, in Japan, the Nikkei 225 returned from holiday to lost 1.6%, while in Hong Kong, the Hang Seng index dumped 3%.
Oil prices picked up 39 cents to $62.06 U.S. a barrel.
Gold prices ducked $7.50 to $1,798.40 U.S.
U.S. Futures Rise After Tuesday’s Comeback
