Stocks stepped back from initial gains Tuesday, after the country's economy recorded its biggest rise in a year in May.
The S&P/TSX Composite Index lopped off 9.51 points to kick off Tuesday trading at 16,335.96
The Canadian dollar dipped 0.04 cents at 76.71 cents U.S.
WestJet Airlines reported a smaller-than-expected loss on Tuesday as it flew more full planes and improved a key revenue metric, offsetting a steep rise in aviation fuel prices.
WestJet shares were grounded $1.71, or 8.6%, to $18.24.
The Keystone XL crude oil pipeline project cleared a hurdle on Monday as the Trump administration said in a draft environmental assessment that an alternative route through Nebraska would not do major harm to water and wildlife.
Kinder Morgan, the stock usually associated with Keystone, forfeited a dime to $16.40.
First Quantum Minerals said on Monday it had extended its hedging program for copper sales, as trade war worries push prices lower despite "excess demand" for its production. First Quantum shares gained 87 cents, or 4.6%, to $20.00
CIBC raised the price target on Capital Power to $29.00 from $28.00. Capital Power faded 18 cents, or 2%, to $8.66.
CIBC raised the rating on Lundin Mining to outperformer from neutral. Lundin shares gained 20 cents, or 2.8%, to $7.25.
Berenberg raised the price target on Thomson Reuters to $45.00 from $42.00. Thomson shares dipped six cents to $53.94.
On the economic front, Statistics Canada reported real gross domestic product was up 0.5% in May, after increasing 0.1% in April. In all, 19 of 20 industrial sectors registered increases.
The agency’s industrial product price index rose 0.5% in June, primarily as a result of higher prices for primary non-ferrous metal products and motorized and recreational vehicles.
StatsCan’s raw materials product index also rose 0.5%, mainly on the strength of higher prices for animals and animal products and metal ores, concentrates and scrap.
ON BAYSTREET
The TSX Venture Exchange lost 0.19 points to 705.76
The 12 subgroups were evenly divided in the first hour, as materials advanced 0.7%, while gold and industrials gained 0.2% each.
The half-dozen laggards were co-weighed by energy and utilities, each off 0.5%, while consumer staples retreated 0.4%.
ON WALLSTREET
Stocks opened higher on Tuesday after report said the U.S. and China are seeking talks to defuse an escalating trade conflict between the two countries.
The Dow Jones Industrials gained 118.32 points at 25,425.15, with 3M and Boeing as the best-performing stocks in the index.
The S&P 500 stepped forward 9.68 points to 2,812.28, as industrials rose 1%.
The NASDAQ regained 8.99 points to 7,638.99.
Shares of big exporters Boeing and Caterpillar jumped more than 1% on the report. Deere's stock also gained nearly 2%.
Equities also got a boost from tech shares. The sector rose 0.8% as it tried to rebound from a three-day rout. Shares of Facebook, Amazon, Apple, Netflix, Google-parent Alphabet and Twitter all traded higher.
Tech has lost 5.4% over the past three sessions after mixed results from some of the largest companies in the sector. Last week, Facebook reported weaker-than-expected revenue and disappointing global daily active users, a key metric for the company. Twitter, meanwhile, posted fewer-than-expected monthly users for the previous quarter.
These results have led some investors to lose faith in the so-called FANG trade, which is responsible for the lion's share of the S&P 500's gains this year.
The corporate earnings season continued on Tuesday with Dow-components Procter & Gamble and Pfizer reporting better-than-expected earnings. Shares of Procter were flat, while Pfizer's stock gained half a percent.
Apple, another Dow component, is scheduled to report Tuesday after the close.
Nearly 60% of the S&P 500 has released its quarterly results, with 78% of those companies posting better-than-expected earnings
The Federal Reserve started a two-day monetary policy meeting on Tuesday, with an announcement scheduled for Wednesday. Investors are not expecting a rise in interest rates, however, but discussion on trade or where the Federal Reserve is thinking of heading could be talked about.
Media reports have it that the world's largest economies are trying to restart talks in order to avoid a full -blown trade war. The report said Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are talking privately about the matter.
Prices for the benchmark for the 10-year U.S. Treasury went higher, lowering yields to 2.96% from Monday’s 2.98%. Treasury prices and yields move in opposite directions.
Oil prices were down $1.19 to $68.94 U.S. a barrel.
Gold prices erased a dollar to $1,230.50 U.S. an ounce.
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