Canada's main equity index traded in ther red midday Tuesday led by declines in cannabis stocks while precious metal miners and gold stocks edged higher.
Cannabis producers Canopy Growth, Aurora Cannabis and Aphria fell between 6 percent and 8 percent and were the biggest decliners on the TSX.
The S&P/TSX Composite Index dipped 107.11 points at 16,337.28.
Canada’s top trade negotiator will join her Mexican and U.S. counterparts in Washington on Tuesday in a bid to remain part of a trilateral North American trade pact, as U.S. officials expressed optimism a NAFTA deal could be reached this week.
In earnings news -- Bank of Montreal reported third-quarter earnings that were ahead of market expectations, helped by growth in the United States. BMO, Canada’s fourth-biggest lender, said earnings per share, excluding one-off items, rose 16 percent to C$2.36 in the quarter ended July 31, compared with the average analyst forecast of C$2.27, according to Thomson Reuters I/B/E/S.
The Canadian dollar strengthened to a nearly three-month high against its U.S. counterpart on Tuesday on the prospect of Canada reaching a deal this week to overhaul the North American Free Trade Agreement.
The Canadian dollar was trading 0.5 percent higher at 77.50 U.S. cents.
Gold prices were lower on Tuesday as trade tensions between the U.S. and China lingered. Comex gold futures for December delivery fell 0.16% to $1,214.10 a troy ounce.
ON BAYSTREET
The TSX Venture Exchange strengthened 5.07 points to 711.57.
Two of the subgroups were higher midday with base metals up 0.40% and real estate stocks up 0.02 percent.
On the downside - health-care issues sank 6.92%, consumer staples stocks dipped 1.20% and gold stocks shed 0.86 percent.
ON WALLSTREET
Stocks turned mixed on Tuesday, Aug. 28, but not before the S&P 500 crossed 2,900 for the first time and set an intraday record high as Wall Street reacted to news of a possible NAFTA overhaul that could lead to the end of trade disputes between the U.S., China and the European Union.
The Dow Jones Industrial Average was up 24 points, or 0.1%, to 26,074, the S&P 500 traded flat and the Nasdaq gained 0.04%. The Dow on Monday, Aug. 27, rose 259 points, or 1.01%, to close at 26,049. The S&P 500 rose 0.77% to 2896.74, its second record high in as many trading days. The Nasdaq gained 0.91% on Monday to end at 8,017.90, also a record.
Donald Trump announced a new agreement on trade Monday with Mexico that will both replace the current NAFTA pact - which covers an annual $1 trillion in trade - and leave Canada, the U.S.'s second-largest trading partner, without a bespoke deal.
Stocks also got a boost earlier in the trading day from a surge in the consumer confidence index, which jumped to 133.4 in August, an 18-year high.
Best Buy Co. (BBY) reported fiscal second-quarter earnings of 91 cents a share, topping analysts' forecasts by 8 cents. Sales of $9.38 billion also topped estimates, and a same-store sales increase of 6.2% beat expectations of 4.2%. The company's third-quarter adjusted earnings estimate of 79 cents to 84 cents came in below forecasts of 92 cents, and the stock tumbled 6.8%.
U.S. oil futures pulled back on Tuesday after two sessions of consecutive gains, but held ground near three-week highs as traders fret over signs of receding output and brace for the latest weekly U.S. crude inventory data. West Texas Intermediate crude for October delivery on the New York Mercantile Exchange shed 23 cents, or 0.3%, to $68.64 a barrel.
Treasurys saw some selling, pushing yields higher, amid reports that Germany was contemplating extending financial aid to embattled Turkey, which is in the throes of currency crisis. The 10-year Treasury yield rose 2.3 basis points to 2.873%, while the 30-year bond yield picked up 2.6 basis points to 3.022%. The 2-year note rate was up 0.5 basis point to 2.657%.
Related Stories
