Canada's main stock index futures slid on Tuesday as U.S. oil futures continued to trade in the negative after their first ever sub-zero dive on Monday, furthering concerns of a global recession in the coming months.
The S&P/TSX Composite Index picked up 28.4 points to end Monday at 14,388.28.
The Canadian dollar collapsed 0.49 cents early Tuesday to 70.32 cents U.S.
June futures capsized 1.7% Tuesday.
Teck Resources Ltd, reported a much bigger-than-expected 84% plunge in quarterly profit, hit by shutdowns due to the coronavirus outbreak and weak performance in its energy unit.
Enbridge said on Monday it would not ration capacity for May on North America's biggest oil pipeline network, as Canada's oil producers deepen production cuts to cope with low prices and weak demand.
JP Morgan raised the target price on Fortis to $57.00 from $55.00
CIBC cut the target price on Linamar to $40.00 from $43.00
RBC cut the rating on Stingray Group to sector perform from outperform
Economically speaking, Statistics Canada said retail sales rose for the fourth consecutive month, up 0.3% to $52.2 billion in February.
ON BAYSTREET
The TSX Venture Exchange ended lower 0.11 points Monday to 444.76.
ON WALLSTREET
Stock futures pointed to big losses for a second day on Tuesday as oil prices continued their unprecedented wipeout.
Futures for Dow Jones Industrials lost 567 points, or 2.4%, early Tuesday to 22,921.
Futures for the S&P 500 fell 53.25 points, or 1.9%, at 2,753.25
Futures for the NASDAQ Composite decreased 92.75 points, on 1.1%, to 8,599.25.
Traders were focused on the strange happenings with oil futures once again, which raised concern about deep losses for the energy industry hitting the U.S. economy even further. On Monday, the May contract for oil futures expiring Tuesday fell to zero and then went to an actual negative price, meaning producers would pay for someone to take the oil off their hands.
The bizarre move has to do with the fact that because of the coroanvirus shutdowns, big buyers of oil like refineries don’t need any more oil because their tanks are nearly filled.
Major oil stocks like Exxon Mobil were hit again in premarket trading. Exxon was down 4%.
Not helping sentiment were shares of IBM, which slipped 3.7% in premarket trading after the company reported a 3.4% decline in revenue in the first quarter from a year ago amid the spread of coronavirus. Coca-Cola, Netflix, and Chipotle are on deck to report earnings on Tuesday.
Earlier Monday, the Senate failed to reach a deal on the next package to rescue an economy and health care system ravaged by the global pandemic. However, a vote is set up as soon as Tuesday afternoon to replenish a key small business aid program.
Overseas, in Japan, the Nikkei 225 doffed 2% Tuesday, while in Hong Kong, the Hang Seng Index slipped 2.2%.
Oil prices stumbled $4.70 to $15.73 U.S. a barrel.
Gold prices lost $36.50 to $1,699.30 U.S. an ounce.
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