Futures for stocks in Canada’s largest centre fell on Tuesday, dragged by weaker U.S. crude prices as surging coronavirus cases globally raised demand concerns, while falling bullion prices further dented the market sentiment.
The S&P/TSX Composite Index jumped 164.27 points, or 1%, to reach Monday’s closing bell at 16,161.33.
September futures were down 0.2% Tuesday.
The Canadian dollar skidded 0.34 cents first thing Tuesday to 74.62 cents U.S.
CIBC raised the target price on Airboss of America to $33.00 from $23.00
CIBC raised the target price on Canfor Corp. to $19.00 from $17.00
National Bank of Canada raised the price target on First National Financial to $33.00 from $29.00
ON BAYSTREET
The TSX Venture Exchange gained 17.72 points, or 2.6%, Monday to 709.11.
ON WALLSTREET
Stock futures fell slightly as traders pored over the latest batch of corporate earnings results and the GOP coronavirus relief plan.
Futures for Dow Jones Industrials slid 138 points, or 0.5%, early Tuesday, to 26,346.
Futures for the S&P 500 dipped 13 points, or 0.4%, at 3,219.25.
Futures for the NASDAQ tumbled 61.75 points, or 0.6%, to 10,613.50.
McDonald’s shares slid 2.1% in the pre-market after the fast-food giant posted a quarterly profit that missed analyst expectations along with a 30% drop in overall revenue. 3M, another Dow component, dropped 3.2% after its quarterly earnings and revenue were lower than expected.
Visa, Advanced Micro Devices, Amgen, eBay, Mondelez International and Starbucks report after the bell on Tuesday. This is the busiest week of the corporate earnings season, with about 170 companies slated to report.
Senate Majority Leader Mitch McConnell unveiled the Republican coronavirus relief plan Monday after the bell. The legislation would include relief for jobless Americans, another direct payment to individuals of up $1,200, more Paycheck Protection Program small business loan funds, among other provisions.
McConnell said the bill would set federal unemployment insurance at 70% of a worker’s previous wages, replacing the $600 per week which states stopped paying out this week.
The bill comes as coronavirus cases continue to rise across the U.S. So far, more than 4.2 million infections have been confirmed along with at least 147,303 deaths in the U.S., according to Johns Hopkins University.
Meanwhile, the Federal Reserve starts its two-day policy meeting on Tuesday, followed by an interest rate decision on Wednesday. The Federal Open Market Committee decided to maintain the target range for the federal funds rate at 0-0.25% at its last meeting in June as it continued to deal with the impact of the pandemic on the U.S. economy.
Overseas, in Japan, the Nikkei 225 shed 0.3% while in Hong Kong, the Hang Seng index gained 0.7%.
Oil prices dipped 14 cents to $41.46 U.S. a barrel.
Gold prices gave back $8.50 to $1,922.50.
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