Canada's main stock index opened lower on Tuesday, hurt by losses in materials shares, while investors awaited manufacturing data from the U.S. and Canada hoping for more cues that would bolster bets for an end to interest rate hikes.
The TSX dived 94.09 points mid-morning Tuesday at 20,532.55.
The Canadian dollar fell 0.6 cents to 75.21 cents U.S.
Strathcona Resources said on Tuesday it would go public by acquiring smaller rival Pipestone Energy in an all-stock deal that would value the combined business at $8.6 billion. Pipestone shares plunged 30 cents, or 11%, to $2.42.
A bunch of Canada's energy and real estate companies are set to report quarterly earnings later in the day.
On the economic calendar, the Global S&P Manufacturing PMI rose to 49.6, from 48.8 in June, but the headline index pointed to the slowest deterioration in operating conditions in the current contractionary sequence.
A dock workers' union on Canada's West Coast and port employers have provisionally agreed to a new labour contract, averting an immediate strike, diminishing worries of supply-chain constraints and inflation.
ON BAYSTREET
The TSX Venture Exchange turned downward 3.32 points, to 624.20.
Eight of the 12 TSX subgroups declined, with health-care falling 2.4%, gold down 1.9%, and materials stumbling 1.4%.
The four gainers were led by industrials, up 0.5%, while consumer discretionary and communications each nosed ahead 0.2%.
ON WALLSTREET
The S&P 500 fell to start August as investors navigated a flood of corporate earnings reports.
The Dow Jones Industrials fought their way 26.6 points higher to commence trading Tuesday at 35,586.13
The S&P 500 Index slumped 12.31 points to 4,576.65.
The NASDAQ index shed 55.03 points to 14,291.
Pharmaceutical giant Merck reported a smaller-than-expected loss and revenue that exceeded expectations thanks to strong Keytruda sales. Merck shares rose 1.6%. Caterpillar also reported better-than-expected earnings and revenue, boosting shares 7%.
Pfizer added 1.7% even after posting mixed results due to plummeting COVID product sales, while Uber lost nearly 5% on mixed earnings.
This week marks the busiest stretch of second-quarter earnings with more than 160 S&P 500 constituents slated to report results. More than half of the companies in the broad market index have already reported, with 82% topping earnings expectations, according to FactSet.
This has fueled some hopes that the economy will be able to avoid a recession as inflation shows signs of cooling.
Despite the performance so far, analysts are bracing for a 7.1% earnings decline from a year
Prices for the 10-year Treasury tumbled, raising yields to 4.03% from Monday’s 3.96%. Treasury prices and yields move in opposite directions.
Oil prices sank 78 cents to $81.02 U.S. a barrel.
Gold prices darkened $24.80 to $1,984.40 U.S. an ounce.
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