TSX Tip-Toes Higher in First Hour

Walmart, Home Depot in Focus

Canada's main stock index edged higher on Tuesday after data showed inflation eased slightly in July, while energy stocks rebounded after a selloff in the previous session on global slowdown worries.

The TSX collected 25.41 points to commence trading Tuesday at 20,180.60.

The Canadian dollar advanced 22 cents to 77.70 cents U.S.

On the economic front, Statistics Canada reported foreign investors reduced their holdings of Canadian securities by $17.5 billion in June, the largest divestment since December 2018.

At the same time, Canadian investors reduced their holdings of foreign securities by $12.3 billion, following a small investment in May.
Elsewhere, the Consumer Price Index (CPI) rose 7.6% on a year-over-year basis in July, down from an 8.1% gain in June. On a seasonally adjusted monthly basis, the CPI increased 0.3% in July.

ON BAYSTREET

The TSX Venture Exchange faded 3.89 points to 674.61.

The 12 TSX subgroups were evenly split in the first hour, with energy rumbling 1.8%, while consumer staples and communications each forged ahead 0.4%.

The half-dozen laggards were weighed most by health-care, tumbling 2.6%, information technology, doffing 2.1%, and gold, dulling 1%.


ON WALLSTREET

The S&P 500 slipped Tuesday as traders assessed earnings results from Walmart and Home Depot and looked ahead to more big retail reports.

The Dow Jones Industrials gained 74.95 points to kick off Tuesday at 33,987.38.

The S&P 500 dipped 10.17 points to 4,286.97.

The NASDAQ Composite slumped 104.33 points, or to 13,023.73.

Walmart reported earnings per share that beat analyst expectations and stuck with its second-half outlook, which sent the stock up 5%. Home Depot reported earnings that beat expectations and maintained its 2022 guidance.

Retail earnings continue with reports from Target and Lowe’s due out Wednesday.

Elsewhere, shares of ZipRecruiter slipped 7% after the company lowered its revenue outlook.

Wall Street is coming off a solid session, with the major averages all rising Monday after a sharp intraday turnaround. The move higher built on the market’s rally off a June low.

Treasury prices were down, raising yields to 2.87% from Monday’s 2.80%. Treasury prices and yields move in opposite direction.

Oil prices lost 25 cents to $89.16 U.S. a barrel.

Gold prices fell $7.80 to $1,790.30 U.S. an ounce.

Markets Subside on Retail Earnings