TSX Awaits BoC Word

Banks Out with Earnings

Futures for Canada's main stock index slipped on Wednesday, with investors expecting the central bank to announce a further tapering of its asset purchases later in the day.

TSX Composite index advanced 37.57 points to close Tuesday at 20,270.65

The Canadian dollar tacked 0.21 cents Wednesday to 80.08 cents U.S.

September futures dipped 0.1% Wednesday.

South Africa's AngloGold Ashanti said it had offered to buy all the shares it does not already own in Canadian bullion miner Corvus Gold as it seeks to expand its ore reserves.

Royal Dutch Shell said it plans to build a large-scale carbon capture and storage project near Edmonton joining a number of other companies proposing clean energy initiatives in Canada's main oil-producing province.

Anaergia Inc Scotiabank initiates coverage on Anaergia Inc with a sector outperform rating

Canaccord Genuity raised the rating on Corvus Gold Inc to buy from hold.

Canaccord Genuity initiated coverage with buy rating

CIBC cut the rating to neutral from outperform.

The Bank of Canada will taper its asset purchases again this morning, encouraged by robust growth prospects, according to a Reuters poll of economists. The policy decision is due at 10:00 a.m. ET.

ON BAYSTREET

The TSX Venture Exchange added 2.69 points Tuesday to 941.62.

ON WALLSTREET

U.S. stock index futures were little changed on Wednesday as investors assessed a rush of second-quarter earnings results from big banks and other major companies.

Futures for the Dow Jones Industrials picked 13 points to 34,789.

Futures for the S&P 500 acquired 4.5 points, or 0.1%, to 4,365.75.

Futures for the NASDAQ Composite Index raced 56.25 points, or 0.4%, to 14,921.25.

Second-quarter earnings reporting season continued Wednesday with several companies posting earnings before the bell.

Bank of America shares fell about 2% in pre-market trading after it reported second-quarter revenue of $21.6 billion, just under the $21.8 billion estimate from Refinitiv. Low interest rates knocked net interest income by 6%, the bank said.

Blackrock, the largest asset manager in the world, reported earnings and revenue that topped expectations on Wednesday morning. Shares were down more than 1% in pre-market trading.

Delta Air Lines shares gained in the pre-market after reporting its first quarterly profit of $652 million since 2019, boosted by federal aid.
The airline also said domestic leisure demand has fully recovered and corporate travel increased in the quarter.

In total, 23 S&P 500 companies will post quarterly results this week and second-quarter results are supposed to show a sizable comeback from the depths of the pandemic. Profit growth is expected to total 64% year-over-year for the quarter, according to analyst estimates collected by FactSet.

American Airlines shares gained roughly 3% in the pre-market after the carrier forecast better revenue and a narrower loss than its previous estimate for the second quarter. The company is set to report quarterly fiscal results on July 22.

UBS raised its December 2021 S&P 500 target to 4,500 on Tuesday, up from a prior forecast of 4,400. The call hinges on strong numbers from second-quarter earnings.

Meanwhile, Apple shares gained in the pre-market. Bloomberg reported Wednesday night that Apple is looking to increase new iPhone production for 2021 by 20%. JPMorgan also added the tech giant to its focus list. The firm raised its price target for Apple and believes the stock can gain 20% in the next 12 months.

Investors await Federal Reserve Chairman Jerome Powell’s required semiannual testimony before Congress. Powell is set to speak before the House Committee on Financial Services at noon ET. He has the difficult task of convincing Congress that the central bank’s easy policies are still appropriate amid the highest inflation readings in years.

The reading on producer prices is due on Wednesday with economists expecting a 0.6% increase month over month, according to Dow Jones.

Overseas, in Japan, the Nikkei 225 stepped back 0.4% Wednesday, while in Hong Kong, the Hang Seng index lost 0.6%.

Oil prices faded 40 cents to $74.85 U.S. a barrel.

Gold prices hiked $7.40 to $1,817.30 U.S. a pound.