Futures Stage Recovery

Bombardier, Great-West in Focus

Futures for Canada's main stock index rose on Tuesday, after the benchmark index touched a two-month low in the previous session, helped by firmer commodity prices.

TSX Composite index dropped 259.09 points, or 1.3%, to close Monday at 19,726.45.

The Canadian dollar was down 0.05 to 78.39 cents U.S.

September futures recovered 0.2% Tuesday.

National Bank of Canada raised the rating on Bombardier to outperform from sector perform.

CIBC cut the rating on Great-West Lifeco to neutral from outperform.

CIBC cut the target price on Western Forest Products to $2.60 from $2.90.

Canada on Monday said it would allow fully vaccinated U.S. tourists into the country starting from Aug. 9 after the COVID-19 pandemic forced an unprecedented 16-month ban that many businesses complained was crippling them.

ON BAYSTREET

The TSX Venture Exchange hurtled earthward 37.4 points, or 4.1%, Monday to 870.91.

ON WALLSTREET

Stock futures rebounded slightly on Tuesday after concerns about the spread of COVID-19's delta variant caused investors to dump equities in the prior session.

Futures for the Dow Jones Industrials moved higher 204 points, or 0.6%, to 34,043.

Futures for the S&P 500 improved 22 points, or 0.5%, to 4,273.25.

Futures for the NASDAQ Composite Index jumped 65.25 points, or 0.5%, to 14,606.

Wall Street suffered a sharp selloff Monday as investors feared that the fast-spreading delta coronavirus variant could hinder the economic recovery. The blue-chip Dow tumbled more than 700 points, or 2.1%, to post its worst day since October 28 of last year. The S&P 500 fell 1.6% and the NASDAQ dropped about 1.1%.

Even after Monday’s drop, the S&P 500 is just 3.1% below its record hit last week. Additionally, while the equity benchmark dipped below its 50-day moving average during Monday’s rout, it ultimately closed above that key technical level, offering some hope to traders looking for a rebound on Tuesday.

Many of the stocks that were hit the hardest on Monday were bouncing in the premarket Tuesday. Shares of United Airlines bounced up 2% in early trading after losing 5% on Monday. American Airlines and Delta Air Lines were also bouncing.

Royal Caribbean jumped 2% in pre-market trading after falling 4% on Monday. Carnival was also bouncing.

Bank shares were slightly bouncing as investors were still eyeing bond yields under pressure. JPMorgan was up 0.6% in pre-market trading after losing 3% in the prior session. Bank of America added 0.8% in pre-market trading.

IBM shares jumped 3% in extended trading Monday after the enterprise technology and services provider reported second-quarter results that topped expectations and showed its strongest revenue growth in three years.

Netflix shares were about 0.5% higher in the pre-market ahead of the company’s second-quarter earnings after the bell Tuesday.

Overseas, in Japan, the Nikkei 225 sank 1% Tuesday, while in Hong Kong, the Hang Seng index descended 0.8%.

Oil prices regained 28 cents to $66.70 U.S. a barrel.

Gold prices moved higher $8.30 to $1,817.50 U.S. a pound.