Futures Down to End July

Alamos, Kinross in Focus

Canadian stock futures fell on Friday as weak commodity prices weighed, with investors awaiting Gross Domestic Product data for cues about the pace of economic recovery.

The TSX Composite index gained 81.38 points Thursday to 20,311.78.

The Canadian dollar inched up 0.06 cents to 80.39 cents U.S.

September futures staggered 0.6% Friday.

Laurentian Bank Securities cut the target price on Alamos Gold to C$14.25

National Bank of Canada raises the price target on Kinross Gold to outperform from sector perform.

CIBC raises target price on Toromont Industries to $109.00 from $106.00

On the economic slate, Statistics Canada said its industrial product price index was unchanged in June, but up 16.8% compared with June 2020.

By contrast, the agency’s raw materials price hiked 3.9% on a monthly basis in June and 38.1% year over year.

The economy scaled back in May, with the Gross Domestic Product contracting 0.3%, the second consecutive monthly decline, as 12 of 20 industrial sectors were down.

ON BAYSTREET

The TSX Venture Exchange climbed 12.48 points, or 1.4%, Thursday to 921.27

ON WALLSTREET

Stock market futures fell early Friday as a soft earnings report from Amazon threatened to dampen an otherwise strong month ahead of July’s final day of trading.

U.S. stock futures were uniformly negative to start the month’s last session.

Futures for the Dow Jones Industrials dipped 107 points, or 0.3%, to 34,867.

Futures for the S&P 500 fell 30.5 points, or 0.7%, to 4,381.25.

Futures for the NASDAQ Composite Index staggered 172.5 points, or 1.1%, to 14,865.25.

Amazon sank 6.4% in pre-market trading after it reported its first quarterly revenue miss in three years and gave weaker guidance. Pinterest fell even further, down 21%, after saying it lost monthly users during the three months ended June 30.

Major averages are still on track for a solid month, although volatility has picked up amid concerns about the economic recovery in the face of the spreading delta variant.

The NASDAQ has added 1.9%, while the Dow climbed 1.7% in July, while the broad S&P 500 is up 2.8% over the same period. Utilities, health-care, real estate and technology stocks have led the S&P 500 higher for the month, while energy and financials have lagged.

Procter & Gamble shares rose 1.4% after the consumer giant topped analysts’ estimates for quarterly earnings and revenue. However, the company warned that increasing commodity costs could hit its earnings in the upcoming year.

Shares of online brokerage Robinhood started trading on the Nasdaq at $38 per share on Thursday, but the stock eventually closed its debut session more than 8% lower $34.82 per share. Robinhood shed another 1.5% in premarket trading.

Weaker-than-expected readings on the U.S. economy further eased concerns about the Federal Reserve dialing back asset purchases.
U.S. second-quarter gross domestic product accelerated 6.5% on an annualized basis, considerably less than the 8.4% Dow Jones estimate.

Meanwhile, the latest weekly jobless claims also came in higher than expected.

The Fed will receive the latest iteration of its preferred inflation gauge, the personal consumption expenditures price index, Friday.

Overseas, in Japan, the Nikkei 225 index tumbled 1.8%, while in Hong Kong, the Hang Seng index swooned 1.4%,

Oil prices settled 13 cents to $73.49 U.S. a barrel.

Gold prices gave back $4.40 to $1,831.40 U.S. a pound.