TSX Futures Retreat

Target Shares Crater

Futures for equities in Canada inched lower on Wednesday, ahead of inflation data due later in the day and amid downbeat global mood on concerns over economic growth and rising consumer prices.

The S&P/TSX popped 284.6 points or 1.4%, to end Tuesday at 20,491.01

June futures faded 0.1% Wednesday.

The Canadian dollar doffed 0.20 cents to 77.87 cents U.S.

CIBC cut the target price on CAP REIT to $60.00 from $63.00

CIBC cut the target price on Hudbay Minerals to $11.50 from $14.00

ATB Capital Markets raised the rating on Questor Technology to sector perform from underperform.

On the economic slate, Statistics Canada reports the Consumer Price Index (CPI) rose 6.8% on a year-over-year basis in April, up from a 6.7% gain in March. On a seasonally adjusted monthly basis, the CPI increased 0.7% in April.

Elsewhere, Alberta Premier Jason Kenney told a U.S. Senate committee Tuesday Canada could add over a million barrels per day (bpd) of oil export capacity to the United States over the next two years. Kenney also called for a new cross-border oil pipeline.

ON BAYSTREET

The TSX Venture Exchange grew 11.95 points, or 1.7%, Tuesday to 712.49.

ON WALLSTREET

U.S. stock futures fell on Wednesday after another major retailer warned of rising cost pressures, confirming the fears over inflation that have sent major benchmarks to big losses so far this year.

Futures for the Dow Jones Industrials slumped 199 points, or 0.6%, to 32,382

Futures for the S&P 500 fell 33 points, or 0.8%, to 4,051.75.

Futures for the NASDAQ Composite Index turfed 143.25 points, or 1.1%, to 12,416.50.

Despite the recent comeback, the S&P 500 is down 14% for the year, while the NASDAQ is off by 23%.

Target shares dropped more than 22% in pre-market trading after it reported first-quarter earnings much lower than Wall Street estimated because of higher costs for fuel and compensation. The retailer also saw lower-than-expected sales for discretionary merchandise like TVs.

Lowe’s shares fell more than 2% in premarket trading after missing sales expectations in its first quarter report as shoppers bought fewer supplies for outdoor projects.

On Tuesday, Walmart’s earnings fell short of expectations as it too cited higher fuel and labour costs. Walmart shares ended Tuesday lower

Stocks and other risk assets have been pressured by inflation and the Federal Reserve’s attempt to tamp down price increases through rate hikes, which has led to concerns about a potential recession. Fed Chair Jerome Powell said at a Wall Street Journal conference on Tuesday that “there won’t be any hesitation” about raising rates until inflation is under control.

However, some recent economic data, including the jobs report and retail sales data from April, still show the U.S. economy growing.

In Japan, the Nikkei 225 picked up 0.9% Wednesday. In Hong Kong, the Hang Seng took on 0.2%.

Oil prices regrouped $2.61 to $115.01 U.S. a barrel.

Gold prices ditched $10.80 to $1,808.10 U.S. an ounce.