Futures for Canada's main stock index fell on Tuesday, dragged down by weaker crude prices, while sentiment remained fragile ahead of U.S. inflation data and a European Central Bank meeting this week on concerns over monetary policy tightening.
The S&P/TSX settled from earlier gains, but still finished green by 28.36 points, to conclude Monday at 20,819.09.
June futures backed off 0.4% Tuesday.
The Canadian dollar dropped 0.15 cents to 79.33 cents U.S.
CIBC raised the target price on BRP to $125.00 from $124.00.
BofA Global Research raised the rating on CAE to neutral from underperform.
Stifel GMP cut the rating on Doman Building Materials Group to hold from buy.
On the economic slate, Statistics Canada says growth in Canadian merchandise imports and exports slowed in April, with imports rising 1.9% and exports increasing 0.6%.
As a result, the agency concludes, Canada's merchandise trade surplus with the world narrowed from $2.3 billion in March to $1.5 billion in April.
Later this morning (about 10 a.m. EDT), Western University’s IVEY School of Business puts out its Purchasing Managers Index report for May.
ON BAYSTREET
The TSX Venture Exchange dropped 1.48 points Monday to 718.63.
ON WALLSTREET
Stock futures fell Tuesday after Target issued a warning about its current quarter’s profits, stoking fears of a potential recession.
Futures for the Dow Jones Industrials tumbled 226 points, or 0.7%, Tuesday to 32,686.
Futures for the S&P 500 faded 34 points, or 0.8%, to 4,086.50.
Futures for the NASDAQ Composite index plummeted 142.75 points, or 1.1%, to 12,462.25.
Target shares fell 9% after the retailer announced plans to work down excess inventory. The company said it will implement additional markdowns to products and cancel some orders. Target also lowered its operating margins guidance for the quarter. Walmart shares followed Target lower, sliding 4.3%.
Investors are still following what is a lighter week in company earnings. Shares of United Natural Foods were rising in premarket trading after the wholesale company beat expectations for its fiscal third quarter. However, food stock J.M. Smucker was under pressure after its quarterly report.
In Japan, the Nikkei 225 edged up 0.1% Tuesday. In Hong Kong, the Hang Seng fell 0.6%
Oil prices dipped 12 cents to $118.38 U.S. a barrel.
Gold prices gained $5.80 to $1,849.50 U.S. an ounce.
