Canada's main stock index opened lower on Tuesday, weighed by technology stocks, as investors awaited U.S. inflation data and a European Central Bank meeting this week for cues on monetary policy tightening.
The S&P/TSX dropped 64 points to kick off Tuesday at 20,773.09.
The Canadian dollar nosed ahead 0.04 cents to 79.53 cents U.S.
CIBC raised the target price on BRP to $125.00 from $124.00. BRP shares galloped $1.17, or 1.4%, to $86.07.
BofA Global Research raised the rating on CAE to neutral from underperform. CAE shares docked 43 cents, or 1.3%, to $33.55.
Stifel GMP cut the rating on Doman Building Materials Group to hold from buy. Doman shares started out up two cents to $6.71.
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.
The IVEY PMI for May ballooned to 72 in May, from 66.3 in April and showed a vast improvement over the 64.7 figure for May 2021.
ON BAYSTREET
The TSX Venture Exchange backpedaled 2.24 points to 716.53.
Seven of the 12 subgroups were in the red in Tuesday’s first hour, with industrials trailing Monday’s close by 0.9%, while consumer discretionary and consumer staple stocks were each down 0.8%.
The five gainers were led by energy, rumbling 1.1%, while gold jumped 0.6%, and health-care stocks were haler 0.5%.
ON WALLSTREET
Stocks fell on Tuesday after Target issued a warning about its current quarter’s profits, stoking fears of a potential recession.
The Dow Jones Industrials subtracted 216.43 points to 32,699.35.
The S&P 500 ditched 26.17 points to 4,095.26.
The NASDAQ Composite fell 82.48 points to 11,978.89.
Target shares fell more than 6% 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 2.5%.
Major retailers have delivered mixed results and outlooks in recent weeks, adding to stock market volatility as investors try to determine if they signal the start of a potential recession or a rapid change in consumer spending.
Tech stocks were broadly lower, with shares of Amazon falling more than 3%. In deal news, Kohl’s jumped nearly 9% after the retailer said it was in exclusive negotiations with Franchise Group about a potential takeover.
Sentiment was largely muted Monday, with no U.S. economic data releases and a quiet Federal Reserve in its blackout period. There were also no earnings reports for major companies.
Investors are still following what is a lighter week in company earnings. Shares of United Natural Foods jumped 9% after the wholesale company beat expectations for its fiscal third quarter. Food stock J.M. Smucker rose slightly after its quarterly report.
Treasury prices recovered, lowering yields to 2.99% from Monday’s 3.05%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.50 to $120.00 U.S. a barrel.
Gold prices was hoisted $9.30 to $1,853 U.S. an ounce.
