Equities in Canada’s largest centre regained lost ground midday and exhibited slight gains on Tuesday, as investors awaited U.S. inflation data and the European Central Bank meeting to gauge the path of monetary policy.
The S&P/TSX recovered 18.45 points to pause for lunch Tuesday at 20,837.54
The Canadian dollar added 0.19 cents to 79.67cents U.S.
The largest percentage gainers on the TSX were Cronos Group, which jumped 12 cents, or 3.3%, to $3.71, and Arc Resources, which rose 75 cents, or 3.6%, to $21.54.
Aritzia fell $1.15, or 3%, the most on the TSX, to $37.46, and the second-biggest decliner was NFI Group, down 44 cents, or 3.2%, to $13.35.
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 2.54 points to 716.09.
Seven of the 12 subgroups were in the red by noon Tuesday, with materials down 0.8%, while consumer staple and consumer discretionary stocks each fell 0.6%.
The four gainers were led by energy, ahead 1.4%, communications up 0.8%, and financials, up 0.1%.
Health-care issues were unchanged by noon EDT.
ON WALLSTREET
Stocks struggled for direction on Tuesday after Target issued a warning about its current quarter’s profits, which caused an early sell-off for retailers.
The Dow Jones Industrials remained negative 61.53 points, off its lows of the morning, to 32,854.25.
The S&P 500 lost 5.84 points to 4,115.59.
The NASDAQ Composite fell 2.9 points to 12,058.47.
Target shares fell about 3.6% after the retailer announced plans to work down excess inventory, though the stock trimmed its losses as the session progressed. 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%.
Major retailers have delivered mixed results and outlooks in recent weeks, adding to stock market volatility as investors try to determine if the announcements signal the start of a potential recession or a rapid change in consumer spending that caught some companies off guard on the inventory side.
Energy was one of top performing sectors on Tuesday as oil futures hovered near $120 per barrel. Exxon jumped more than 3% following an upgrade from Evercore ISI, putting the stock above $100 per share for the first time since 2014. Phillips 66 picked 2.2%, and Chevron gained 1.5%.
Shares of Apple rose more than 1%, leading Big Tech stocks. In deal news, Kohl’s jumped nearly 9% after the retailer said it was in exclusive negotiations with Franchise Group about a potential takeover.
Investors are still following what is a lighter week in company earnings. Food stock J.M. Smucker rose 5% after the company topped expectations for its quarterly report.
Treasury prices recovered strength, lowering yields to 2.97% from Monday’s 3.05%. Treasury prices and yields move in opposite directions.
Oil prices regained 91 cents to $119.41 U.S. a barrel.
Gold prices hiked $10.50 to $1,854.20 U.S. an ounce.
