Futures for Canada's main stock index slid on Tuesday, tracking weakness in global markets as investors braced for key earnings reports and a big U.S. interest rate hike this week.
The TSX soared 121.56 points to close Monday at 19,104.48.
Futures for the TSX dropped 0.2% Tuesday.
The Canadian dollar fell 0.12 cents to 77.69 cents U.S.
Investors are looking for results from commodity-linked companies including miner First Quantum Minerals later in the day and energy companies such as Enbridge and Imperial Oil this week.
Canada will examine the resiliency of telecom networks across the country before approving Rogers Communications’ proposed $20-billion purchase of Shaw Communications.
ON BAYSTREET
The TSX Venture Exchange nicked higher Monday by 0.32 points to 608.29.
ON WALLSTREET
U.S. stock futures fell on Tuesday morning after Walmart cut its profit forecast, sending retail stocks tumbling in the premarket.
Futures for the Dow Jones Industrials removed 118 points, or 0.4%, early Tuesday to 31,849.
Futures for the S&P 500 capsized 14.75 points, or 0.4%, to 3,955.25.
Futures for the NASDAQ Composite fell 61 points, or 0.5%, to 12,293.50.
A late Monday announcement from Walmart, which cut its quarterly and full-year profit estimates because of rising food inflation, alarmed investors who deliberated the implications for other retail stocks.
The big-box retailer said higher prices are spurring consumers to pull back on general merchandise spending, particularly in apparel.
Walmart plunged 9% in early morning trading and dragged other retailers with it. Target dropped 5.2%, and Amazon fell 3.7%. Kohl’s docked 4.5% and Dollar General lost 3.6%, while Costco shed 3.1%.
General Motors fell 3.6% in premarket trading after the company missed earnings estimates, citing supply chain disruptions stemming from Russia’s war on Ukraine and global COVID lockdowns.
Elsewhere, Coca-Cola shares rose 1.3% premarket after the topped earnings and revenue expectations, citing recovering sales volume that dropped in the pandemic and higher pricing.
Shares of McDonald’s eked traded just above the flat line in early trading following mixed second-quarter results, in which net sales were hurt in part by the closure of locations in Russia and Ukraine, but international growth elsewhere fueled a rise same-store sales.
General Electric, UPS and 3M also reported strong quarterly earnings Tuesday.
In Japan, the Nikkei 225 waned 0.2% Tuesday. In Hong Kong, however, the Hang Seng jumped 1.7%
Oil prices gained $1.77 to $98.47 U.S. a barrel.
Gold prices slid $3.20 to $1,715.90 U.S. an ounce.
