Canada's main stock index futures were higher on Tuesday in the aftermath of Monday’s federal election, which saw Justin Trudeau’s Liberal Party hang onto power, albeit with a minority government
The TSX Composite Index gained 41.33 points to end Monday at 16,418.45
The Canadian dollar fell 0.09 cents to 76.31 cents U.S. early Tuesday
Trudeau hung onto power after an election on Monday that saw his government reduced to a minority, but aides predicted he would be able to govern for two years without many problems.
December futures gained 0.2% early Tuesday.
RBC forecast more pressure for domestic oil storage and pipeline businesses on Tuesday after Prime Minister Justin Trudeau’s Liberals retained power but were stripped to a minority government that will need the support of a smaller left-leaning party to govern.
Bombardier on Monday unveiled its revamped Liberty Learjet 75 corporate plane, betting that extra legroom and a lower price tag would help the Canadian company beat back competition from Embraer SA’s market leading model.
CIBC raised the rating on Orla Mining to outperform from neutral.
CIBC cut the target price CCL Industries to $68.00 from $69.00
Goldman Sachs cut the target price on Imperial Oil to $37.00 from $39.00
Economically speaking, Statistics Canada reported that retail sales edged down 0.1% in August to $51.5 billion. Sales were down in six sub-sectors, representing 51% of retail trade.
ON BAYSTREET
The TSX Venture Exchange regained 0.92 points Monday to 543.36
ON WALLSTREET
U.S. stock index futures pointed to a flat open on Tuesday as investors pored through a slew of key earnings from companies such as United Technologies, Procter & Gamble and McDonald’s.
Futures for the Dow Jones Industrials lost 14 points, or 0.1%, early Tuesday to 26,783
Futures for the S&P 500 gained 4.25 points, or 0.1%, at 3,010.75
NASDAQ Composite futures advanced 27.75 points, or 0.4%, to 7,976
United Technologies shares rose more than 1.5% after the company posted earnings that topped analyst expectations. Better-than-expected revenues from the company’s Otis, Pratt & Whitney and Collins Aerospace divisions helped drive the beat.
Procter & Gamble climbed 4.2% in the premarket after its results topped expectations. The company’s numbers were driven by Procter’s beauty, health care and fabric and home care lines.
However, those results were dampened by a 3% drop in McDonald’s shares. The fast-food giant posted earnings and revenue for the previous quarter that missed analyst expectations. The company’s U.S. same-store sales, a key metric for franchises, grew by 4.8%. That’s below estimates of 5.1%.
So far, more than 18% of S&P 500 companies have reported quarterly numbers. Of those companies, nearly 80% have beaten analyst earnings expectations.
Texas Instruments, Chipotle Mexican Grill and Snap are poised to report their latest quarterly figures after market close.
Investors also kept an eye on global trade after China’s vice foreign minister said that Beijing and Washington had achieved some progress in their trade talks.
His comments come less than 24 hours after President Donald Trump sounded optimistic about the prospect of a trade agreement by the middle of next month.
On the data front, the Philadelphia Fed non-manufacturing index for October will be released at around 8:30 a.m. ET. Existing home sales for September and the Richmond Fed survey for October will follow slightly later in the session.
Overseas, in Hong Kong, the Hang Seng Index gained 0.2%, while markets in Tokyo were shuttered for holiday.
Oil prices gained 33 cents to $53.64 U.S. a barrel.
Gold prices picked up $1.10 to $1,489.20 U.S. an ounce.
