Canada’s main stock index futures edged lower on Wednesday, weighed by lower oil prices, which declined on data showing a bigger-than-expected rise in U.S. crude stocks.
The TSX Composite Index moved into the red 26.93 points to end Tuesday at 16,391.52
The Canadian dollar demurred 0.03 cents to 76.35 cents U.S. early Wednesday
December futures lost 0.1% early Wednesday.
Canadian National Railway cut its adjusted profit forecast for the year and said it expects the first half of 2020 to be “challenging” as freight demand in North America takes a hit from a weakening economy.
CIBC cut the target price on Capital Power to $32.00 from $33.00
CIBC also cut the target price on Enbridge to $56.00 from $57.00
CIBC then raises target price on Fortis to $57.00 from $56.00
Economically speaking, Statistics Canada reported that wholesale sales declined 1.2% to $64.3 billion in August, largely offsetting the 1.4% gain in July. Declines were recorded in five of seven sub-sectors, representing 85% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange dropped 2.89 points Tuesday to 540.47
ON WALLSTREET
U.S. stock futures were slightly lower on Wednesday as investors digested earnings reports from Caterpillar and Boeing.
Futures for the Dow Jones Industrials fell 41 points, or 0.2%, early Wednesday to 26,722
Futures for the S&P 500 slid 5.25 points, or 0.2%, at 2,989.25
NASDAQ Composite futures sank 6.75 points, or 0.1%, to 7,852
Caterpillar said it earned $2.66 per share in the third quarter, compared to consensus estimate of $2.88 per share. Revenue came in at $12.758 billion, while Wall Street expected revenue of $13.572 billion.
The heavy machinery manufacturer lowered its full-year earnings per share forecast to a range of $10.59 and $11.09, lower than the expected $11.70. However, the stock traded flat after falling more than 5% in the pre-market.
Meanwhile, Boeing shares climbed 1.5% after the airplane maker said it will stick to its timeline for the return of the 737 Max. That was enough to offset earnings that badly missed analyst expectations. The company reported a profit of $1.45 per share. Analysts expected a profit of $2.09.
Weak results from Texas Instruments also weighed on futures, however. Texas instruments — which is often seen as a proxy for the microchip industry — plunged more than 9% in the pre-market after posting fourth-quarter guidance well below market estimates.
Ford, Microsoft, and Tesla are among those scheduled to report their latest quarterly figures after market close.
Despite the weak results from Caterpillar and Texas Instruments, the third-quarter earnings season has largely topped analyst expectations.
Of the 118 S&P 500 companies that have reported, 81% have posted better-than-expected results.
Overseas, in Japan, the Nikkei 225 index returned from holiday to gain 0.3%, while in Hong Kong, the Hang Seng Index lost 0.8%,
Oil prices dipped 55 cents to $53.93 U.S. a barrel.
Gold prices gained $7.70 to $1,495.20 U.S. an ounce.
