Canada’s main stock index made its way into positive country midday Tuesday, though bleak earnings reports from e-commerce company Shopify and cannabis producer Hexo put a damper on things.
The TSX Composite Index recovered 26.09 points to greet noon at 16,413.62
The Canadian dollar slipped 0.09 cents to 76.50 cents U.S.
The health-care sector fell 1%, weighed by a 6% drop in shares of Hexo after it posted a bigger net loss, hit by an inventory writedown. Hexo retreated seven cents, or 2.3%, to $2.96.
Shopify, meantime, dipped $6.50, or 1.5%, to $416.25.
The largest percentage gainers on the TSX were Canfor, which rose 29 cents, or 1.9%, to $15.89, followed by a rise of $3.38, or 2.9%, in Waste Connection, to $120.65.
ON BAYSTREET
The TSX Venture Exchange docked 2.79 points by noon to 538.19
Seven of the 12 Toronto subgroups remained negative in the middle of the session, with health-care stocks sinking 0.8%, consumer discretionaries down 0.6%, and real-estate weaker by 0.2%.
The five gainers were led by materials, up 1.1%, gold, better by 0.9%, industrials, improving by 0.7%.
ON WALLSTREET
Stocks fell rapidly on Tuesday after reports a phase-one trade deal between China and the U.S. may not be signed next month.
The Dow Jones Industrial Average stepped back 7.7 points to 27,083.02
The broader S&P 500 eked 1.53 points above Monday’s record close to 3,040.95
The NASDAQ Composite Index cut back 41.01 points to 8,286.40
The report said the agreement may not be signed at a November summit in Chile. The report, however, cited a U.S. administration official saying if a deal is not signed then, it just means more time is needed to move forward.
Merck and Pfizer contributed to the slight gains. Merck’s earnings beat expectations, boosted by immunotherapy drug Keytruda. Pfizer’s profit also topped analyst estimates. Both stocks were up at least 2%.
Expectations of easier monetary policy also helped lift the S&P 500 to a new record. The central bank is largely expected to lower interest rates by 25 basis points. That would be the third time this year the Fed cuts rates.
Tuesday’s gains were kept in check, however, by a 2% slide in shares of Google-parent Alphabet, which fell after the company posted earnings that missed analyst expectations. Alphabet reported a profit of $10.12 per share. Analysts expected earnings per share of $12.42.
Data shows 78% of the S&P 500 companies that have reported thus far beat analyst expectations. Investors are also increasing bets that at least a partial trade deal between China and the U.S. will be signed next month.
Prices for the benchmark 10-year U.S. Treasury were unchanged, keeping yields at Monday’s 1.84%.
Oil prices slipped 15 cents to $55.66 U.S. a barrel.
Gold prices docked $3.60 to $1,492.20 U.S. an ounce.
