Futures Get Lift from Trade Prospects

CN Strike a Concern

Canada’s main stock index futures were higher on Tuesday, lifted by hopes that U.S. and China may end their trade war.

The TSX Composite Index backpedaled 3.36 points from Friday’s all-time high, to finish Monday at 17,017.59

The Canadian dollar dropped 0.02 cents to 75.70 cents U.S. early Tuesday

December futures improved 0.3% early Tuesday.

TC Energy said it expects comparable earnings before interest, taxes, depreciation and amortization to exceed $10 billion in 2022, driven by long-term contracts and assets.

About 3,000 workers of Canadian National Railway went on strike, after both parties failed to resolve contract issues.

Five months before an ambush killed 39 colleagues, local workers at a Semafo mine in Burkina Faso pleaded with managers to fly them to the site rather than go by a road that was prone to attacks

BMO resumes coverage on Altagas with an outperform rating and price target of $23.

TD Securities cut the rating on Methanex to hold from buy

Canaccord Genuity initiated coverage on HLS Therapeutics with a buy rating and a $22.50 target price

On the macroeconomic front, Statistics Canada said this country’s manufacturing sales edged down 0.2% in September to $57.4 billion, following a 0.8% increase in August.

ON BAYSTREET

The TSX Venture Exchange faded 3.66 points Tuesday at 524.92

ON WALLSTREET

U.S. stock index futures indicated record highs yet again for Wall Street as gains from Boeing helped offset disappointing quarterly numbers from retailers such as Home Depot and Kohl’s.

Futures for the Dow Jones Industrials gained 50 points, or 0.2%, early Tuesday to 28,058.

Futures for the S&P 500 tacked on 8.25 points, or 0.3%, at 3,130.

The NASDAQ Composite added 37.75 points, or 0.5%, to 8,371.25.

Boeing shares rose more than 1% before the open after wrangling up 50 orders for the embattled 737 Max jet at the Dubai Air Show. One order for 20 planes came from an undisclosed buyer while a Kazakhstan-based airline put in another one for 30 planes.

Those gains diverted some attention away from Home Depot and Kohl’s, which dropped on the back of weaker-than-expected same-store sales data for the previous quarter. Home Depot pulled back more than 4% pre-market while Kohl’s tanked 11.3%.

The major averages eked out record closing highs on Monday even as investors dealt with mixed signals on the U.S.-China trade front. Media quoted government sources as saying China is pessimistic about a trade deal with the U.S. This is reportedly due to different views on the cancellation of tariffs.

Former White House chief economic advisor Gary Cohn told reporters Monday that he believes President Donald Trump will go ahead with the Dec. 15 tariffs if the U.S. and China haven’t agreed to a trade deal by then.

On the data front, a reading on housing starts is expected out at 8:30 a.m. ET.

The House Permanent Select Committee on Intelligence is holding its latest open hearing as part of the Trump impeachment inquiry, starting at 9 a.m. ET.

Overseas, in Japan, the Nikkei 225 faded 0.5% Tuesday, while in Hong Kong, the Hang Seng Index jumped 1.6%.

Oil prices deducted 70 cents to $56.35 U.S. a barrel.

Gold prices dipped three dollars to $1,468.90 U.S. an ounce.