Futures Down Slightly As First Half Ends

Couche-Tard in Focus

Futures for equities in Canada’s largest market fell on Tuesday, dragged down by weaker oil prices on the back of rising coronavirus cases and simmering U.S.-China tensions.

A possible return of Libyan oil production, which has been down to a trickle since the start of the year, also hurt crude prices.

The S&P/TSX Composite Index sprang up 200.74 points, or 1.3%, to conclude Monday at 15,389.72

June futures dipped 0.2% Tuesday.

Prime Minister Justin Trudeau says this country is over the worst of the coronavirus outbreak but adds a spike in cases in the United States and elsewhere shows Canadians must remain vigilant as the economy reopens.

Alimentation Couche-Tard’s quarterly results beat estimates on Monday, as customers spent more per trip to its convenience stores, even as overall traffic declined due to the COVID-19 pandemic.

Cirque du Soleil Entertainment Group filed for bankruptcy protection on Monday as the COVID-19 pandemic forced the famed circus operator to cancel shows and lay off its artistes.

Jefferies raised the target price on Restaurant Brands International to $53.00 from $47.00

National Bank of Canada cut the target price on Cineplex to $8.00 from $10.00

Economically speaking, Statistics Canada reported Gross Domestic Product dropped 11.6% in April, following a 7.5% decline in March, as all 20 industrial sectors decreased.


The TSX Venture Exchange flew 9.51 points, or 1.6%, to 608.25.


U.S. stock futures were mostly flat early Tuesday ahead of the final trading day of a volatile month for markets.

Futures for Dow Jones Industrials lost 62 points, or 0.2%, early Tuesday, to 25,435.

Futures for the S&P 500 demurred 6.5 points, or 0.2 %, to 3,041.25.

Futures for the NASDAQ Composite Index slipped 12.5 points, or 0.1%, to 9,961.25.

Despite the recent uptick in coronavirus cases, stocks are headed for a month of gains in June. The Dow is up 0.8% and the S&P 500 is up 0.3% in June. The NASDAQ has returned more than 4% this month.

Shares of Wells Fargo ticked 1.2% lower in the pre-market after the bank said Monday it would likely slash its dividend in the third quarter to comply with the Federal Reserve stress test. Bank of America, Citi, JPMorgan and Goldman Sachs said their dividends would stay the same.

Shares of chip stock Micron jumped 5.3% following the company’s better-than-expected earnings report. Micron gave strong forward revenue guidance. Shares of Lululemon gained 4% on news it will acquire at-home fitness company Mirror for $500 million.

Federal Reserve chair Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee at 12:30 p.m. on Tuesday. The joint hearing will address the Fed and Treasury’s response to the coronavirus pandemic.

In remarks he will deliver Tuesday, Powell said uncertainty reigns over the outlook for the economy in the wake of the coronavirus pandemic.

On things macroeconomic, the Conference Board’s consumer confidence index will be released at 10 a.m. on Tuesday. Economists are expecting a read of 91 in June, up from May’s reading of 86.6.

Overseas, in Tokyo, the Nikkei 225 gained 1.3% Tuesday, while in Hong Kong, the Hang Seng index picked up 0.5%.

Oil prices slid 68 cents at $39.02 U.S. a barrel.

Gold prices fell $1.10 to $1,780.10.