Futures for stocks on Canada’s largest market fell on Wednesday after oil prices fell due to a bigger-than-expected crude inventory build in the United States and a spike in coronavirus cases.
Global coronavirus infections surged past 15 million, denting hopes of a recovery in fuel demand.
The S&P/TSX Composite Index ended Tuesday down 20.7 points to 16,024.50.
September futures were in the minus category by 0.2% Wednesday.
The Canadian dollar inched higher 0.12 cents Wednesday to 74.47 cents U.S.
Iamgold said on Tuesday it is restarting operations at its Rosebel gold mine in Suriname that it shut in June after union leaders issued a stop work order in response to employees testing positive for coronavirus.
Canadian National Railway on Tuesday reported a quarterly profit that edged past analysts' estimates as its cost-cutting moves helped it weather lower shipment volumes due to the COVID-19 pandemic.
French TGV high-speed train maker Alstom’s Chief Executive said he expects to secure European Union approval by the end of the month to buy Bombardier's rail business.
National Bank of Canada cut the rating on Boralex to sector perform from outperform.
RBC cuts rating on Cascades to underperform from sector perform.
National Bank of Canada cut the rating on Northland Power to sector perform from outperform.
On the economic beat, Statistics Canada reported Wednesday the Consumer Price Index (CPI) rose 0.7% on a year-over-year basis in June, up from a 0.4% decline in May. On a seasonally adjusted monthly basis, the CPI increased 1.0% in June, following a 0.1% increase in May.
ON BAYSTREET
The TSX Venture Exchange popped 10.6 points, or 1.2%, to close Tuesday at 695.76.
ON WALLSTREET
U.S. stock futures fell in early trading Wednesday amid renewed U.S.-China tensions and ahead of major technology earnings from Microsoft and Tesla after the closing bell.
Futures for Dow Jones Industrials sank 56 points, or 0.2%, early Wednesday, to 26,670.
Futures for the S&P 500 slid 5.25 points, or 0.2%, at 3,246.
Futures for the NASDAQ gained 13.5 points, or 0.1%, to 10,864.50.
Futures briefly extended losses in pre-market trading after the U.S. State Department abruptly ordered China to close its consulate in Houston. Foreign ministry spokesperson Wang Wenbin condemned the action and warned of firm countermeasures if the U.S. does not reverse its decision.
Pfizer shares rose more than 3% after the government said it approved the company to produce millions of doses of coronavirus vaccines.
A few disappointing company earnings after the bell Tuesday also weighed on investor sentiment. Shares of Snap dropped more than 9% in extended trading after the social media company reported fewer-than-expected daily active users.
Shares of United Airlines dipped in extended trading after the company reported a net loss of $1.62 billion for the second quarter. The coronavirus pandemic’s impact on travel fueled an 87% year-over-year revenue decline for the Chicago-based airline.
Earnings season continues on Wednesday with reports from Microsoft, Tesla, Chipotle Mexican Grill, CSX and Las Vegas Sands after the closing bell. All eyes will be on Tesla’s earnings, which could make the company qualify to become an S&P 500 constituent.
Biogen, Baker Hughes and NASDAQ all report earnings before the bell on Wednesday.
Investors are also weighing company earnings against the backdrop of increasing coronavirus cases in the U.S. The virus has infected more than 3.8 million Americans and killed at least 141,118 as of Tuesday, according to data compiled by Johns Hopkins University.
Texas and Florida hit a grim record Monday for daily coronavirus deaths based on a seven-day moving average, as hospitalizations continue to surge in 34 states across the United States.
President Donald Trump warned Tuesday the coronavirus pandemic in the United States will probably “get worse before it gets better.”
Existing home sales for June will be released at 10 a.m. on Wednesday. Economists polled by Dow Jones are expecting a rebound to 4.73 million sales.
Overseas, in Tokyo, the Nikkei 225 faded 0.6% Wednesday, while in Hong Kong, the Hang Seng index plummeted 2.3%
Oil prices dipped 72 cents to $41.20 U.S. a barrel.
Gold prices jumped $19.10 to $1,863.
