Canada's main stock index inched higher approaching noon hour on Tuesday, as investors weighed the prospect of more U.S. stimulus to shore up a pandemic-hit economy against fears of more lockdowns due to a global surge in COVID-19 cases.
The S&P/TSX Composite Index moved ahead 24.12 points by noon hour to 16,185.45.
The Canadian dollar dropped 0.17 cents at 74.79 cents U.S.
U.S. lawmakers geared up to discuss recovery strategies on Tuesday, a day after Senate Republicans proposed a $1-trillion aid package hammered out with the White House.
The largest percentage gainers on the TSX were Canopy Growth, which jumped $1.94, or 8.6% to $24.62, and Aurora Cannabis, which rose $1.07, or 7.6%, to $15.22.
Brookfield Business Partners L.P. fell 91 cents, or 2.4%, to $37.33, and the second biggest decliner was MEG Energy, down 23 cents, or 5.7%, to $3.78.
ON BAYSTREET
The TSX Venture Exchange gained 2.15 points to 711.26.
The 12 TSX subgroups were divided evenly, with health-care surging 5.4%, while real-estate strengthened 1.4% and information technology took on 0.7%.
The half-dozen laggards were weighed most by energy, down 2.7%, while financials slid 0.4%, and industrials settled 0.1%.
ON WALLSTREET
Stocks fell slightly on Tuesday as lawmakers continued their debate over the next coronavirus relief package while traders pored over the latest batch of corporate earnings.
The Dow Jones Industrials remained negative 94.78 points to break for lunch at 26,489.99.
The S&P 500 slumped 3.95 points to 3,235.55.
The NASDAQ fell 49.52 points to 10,487.39..
Senate Majority Leader Mitch McConnell unveiled the Republican coronavirus relief plan Monday after the bell. The legislation would include relief for jobless Americans, another direct payment to individuals of up $1,200, more Paycheck Protection Program small business loan funds, among other provisions.
McConnell said the bill would set federal unemployment insurance at 70% of a worker’s previous wages, replacing the $600 per week which states stopped paying out this week.
The bill comes as coronavirus cases continue to rise across the U.S. So far, more than 4.2 million infections have been confirmed along with at least 147,303 deaths in the U.S., according to Johns Hopkins University.
Stocks were also under pressure after the release of disappointing quarterly numbers from McDonald’s and 3M.
McDonald’s shares slid 2.2% after the fast-food giant posted a quarterly profit that missed analyst expectations along with a 30% drop in overall revenue. 3M, another Dow component, dropped 4.7% after its quarterly earnings and revenue were lower than expected.
Visa, Advanced Micro Devices, Amgen, eBay, Mondelez International and Starbucks report after the bell on Tuesday.
Thus far, more than 160 S&P 500 companies have reported calendar second-quarter earnings. Of those companies, 81% have reportedly beaten expectations.
Meanwhile, the Federal Reserve starts its two-day policy meeting on Tuesday, followed by an interest rate decision on Wednesday. The Federal Open Market Committee decided to maintain the target range for the federal funds rate at 0-0.25% at its last meeting in June as it continued to deal with the impact of the coronavirus pandemic on the U.S. economy.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.60% from Monday’s 0.61%. Treasury prices and yields move in opposite directions.
Oil prices lost 44 cents to $41.16 U.S. a barrel.
Gold prices added $16.60 to $1,947.60 U.S. an ounce.
