S&P/TSX composite ticks down as energy stocks balance softness, U.S. markets mixed

TORONTO –

Canada’s primary inventory index edged downward to begin the week as robust power shares helped steadiness out softness in financials, tech and battery metals, whereas U.S. markets have been blended.

The S&P/TSX composite index was down 16.41 factors at 20,676.74.

In New York, the Dow Jones industrial common was up 66.44 factors at 33,875.40. The S&P 500 index was up 3.52 factors at 4,137.04, whereas the Nasdaq composite was down 35.26 factors at 12,037.20.

“Markets seem to be waiting for the big earnings that are coming up,” mentioned Allan Small, senior funding adviser at iA Private Wealth.

In the U.S., a number of the greatest tech names are reporting this week, mentioned Small, together with Alphabet, Microsoft and Meta.

“That’s going to set the stage for how the market performs,” he mentioned.

It’s these firms which have seen a number of the greatest progress to date this 12 months after underperforming the market final 12 months, he mentioned: “These are the names that got hit the hardest, and many people are betting that they’ll rebound the hardest as well.”

Canadian earnings season can also be beginning to roll in, with the railway firms amongst these reporting this week. Canadian National Railway Co. reported report first-quarter revenues Monday afternoon as a consequence of a bumper grain crop and better oil costs.

However, Small mentioned it is the U.S. firms’ earnings that can actually be main the general markets.

Meanwhile, markets appear to be pricing in one other quarter-point hike on the Federal Reserve’s interest-rate resolution subsequent week, mentioned Small. But the massive query is whether or not this hike would be the final earlier than the central financial institution pauses, he mentioned.

“As usual, it’s not so much what they do. It’s what they say they’re going to do,” he mentioned.

“It’s just interesting how the Bank of Canada and the Federal Reserve are kind of getting to the same place, yet Bank of Canada hasn’t raised rates in the last few meetings,” added Small.

The Canadian greenback traded for 73.84 cents US in contrast with 73.86 cents US on Friday.

The June crude contract was up 89 cents at US$78.76 per barrel and the June pure fuel contract was up six cents at US$2.47 per mmBTU (million British thermal models).

The June gold contract was up US$9.30 at US$1,999.80 an oz and the May copper contract was down three cents at US$3.95 a pound.

This report by The Canadian Press was first printed April 24, 2023.