Canadian stocks edged lower on Tuesday after comments from U.S. Federal Reserve Chair spurred worries on the trajectory of interest rate cuts in the world's largest economy, while in-line reading of the domestic manufacturing data kept losses in check.
The TSX Composite Index dipped 60.63 points to move into Tuesday afternoon at 21,815.16.
The Canadian dollar was up 0.23 cents to 73.02 cents U.S.
Money markets currently see a 41% chance of a rate cut in July by the Bank of Canada, while a 63% chance of an interest rate cut in September by the U.S. Fed, according to LSEG data.
In corporate news, Dirtt Environmental Solutions on Monday announced changes in its board of directors. Dirtt shares stayed put at 57 cents Tuesday morning.
Air Canada dipped six cents to $17.84 after it said that it has agreed to receive eight Boeing 737 MAX 8 jets from lessor BOC Aviation.
On the economic stage, the Markit PMI Manufacturing PMI stood pat in June from May at 49.3 points.
Stock markets were closed Monday for Canada Day.
ON BAYSTREET
The TSX Venture Exchange slopped 2.82 points to 567.
Seven of the 12 TSX subgroups were lower midday, with communications sinking 2.1%, utilities sliding 0.9%, and gold dipping 0.8%.
The five gainers were led by energy, up 1.2%, while health-care each gained 0.2%.
ON WALLSTREET
Stocks churned Tuesday as Federal Reserve Chair Jerome Powell noted progress on inflation, but reiterated that the central bank was not quite ready to cut rates. The S&P 500 was pulled in different directions as Tesla shares jumped and Nvidia shares declined.
The Dow Jones Industrials dropped 60.23 points Tuesday afternoon at 39,109.28.
The S&P 500 index eked ahead 0.64 points to 5,475.73.
The NASDAQ gained 22.31 points to 17,901.61.
“We’ve made quite a bit of progress and in bringing inflation back down to our target,” Powell said at a central banking forum.
“We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing type or policies
of loosening policy,” he added.
Tesla shares helped support the S&P 500 as Elon Musk’s electric vehicle company reported better-than-expected deliveries for the second quarter. The stock, which had a rough first half, jumped $18.80, or 9%, to $228.64.
Nvidia shares fell $2.22, or 1.8%, to $122.08, weighing on the S&P 500, as investors questioned whether the artificial intelligence darling could continue its big year. The shares are up 147% so far in 2024. Drugmaker Eli Lilly, another winner from the first half of the year, saw shares decline $16.82, or 1.8%, to $897.55.
Prices for the 10-year Treasury fell slightly, raising yields to 4.45% from Monday’s 4.48%. Treasury prices and yields move in opposite directions.
Oil prices subtracted 14 cents at $83.24 U.S. a barrel.
Gold prices deleted $8.80 to $2,330.10
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