Equities in Canada’s largest centre inched lower at the open on Tuesday, weighed by mining stocks, while expectations of a hawkish stance by the Bank of Canada in its meeting later this week further dented sentiment.
The TSX Composite backed off 16.8 points from Monday’s record close to open Tuesday at 21,268.04.
The Canadian dollar regained 0.13 cents to 80.91 cents U.S.
Meanwhile, investors are focused on corporate earnings as major companies including Lundin Mining, Methanex and Mullen Group are scheduled report
later this week.
Lundin backed off four cents to $10.59. Shares in Methanex fell nine cents to $56.37.
RBC raised the target price on CI Financial to $32.00 from $30.00. CI shares jumped 37 cents, or 1.3%, to $28.22.
CIBC cut the rating on Onex Corp. to neutral from outperform. Onex shares collapsed $1.93, or 2%, to $95.82.
Prime Minister Justin Trudeau, who fell short of a majority in last month's election, will introduce a Cabinet on Tuesday.
ON BAYSTREET
The TSX Venture Exchange dipped 0.11 points, to 963.82
Eight of the 12 TSX subgroups lost some territory, with health-care slipping 1.2%, while gold and materials each retreated 0.6%.
The four gainers were led by utilities, up 0.3%, while communications mustered a gain of 0.2%, and financials eked higher 0.1%.
ON WALLSTREET
U.S. stocks climbed to record levels on Tuesday as major corporations continued to turn in solid quarterly results.
The Dow Jones Industrials vaulted 130.1 points to 35,871.25, another all-time record.
The S&P 500 leaped 29.82 points to 4,596.30, for yet another record high.
The NASDAQ Composite spiked 147.01 points, or 1%, to 15.373.72.
United Parcel Service saw its shares jump 7% after the shipping firm posted strong beats on profit and revenue across all business segments.
Dow component 3M gained slightly after beating earnings on the top and bottom lines.
General Electric rose 5% after the company issued an upward revision to its full-year earnings forecast while reporting higher than expected third-quarter profit.
Tesla gained another 5% after the electric vehicle company soared more than 12% in the previous session to reach a $1 trillion market cap for the first time.
Technology darlings Alphabet and Microsoft traded higher heading into their earnings reports after the bell Tuesday. Microsoft bulls are expecting a strong quarter for Microsoft, bolstered by its key Azure business. Analysts are expecting Alphabet earnings to come in 43% higher year over year.
Of the 119 companies in the S&P 500 that have reported earnings, 83% beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.
Twitter, Advanced Micro Devices and Robinhood also report quarterly earnings after the bell on Tuesday.
Social media giant Facebook dipped 0.6% after the company topped analysts’ earnings expectations. Facebook missed expectations for revenue and monthly active users.
Shares of Intercontinental Exchange jumped 1.4%, the day after media reports that Mastercard will partner with ICE’s spinoff Bakkt in a move to allow customers to integrate cryptocurrencies into their products. ICE will provide behind-the-scenes custodial services for those that sign up.
On the data front, U.S. consumer confidence rose in October, reversing a three-month downward trend, according to the Conference Board.
Its consumer confidence index climbed to a reading of 113.8, topping a Dow Jones expectation of 108 and up from 109.8 in September.
Prices for 10-year Treasurys were unchanged, keeping yields at Monday’s 1.64%.
Oil prices shaded up three cents to $83.79 U.S. a barrel.
Gold prices slid $20.30 to $1,786.50 U.S. an ounce.
