Canada's main stock index fell on Tuesday, dragged by mining and energy stocks, while expectations of a hawkish stance from the Bank of Canada in its meeting later this week further dented sentiment.
The TSX Composite remained in the red 25.43 points to reach noon Tuesday at 21,259.41.
The Canadian dollar regained 0.3 cents to 80.75 cents U.S.
Investors are also focusing on corporate earnings as major companies including Lundin Mining, Methanex and Mullen Group are scheduled report results later this week.
Lundin shares dipped 15 cents, or 1.4%, to $10.48. Methanex shares fell 43 cents to $56.03, and Mullen stock gained six cents to $14.20.
BRP Inc. took some hits, dropping $8.57, or 7.4%, to $108.05, and Onex Corp declined $1.38, or 1.4%, to $96.37.
Prime Minister Justin Trudeau, who fell short of a majority in last month's election, will introduce a Cabinet on Tuesday.
All eyes are on the Bank of Canada's meeting later this week. Economists see the central bank raising rates as early as the third quarter of next year, at least three months earlier than previously expected.
ON BAYSTREET
The TSX Venture Exchange dipped 1.78 points, to 962.15
Seven of the 12 TSX subgroups were still down midday, with health-care slipping 1.1%, while materials and consumer discretionary stocks each retreated 0.9%.
The five gainers were led by financials better by 0.5%, while industrials gained 0.3% and communications added 0.2%.
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 came off their highs of the morning, but remained above water 38.4 points to 35,779.55, another all-time record.
The S&P 500 leaped 15.35 points to 4,581.83, for yet another record high.
The NASDAQ Composite progressed 56.06 points, to 15.282.77.
An intraday reversal in shares of Facebook weighed on major averages at midday. After trading flat to higher to start the session, Facebook shares were last down 4%. The company topped analysts’ earnings expectations but missed estimates for revenue and monthly active users.
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.
Nearly 30% S&P 500 companied have reported earnings and more than 80% of them beat Wall Street expectations, according to media calculations. S&P 500 companies are expected to grow profit by about 35.6% in the third quarter.
Technology darlings Alphabet and Microsoft traded higher heading into their earnings reports after the bell Tuesday. Microsoft bulls are expecting a strong quarter for the tech giant, bolstered by its key Azure business. Analysts are expecting Alphabet earnings to come in 43% higher year over year.
Twitter, Advanced Micro Devices and Robinhood also report quarterly earnings after the bell on Tuesday.
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 slightly higher, lowering yields to 1.63% from Monday’s 1.64%. Treasury prices and yields move in opposite directions.
Oil prices strengthened 86 cents to $84.62 U.S. a barrel.
Gold prices slid 14.80 to $1,792.00 U.S. an ounce.
