TSX Begins Small Climb Wednesday Afternoon

Shopify, Loblaw in Focus

Canada's main stock index was flat on Wednesday as underwhelming forecast from e-commerce giant Shopify overshadowed strong earnings from other companies and a lower reading on inflation in June.

The TSX Composite index edged up 14.39 points to 20,187.74

The Canadian dollar regained 0.16 cents to 79.58 cents U.S.

Shares in Shopify fell $21.74, or 1.1%, to $1,936.56, as the company reiterated the same outlook since the last two quarters, despite beating second-quarter revenue expectations.

Loblaw rose 87 cents, or 1%, to $82.48, as it beat market estimates for quarterly revenue on increased demand for groceries and other essentials.

The largest percentage gainers on the TSX were Tilray, which jumped $4.00, or 25%, to $ after quarterly earnings.

Real Matters fell $1.55, or 10%, the most on the TSX, to 13.90.

On the economic slate, Statistics Canada said its consumer price index rose 3.1% on a year-over-year basis in June, down from a 3.6% gain in May. On a seasonally adjusted monthly basis, the CPI rose 0.1% in June.

ON BAYSTREET

The TSX Venture Exchange reclaimed 5.22 points to 904.03

Eight of the 12 TSX subgroups were positive by noon, as health-care soared 9.4%, materials gained 0.7%, and gold brightened 0.4%.

The four laggards were weighed most by communications down 0.7%, industrials, off 0.4%, and consumer discretionary stocks, slipping 0.3%.

ON WALLSTREET

The S&P 500 was little changed on Wednesday as investors parsed through a slew of corporate results while awaiting a key policy update from the Federal Reserve.

The Dow Jones Industrials retreated 88.1 points to 34,970.42.

The S&P 500 eked up 1.24 points to 4,402.70,

The NASDAQ heightened 99.61 points to 14,760.19.

The major averages are still on track to end the month higher. The S&P is up 2.4% for July, while the NASDAQ has progressed 1.1%, and Dow has gained 1.6%.

Boeing shares climbed about 5% after the manufacturer posted its first profit since the third quarter of 2019 thanks to a rebound in aircraft deliveries. Pfizer shares rose about 2% after the company reported stronger-than-expected earnings and raised its 2021 sales forecast for the COVID vaccine.

Investors also digested a host of quarterly results from megacap tech names. Google-parent Alphabet popped more than 4% after the tech giant posted quarterly results, registering a 69% jump in advertising revenue.

Apple shares dipped 0.4% after CEO Tim Cook warned that silicon “supply constraints” will affect sales the iPhone as well as the iPad. The company did beat top- and bottom-line estimates and said iPhone sales surged 50% year over year.

Microsoft saw its shares rise 1% after reporting an earnings beat despite a dip in revenue from its Windows division.

The busiest week of earnings continues on Wednesday with Qualcomm, Facebook, Ford and PayPal among the names on deck. Of the S&P 500 companies that have reported quarterly results thus far, 89% have topped earnings estimates, while 86% have exceeded revenue expectations.

The Fed will conclude its two-day meeting on monetary policy Wednesday. The Federal Open Market Committee is set to release a statement at 2 p.m. ET followed by a press conference with Chairman Jerome Powell.

Prices for 10-Year Treasurys faded, raising yields to 1.26% from Tuesday’s 1.24%. Treasury prices and yields move in opposite directions.

Oil prices captured 60 cents to $72.25 U.S. a barrel.

Gold prices slid 20 cents to $1,799.60 U.S. an ounce.