Futures on the Move Upward

Gibson, Kellogg in Focus

Futures for Canada's main stock index advanced on Tuesday, supported by higher crude prices, although concerns around a global recession and aggressive interest rate hikes limited gains.

The S&P/TSX jumped 253.15 points, or 1.3%, to finish Monday at 19,183.63.

September futures gained 0.6% Tuesday.

The Canadian dollar hiked 0.21 cents to 77.23 cents U.S.

Credit Suisse raised the rating on Gibson Energy to neutral from underperform.

On the economic scene, Statistics Canada reported retail sales increased 0.9% to $60.7 billion in April. Sales were up in six of 11 subsectors, led by higher sales at general merchandise stores.

The agency also said new home prices for Canada were up 0.5% in May compared with April, following a 0.3% rise in the previous month.

Prices were up in 14 of the 27 census metropolitan areas surveyed and unchanged in the other half.

ON BAYSTREET

The TSX Venture Exchange nosed up 1.57 points Tuesday to 641.94.

ON WALLSTREET

Stock futures rose in early morning trading Tuesday following a brutal week as investors assessed a more aggressive Federal Reserve and rising chances of a recession.

Futures for the Dow Jones Industrials jumped 406 points, or 1.4%, early Tuesday to 30,275.

Futures for the S&P 500 hiked 54.75 points, or 1.5%, to 3,730.50.

Futures for the NASDAQ Composite index popped 169.75 points, or 1.5%, to 11,466.50.

Markets in the U.S. were closed Monday for “Juneteenth”.

Shares of Kellogg jumped more than 7% in premarket trading after the company said it would split into three separate companies. Separately, food company Mondelez increased 1.2% in premarket trading following news that it would acquire energy bar maker Clif Bar in a $2.9 billion transaction.

Airline stocks soared higher in premarket trading amid hopes of a summer travel boom. Shares of Spirit Airlines jumped more than 9% in premarket trading after JetBlue raised its takeover offer to $33.50 a share, even as Spirit deliberates a proposed merger with Frontier Group. JetBlue’s stock price jumped 1.8% in pre-market trading.

Investors will monitor incoming data, including existing home sales on Tuesday, to gauge the health of the economy. Recent data showing low consumer confidence, falling retail spending and a cooling housing market have fueled recession fears as the Fed battles inflation at 41-year highs.

In Japan, the Nikkei 225 regained 1.8% Tuesday. In Hong Kong, the Hang Seng recovered 1.9%

Oil prices leaped $2.41 to $110.40 U.S. a barrel.

Gold prices dished off $4.80 to $1,835.80 U.S. an ounce.