Down Day for Futures

Bombardier, KB in Focus

Futures for Canada's main stock index slipped on Wednesday, dragged down by weakness in commodities, while investors awaited domestic inflation figures.

The S&P/TSX hung onto gains of 73.66 points by Tuesday’s closing bell to 19,257.29.

September futures collapsed 1.1% Wednesday.

The Canadian dollar shaved off 0.31 cents to 77.02 cents U.S.

Bombardier workers on a key program for the Canadian business jet maker will decide on Wednesday whether to accept a new contract offer or walk off the job. Meantime, analysts at TD have cut the price target on the company’s stock to $62.00 from $69.00

Goldman Sachs cut the target price on Parkland Fuel to $35.00 from $36.00.

CIBC raises target price on Transalta to $17.50 from $17.00.

On the economic scene, Statistics Canada reported May’s consumer price index rose 7.7% on a year-over-year basis, up from a 6.8% gain in April.

The agency adds, on a seasonally-adjusted monthly basis, the CPI increased 1.1% in May.

ON BAYSTREET

The TSX Venture Exchange raced ahead 11.02 points, or 1.7%, Tuesday to 652.97.

ON WALLSTREET

U.S. stock index futures fell early Wednesday after the major averages jumped in regular trading hours, attempting to claw back some losses following weeks of selling.

Futures for the Dow Jones Industrials retreated 393 points, or 1.3%, early Wednesday to 30,132.

Futures for the S&P 500 backpedaled 54.75 points, or 1.5%, to 3,713.

Futures for the NASDAQ Composite index faltered 182.75 points, or 1.6%, to 11,394.50.

On the earnings front, KB Home will post results after the market closes on Wednesday.

Growing fears that the economy will tip into a recession have recently weighed on stocks. The Federal Reserve last week hiked interest rates by three-quarters of a percentage point, the central bank’s largest rate increase since 1994.

The move came as the Fed tries to cool inflation, which has surged to a 40-year high.

Fed Chair Jerome Powell will appear before Congress on Wednesday, kicking off two days of testimony.

In Japan, the Nikkei 225 dipped 0.4% Wednesday. In Hong Kong, the Hang Seng tumbled 2.6%

Oil prices flopped $5.20 to $104.32 U.S. a barrel.

Gold prices nicked up 60 cents to $1,839.40 U.S. an ounce.