Stocks Struggle to Find Direction

Vermilion, Cronos in Focus

Canada's main stock index was little changed at the open on Tuesday as gains in energy stocks offset losses in technology stocks, while investors looked ahead to a key U.S. inflation reading later this week.

The TSX poked higher 18.08 points to commence trading Tuesday at 19,687.25.

The Canadian dollar chucked 0.04 to 77.75 cents U.S.

Energy shook off its Monday lethargy, with names such as Vermilion shooting up 95 cents, or 3.2%, to $30.51, while Imperial Oil took on $1.21, or 2.2%, to $55.45.

Health-care proved a different story, as Cronos Group backpedaled 52 cents, or 11.3%, to $4.08, while rival Tilray handed back 27 cents, or 4.9%, to $5.27.

ON BAYSTREET

The TSX Venture Exchange added 0.14 points to 668.42.

The 12 TSX subgroups were evenly divided in the first hour, as energy surged 1.8%, while materials grabbed 0.5%, and utilities were 0.4% to the good.

The half-dozen laggards were weighed most by health-care, 3.6% paler, information technology clicking 2% lower, and consumer discretionary stocks off 0.3%.

ON WALLSTREET

Stocks fell on Tuesday as investors navigated a batch of disappointing company reports ahead of a key inflation reading.

The Dow Jones Industrials slumped 55.79 points to 32,776.75

The S&P 500 slipped 20.2 points to 4,119.86.

The NASDAQ Composite 179.35 points to 12,466.21.

Memory chipmaker Micron warned that revenue may fall short of its prior guidance because of “macroeconomic factors and supply chain constraints.” The stock fell more than 3% in early trading.

It’s been a rough week for chipmakers. On Monday, weaker-than-expected revenue guidance from Nvidia weighed on the group. Nvidia was lower again on Tuesday, shedding another 3% after a 6% decline on Monday.

Outside of chips, a pair of NASDAQ-listed stocks were also taking early hits. Novavax slumped 27% after slashing full-year revenue guidance because of poor demand for its COVID vaccines.

Upstart declined nearly 10% after the consumer lending company reported second quarter results that missed both profit and revenue expectations.

Treasury prices staggered, raising yields to 2.80% from Monday’s 2.75%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.19 to $91.95 U.S. a barrel.

Gold prices leaped $8.70 to $1,813.90 U.S. an ounce.