Futures Skid on OPEC Moves

CIBC, Osisko in Focus

Futures for Canada’s main stock index were lower on Wednesday as oil prices dropped on expectations that the Organization of the Petroleum Exporting Countries may increase crude output to cover any supply shortages from Venezuela and Iran.

The S&P/TSX Composite Index moved backward 17.52 points to close Tuesday at 16,144.79

The Canadian dollar stumbled 0.57 cents to 77.45 centsU.S. early Wednesday

June futures sank 0.4% Wednesday

Canadian Imperial Bank of Commerce on Wednesday reported second-quarter earnings that were ahead of market expectations, helped by a strong performance by all its businesses and expansion in the United States.

Nemaska Lithium said on Tuesday it had secured funding of up to $402 million from investors, which it plans to use to build a mine and processing plant to produce lithium, the key ingredient for rechargeable batteries.

Morgan Stanley raised the rating on MEG Energy to overweight from equal weight.

Canaccord Genuity initiated coverage on Osisko Metals with speculative buy rating and price target of $1.00.

ON BAYSTREET

The TSX Venture Exchange gained 1.46 points Tuesday to 787.85

ON WALLSTREET

U.S. stock index futures pointed to a lower open on Wednesday after President Donald Trump said Tuesday he was “not satisfied” with trade talks with China despite opposing comments from other members of his administration.

He also told reporters he was not sure about whether a scheduled meeting with the North Korean leader Kim Jong Un would actually happen.

Futures for the Dow Jones Industrials plunged 171 points, or 0.7%, to 24,674

S&P 500 futures skidded 15.5 points, or 0.6%, to 2,710.50, while futures for the NASDAQ composite index gave back 63 points, or 0.9%, to 6,846.25

In corporate news, several major retailers reported earnings on Wednesday.

Shares of Minneapolis-based Target sank more than 5% in pre-market trading after it reported first-quarter earnings that missed analysts’ expectations on both the top and bottom lines.

The company blamed poor spring weather for the disappointing performance as it works to remodel many of its locations.

Lowe’s also missed expectations for the first quarter, reporting a rise in sales of just 0.6% versus expectations of a 3% increase

Tiffany, meanwhile, easily beat analysts’ estimates. The company’s stock rose more than 10% in pre-market trading after reporting earning per share of $1.14 versus expectations of 83 cents. It also raised its full-year guidance in light of the solid beat.

On the data front, there will be flash manufacturing and services purchasing managers’ index (PMI) at 9:45 a.m. ET and new home sales due at 10 a.m. ET. Minutes from the Federal Reserve’s latest meeting will be released at 2 p.m. ET.

In Japan, the Nikkei 225 sagged 1.2%, while markets in Hong Kong returned from holiday to lose 1.8% Wednesday

Oil prices slid 39 cents to $71.81U.S. per barrel.

Gold prices picked up $2.10 to $1,294.10U.S. an ounce.

This article provided by NewsEdge.