Techs Poke Up, Energy Fades
Canada’s main stock index edged lower on Tuesday as energy shares fell after the Organization of the Petroleum Exporting Countries cited a high degree of uncertainty regarding the global oil market this year.
The S&P/TSX Composite Index remained negative 5.04 points to move into noon hour at 16,258.25
The Canadian dollar was unchanged at 76.99 centsU.S.
Shares of Suncor Energy dove $1.04, or 1.9%, to $52.83, and Pembina Pipeline fell 62 cents, or 1.4%, to $44.49, and proved the top drags on the energy group.
NFI Group gained 19 cents to $51.26, after announcing a share buyback plan.
Among the biggest percentage losers on TSX were shares of Tahoe Resources, which fell 12 cents, or 1.8%, to $6.74, after the company appointed a new CEO.
U.S. President Donald Trump said on Tuesday he had a good relationship with Justin Trudeau just days after blasting the Canadian prime minister and other U.S. allies over trade.
The TSX Venture dropped 3.5 points to reach midday at 765.52
Eight of the 12 TSX subgroups were higher by noon, however, as information technology surged 0.6%, consumer discretionary hiked 0.5%, and real-estate took on 0.3%.
The four laggards were weighed most by health-care, energy and industrials, each down 0.2%.
U.S. stocks held steady after President Donald Trump and North Korea leader Kim Jong Un signed an agreement aimed at establishing a “peace regime” on the Korean peninsula and better relations between the two states.
The Dow Jones Industrials notched higher 7.34 points to greet noon at 25,329.65, weighed down by losses in UnitedHealth and Goldman Sachs.
The S&P 500 picked up 5.85 points to 2,787.85, as consumer discretionary and utilities stocks led the index higher.
The NASDAQ added 40.92 points to 7,700.85, thanks to a 1% climb in Netflix and a 0.4% uptick in Amazon.
Lack of detail in the agreement about the path to de-nuclearization on the peninsula kept the market’s gain in check.
AT&T shares rose 0.4% Tuesday ahead of U.S. District Court Judge Richard Leon’s decision on whether to permit its $85-billion deal for Time Warner. While the government or AT&T could appeal Leon’s decision, the ruling will have far-reaching implications for dealmaking across the telecommunications and media world.
Several other players in the industries, including Twenty-First Century Fox and Disney, are actively pursuing deals of their own; others, like Verizon, could interpret the ruling as a go-ahead to buy a large content company to compete with AT&T.
Shares of Twenty-First Century Fox rose 1.5%, while those for Disney increased 0.3%
Closely watched consumer pricing data, often viewed as an inflation barometer, increased 2.8% in the 12 months through May, the biggest advance since February 2012, after rising 2.5% in April.
A slowdown in the climb of gasoline prices helped dampen the movement upward, though core CPI, which excludes volatile food and energy costs, also rose 0.2%.The year-over-year increase in core CPI is now 2.2%.
Investors are also looking ahead to a meeting of the U.S.Federal Reserve, due to take place on Tuesday and Wednesday.
Fed Chair Jerome Powell and his colleagues are expected to announce a quarter-point increase in interest rates as the central bank seeks to normalize monetary policy with the economy showing signs of health.
Prices for the benchmark for the 10-year U.S.Treasury fell, raising yields to 2.97% from Monday’s 2.95%. Treasury prices and yields move in opposite directions.
Oil prices gained 29 cents at $66.39U.S. a barrel.
Gold prices slipped 80 cents at $1,302.40U.S. an ounce.
This article provided by NewsEdge.