Canada’s main stock index opened lower on Tuesday, as energy stocks were dragged down by weakness in crude prices, while investors remained on the sideline ahead of the two-day U.S. Federal Reserve meeting.
The TSX Composite index lost 38.94 points to begin the session at 20,126.02
The Canadian dollar subsided 0.27 cents to 79.46 cents U.S.
Teck Resources said that quarterly adjusted profit rose 4% sequentially, driven by record-high copper prices. Teck shares gave back 40 cents, or 1.5%, to $26.95.
Egypt has signed four contracts with Barrick Gold for gold exploration in the country’s Eastern Desert, the ministry of petroleum and mineral resources said. Barrick shares eked ahead three cents to $26.15.
Desjardins raised the price target on George Weston to $137.00 from $127.00. Weston shares acquired $1.07 to $126.35.
Desjardins raised the target price on Loblaw Companies to $85.00 from $77.00. Loblaw started the day up 47 cents to $81.32.
National Bank of Canada raised the price target on TFI International to $144 from $137. TFI shares took on $8.49, or 6.5%, to $139.95.
Rio Tinto said it planned to cut production at its B.C. Works aluminum smelter in Kitimat to 35% following a strike initiated by members of Unifor after negotiation talks failed.
The TSX Venture Exchange docked 0.48 points to 905.77.
Eight of the 12 TSX subgroups were negative to kick off the session, as energy sputtered 2.2%, health-care waned 1.2%, and materials sagged 1%.
The four gainers were co-led by real-estate and information technology, each up 0.7%, while industrials gained 0.3%.
U.S. stocks fell for the first time in six days on Tuesday ahead of quarterly earnings reports from several megacap technology companies.
The Dow Jones Industrials leaped 82.76 points to 35,075, to run its win streak to five.
The S&P 500 added 10.51 points to 4,422.30, also rising for a fifth straight day.
The NASDAQ gained 3.72 points to 14,840.71.
The major averages are all slipping from their respective records reached in the previous session, on track to break their five-day winning streaks.
Shares of UPS tumbled more than 8% as the shipping company’s domestic revenue came up shy of estimates. UPS beat on the top and bottom lines, however, as a surge in e-commerce orders continued.
Tesla erased earlier gains and fell 1.5% following a better-than-expected second-quarter earnings report. The electric vehicle maker passed $1 billion in quarterly net income for the first time.
Second-quarter earnings season continues with Google-parent Alphabet, Microsoft and Apple set to report after the bell Tuesday.
Investors are awaiting the Federal Reserve’s update on its monetary policy as the central bank’s two-day meeting began. The Federal Open Market Committee will release a statement when the meeting concludes Wednesday, followed by Chairman Jerome Powell’s news conference.
The International Monetary Fund warned Tuesday that there’s a risk inflation will prove to be more than just transitory, pushing central banks to take pre-emptive action.
Prices for 10-Year Treasurys gained ground, lowering yields to 1.24% from Monday’s 1.30%. Treasury prices and yields move in opposite directions.
Oil prices squeaked up one cent to $71.92 U.S. a barrel.
Gold prices climbed 90 cents to $1,800.10 U.S. an ounce.