Baystreet.ca - Canada's main stock index was subdued on Tuesday as losses in energy shares kept a check on gains from the consumer prices data that showed inflation cooled to a 40-month low in July, raising hopes for another rate cut next month.
The TSX Composite Index inched ahead 5.21 points, to begin Tuesday at 23,121.60.
The Canadian dollar removed 0.03 cents to 73.35 cents U.S.
In corporate news, Neo Performance Materials has agreed to sell majority equity interest of China rare earth separation assets for $30 million. Neo shares gained 33 cents, or 4.3%, to $7.93.
Moreover, Gran Tierra Energy fell $1.07, or 9.2%, to $10.54, after the company offered to buy London's i3 Energy in a deal valued at 174.1 million pounds ($226.23 million U.S.).
On the economic calendar, Statistics Canada says July’s consumer price index rose 2.5% on a year-over-year basis, down from a 2.7% increase in June. On a seasonally adjusted monthly basis, the CPI rose 0.3% in July.
ON BAYSTREET
The TSX Venture Exchange nicked ahead 1.5 points, or 1.2%, to 574.53.
Seven of the 12 TSX subgroups were lower in the first hour, with energy tailing off 0.8%, communications losing 0.4%, and information technology down 0.3%.
The five gainers were led by gold, up 1.5%, materials, forging ahead 1.1%, and real-estate, moving up 0.2%.
ON WALLSTREET
Stocks slipped on Tuesday as investors struggled to continue building on the market’s recent recovery rally.
The Dow Jones Industrial index lost 50.02 points by noon Tuesday at 40,846.51
The S&P 500 index eased 5.43 points to 5,602.52.
The NASDAQ faded 30.79 points to 17,845.95.
Tuesday’s action marks a breather after the S&P 500 and NASDAQ Composite posted their eighth straight positive sessions. That was a first for both since late 2023.
Strong retail sales data and a soft inflation report issued last week have helped soothe investors’ fears on the economy. The S&P 500 and NASDAQ are now both higher by more than 1% on the month, underscoring the market’s dramatic turnaround.
Cybersecurity company Palo Alto Networks jumped nearly 8% after fiscal fourth quarter results topped analyst estimates and it set a $500 million stock buyback. Home improvement retailer Lowe’s dipped 1% after reporting worse-than-expected revenue and lowering its annual profit outlook, noting an expected slowdown in consumer spending.
Beyond earnings, Bank of America (NYSE:BAC) slipped almost 2% as Warren Buffett’s conglomerate Berkshire Hathaway (NYSE:BRKa) continued dumping shares.
Prices for the 10-year Treasury gained ground, lowering yields to 3.83% from Monday’s 3.88%. Treasury prices and yields move in opposite directions.
Oil prices dropped 21 cents at $74.16 U.S. a barrel.
Gold prices sprinted $6.80 to $2,562.70.