Equities
Global stocks mixed as investors turned their attention to major U.S. corporate earnings expected after the closing bell and economic data.
Wall Street’s main indexes were subdued at the open, amid a mixed bag of corporate results, as investors awaited Big Tech earnings to assess if the market’s recent record rally has momentum to spare.
The Dow Jones Industrial Average rose 0.07 per cent to 40,443.73. the S&P 500 advanced 0.02 per cent to 5,565.30, and the Nasdaq Composite dropped 0.14 per cent to 17,982.74 at the bell.
Toronto Stock Exchange’s S&P/TSX composite index opened 0.18 per cent lower at 22,834.56, as a dip in crude prices hurt energy stocks.
In Canada, investors are getting results from Canadian National Railway.
On Wall Street, markets are watching earnings from Tesla, Alphabet, Visa, Coca-Cola, General Electric, Philip Morris, Comcast, United Parcel Service, Lockhead Martin, Moody’s, Freeport-McMoRan, Spotify, Capital One, General Motors and Mattel.
“Tesla and [Google’s parent company Alphabet] are due to report earnings today after the bell, and their results – or the reaction to their results – could shift the wind in either direction,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Overseas, the pan-European STOXX 600 was up 0.17 per cent in morning trading. Britain’s FTSE 100 gave back 0.26 per cent, Germany’s DAX advanced 0.86 per cent and France’s CAC 40 was down 0.18 per cent.
In Asia, Japan’s Nikkei closed flat, while Hong Kong’s Hang Seng slid 0.94 per cent.
Commodities
Oil prices dipped as growing expectations of a ceasefire in the war in Gaza weighed on prices.
Brent crude futures for September fell 39 US cents to US$82.01 a barrel, and West Texas Intermediate (WTI) crude for September dropped 39 US cents to US$78.01 per barrel.
“Any further weakening of demand signals, combined with a resolution in Gaza, could lead to a further decrease in oil prices,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, adding that a swell in U.S. inventories last week would be a sign of dented demand.
In other commodities, spot gold was up 0.4 per cent at US$2,407.50 an ounce, and U.S. gold futures gained 0.6 per cent to US$2,408.80.
Currencies and bonds
The Canadian dollar weakened against its U.S. dollar counterpart.
The day range on the loonie was 72.59 US cents to 72.72 US cents in early trading. The Canadian dollar was down about 0.78 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, rose 0.15 per cent to 104.47.
The euro fell 0.35 per cent to US$1.0854. The British pound declined 0.18 per cent to US$1.2911.
In bonds, the yield on the U.S. 10-year note was last down at 4.238 per cent.
Other corporate news
United Parcel Service has reported a decline in second-quarter earnings on Tuesday after subdued package delivery demand and higher labour costs squeezed profits. It posted an adjusted profit of US$1.79 a share, down from US$2.54 a year ago.
General Motors has posted second-quarter profit and revenue that beat Wall Street’s expectations, and raised its annual profit forecast for a second time this year, buoyed by strong pricing and demand for gas-powered trucks. It reported adjusted earnings per share of US$3.06, topping the average estimate of US$2.75, according to LSEG data.
Spotify has reported second-quarter results broadly in line with analyst expectations, but failed to meet its own target for user growth. Revenue rose to 3.81 billion euros (US$4.14-billion), fractionally below analysts’ estimates of 3.82 billion euros, according to IBES data from LSEG.
Coca-Cola has raised its annual organic sales and profit forecasts, signalling consumers are willing to spend more for the beverage giant’s higher-priced sodas, energy drinks and juices mainly in international markets.
Comcast beat estimates for quarterly profit as strong growth in its Peacock streaming service and a smaller-than-expected loss in broadband customers helped overcome weakness in its studio and theme parks business.
U.S. defence company Lockheed Martin has raised its annual sales target for the first time this year, following the unexpected resumption of deliveries of its F-35 aircraft after Pentagon began accepting the jets last week.
Philip Morris International has raised its annual adjusted profit forecast, on steady demand for its Zyn nicotine pouches and higher prices of its cigarettes, and beat second-quarter revenue expectations.
Miner Freeport-McMoran beat second-quarter profit estimates, as higher copper prices offset lower production.
Economic news
Euro area consumer confidence
8:30 am ET: Canada new housing price index for June
10 am ET: U.S. existing home sales for June
With Reuters and The Canadian Press