TORONTO — Canada’s main stock index edged downward to start the week as strong energy stocks helped balance out softness in financials, tech and battery metals, while U.S. markets were mixed.
The S&P/TSX composite index was down 16.41 points at 20,676.74.
In New York, the Dow Jones industrial average was up 66.44 points at 33,875.40. The S&P 500 index was up 3.52 points at 4,137.04, while the Nasdaq composite was down 35.26 points at 12,037.20.
“Markets seem to be waiting for the big earnings that are coming up,” said Allan Small, senior investment adviser at iA Private Wealth.
In the U.S., some of the biggest tech names are reporting this week, said Small, including Alphabet, Microsoft and Meta.
“That’s going to set the stage for how the market performs,” he said.
It’s these companies that have seen some of the biggest growth so far this year after underperforming the market last year, he said: “These are the names that got hit the hardest, and many people are betting that they’ll rebound the hardest as well.”
Canadian earnings season is also starting to roll in, with the railway companies among those reporting this week. Canadian National Railway Co. reported record first-quarter revenues Monday afternoon due to a bumper grain crop and higher oil prices.
However, Small said it’s the U.S. companies’ earnings that will really be leading the overall markets.
Meanwhile, markets seem to be pricing in another quarter-point hike at the Federal Reserve’s interest-rate decision next week, said Small. But the big question is whether this hike will be the last before the central bank pauses, he said.
“As usual, it’s not so much what they do. It’s what they say they’re going to do,” he said.
“It’s just interesting how the Bank of Canada and the Federal Reserve are kind of getting to the same place, yet Bank of Canada hasn’t raised rates in the last few meetings,” added Small.
The Canadian dollar traded for 73.84 cents US compared with 73.86 cents US on Friday.
The June crude contract was up 89 cents at US$78.76 per barrel and the June natural gas contract was up six cents at US$2.47 per mmBTU.
The June gold contract was up US$9.30 at US$1,999.80 an ounceand the May copper contract was down three cents at US$3.95 a pound.
This report by The Canadian Press was first published April 24, 2023.
Companies in this story: (TSX:GSPTSE, TSX_CADUSD=X)
