TORONTO — Canada's main stock index ticked lower Tuesday amid mixed trading results, while U.S. markets moved higher.
The S&P/TSX composite index closed down 30.59 points at 20,551.53.
In New York, the Dow Jones industrial average was up 26.83 points at 35,438.07.The S&P 500 index was up 12.82 points at 4,567.46, while the Nasdaq composite was up 85.69 points at 14,144.56.
In the U.S., earnings season is top of mind for investors as the second-quarter reports roll in, said Ashish Utarid, assistant vice-president of investment strategy at IG Wealth Management.
The majority of companies that have reported so far have beat the lowered expectations for the second quarter, said Utarid.
“Cost discipline in the first half of the year has been rewarding companies today, even as sales are lower than estimates. This results in an earnings beat, because the bar was set so low,” he said.
“They revised guidance lower last quarter, they expected a recession ... the market is basically rewarding them.”
Though the past couple of weeks have seen the Dow often leading U.S. markets as participation in this year’s rally broadens beyond big tech names, on Tuesday the Nasdaq was mildly in the lead once again, gaining 0.61 per cent compared with 0.08 per cent on the Dow and 0.28 per cent on the S&P 500.
Some of the companies reporting earnings beats Tuesday included General Electric and 3M, while investors anticipated after-markets reports from Microsoft and Alphabet.
Amid the earnings beats this week, investors are also anticipating an interest rate hike from the Federal Reserve Wednesday.
“It would be a huge surprise if they were to pause,” said Utarid.
But beyond the hike, investors will be interested in what officials have to say, he said.
“Are they indicating another raise in September? Or do they feel that this would be a moment where they could pause?”
The European Central Bank is also expected to announce a rate hike this week, noted Utarid, though its economy appears on shakier ground than in the U.S., where the economy has been resilient.
Oil continued its steady upward climb, nearing US$80 a barrel Tuesday.
The Canadian dollar traded for 75.85 cents US compared with 75.92 cents US on Monday.
The September crude oil contract was up 89 cents at US$79.63 per barrel and the September natural gas contract was up six cents at US$2.75 per mmBTU.
The August gold contract was up US$1.50 at US$1,963.70 an ounce and the September copper contract was up six cents at US$3.92 a pound.
This report by The Canadian Press was first published July 25, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
