Stocks Flat, Waiting for Fed Signals

Futures for Canada's main stock index were flat on Tuesday after starting the week on stronger footing, as investors looked towards the U.S. Federal Reserve's speakers to calm market volatility after the central bank's hawkish comments last week.

The TSX Composite index remained higher 156.77 points to conclude business Monday at 20,156.36.

The Canadian dollar was down 0.09 cents to 80.75 cents U.S.

September futures were down 0.02% Tuesday.

All eyes are on the U.S. central bank this week. The Fed last week signaled a potentially tougher stance on inflation and shifted projections for its first two rate hikes into 2023, sparking a selloff in global stocks.

ON BAYSTREET

The TSX Venture Exchange dropped 4.9 points Monday to 941.93.

ON WALLSTREET

U.S. stock futures edged higher on Tuesday after the Dow Jones Industrial Average on Monday posted its best day since March.

Futures for the Dow Jones Industrials progressed 28 points, or 0.1%, to 33,788.

Futures for the S&P 500 moved up 6.75 points to 4,220.50.

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Futures for the NASDAQ Composite improved 35.5 points, or 0.3%, to 14,165.50.

The indexes recouped some of last week’s steep losses when the Federal Reserve’s updated projections on inflation and interest rate hikes sparked a selloff. Commodity stocks like Devon Energy and Occidental Petroleum led the market comeback Monday after being hit hard last week. Norwegian Cruise Line and Boeing stocks climbed more than 3% as the economy continues to reopen.

Alphabet shares traded slightly lower in pre-market trading after the European Commission opened a probe into Google’s advertising unit.

There were not many breakout movers in pre-market trading so far Tuesday. Caterpillar and Ford were slightly higher in early trading. Tesla and Pfizer were lower.

Federal Reserve Chairman Jerome Powell will testify before the House of Representatives Tuesday on the central bank’s response to the pandemic. His remarks, which were released ahead of the hearing Monday evening, are likely to support the notion that the Fed is ready to soon start discussing removing some of its unprecedented stimulus measures enacted during the pandemic.

On Tuesday morning, the National Association of Realtors will publish existing home sales data for May.

Overseas, in Japan, the Nikkei 225 marched ahead 3.1%, while in Hong Kong, the Hang Seng index sagged 0.6%.

Oil prices doffed 64 cents to $73.02 U.S. a barrel.

Gold prices dipped $3.20 to $1,779.70 U.S.