Stocks Begin Negative

Canada's main stock index opened lower on Tuesday, weighed down by energy stocks as oil prices slumped in cautious trading a day ahead of U.S. inflation data that could offer hints on the path of interest rates.

The TSX dumped 115.68 points to begin the Tuesday session at 20,469.47.

The Canadian dollar slumped 0.16 cents to 74.62 cents U.S.

Steady demand for energy amid crimped global supplies helped Suncor Energy report a better-than-expected first-quarter profit. Suncor shares took on 19 cents to $40.27.

The benchmark Canadian index posted its highest closing level in a week in the previous session, lifted by gains in e-commerce giant Shopify Inc, which Tuesday gave back some of Monday’s gains, $2.28, or 2.7%, to $83.85.

ON BAYSTREET

The TSX Venture Exchange slipped 0.89 points, to kick off Tuesday at 619.10.

All but one of the 12 TSX subgroups were in the red in the first hour, weighed most by financials, down 1%, real-estate, stumbling 0.9%, information technology. skidding 0.7%.

Only consumer staples held out against the negative tide, gaining 0.3%.

ON WALLSTREET

Stocks were under pressure Tuesday, with regional bank shares retreating, as investors readied for key inflation reports due later in the week and progress on the U.S. debt limit.

The Dow Jones Industrials poked ahead 11.08 points starting the session at 33,629.77.

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The S&P 500 index shed 12.62 points to 4,125.50.

The NASDAQ Composite sank 48.09 points to 12,208.83.

President Joe Biden is set to meet with House Speaker Kevin McCarthy Tuesday afternoon at 4 p.m. Both sides have cautioned that the meeting is simply a chance to have a conversation, with definitive progress on raising the debt limit unlikely. Biden and McCarthy remain at odds over the House Speaker’s caveat that a deal on raising the debt ceiling be tied to spending cuts. Biden maintains raising the debt ceiling is non-negotiable.

Treasury Secretary Janet Yellen said Monday afternoon that failing to raise the debt ceiling would be an “economic catastrophe,” and regulators are not close to any policies that would limit short-selling regional bank stocks.

PacWest shares fell 6% after a volatile session in which the regional bank rose more than 3%.

Lucid, PayPal and Skyworks were all down after their quarterly reports were released. Meanwhile, Palantir jumped 14% on a strong earnings report and upbeat guidance.

Prices for the 10-year Treasury inched up, lowering yields to 3.51% from Monday’s 3.52%. Treasury prices and yields move in opposite directions.

Oil prices lost 63 cents to $72.53 U.S. a barrel.

Gold prices picked up $3.30 to $2,036.50 U.S. an ounce.