Futures Drop on Rate Anticipation

The TSX climbed 123.98 points to close Tuesday at 20,055.60.

June futures on the S&P/TSX index were down 0.1% Wednesday morning.

While the Bank of Canada is widely expected to hold its key interest rate at 4.5% for the rest of the year, some economists say still-high inflation and a resilient labour market may prompt at least one more rate hike. The policy decision is due at 10 a.m. ET.

In company news, National Bank of Canada resumed its coverage on bus maker NFI Group Inc with an "outperform" rating.

On the economic calendar, Statistics Canada reported this country's merchandise exports increased 2.5% in April, while imports edged down 0.2%. As a result, Canada's merchandise trade surplus with the world widened from $231 million in March to $1.9 billion in April.

The Bank of Canada rate decision is set for 10 a.m. EDT.

ON BAYSTREET

The TSX Venture Exchange grew 2.69 points Tuesday to 612.58.

ON WALLSTREET

Stocks futures were flat Wednesday after the S&P 500 notched its highest closing level of 2023.

Futures for the Dow Jones Industrials gained 16 points, or 0.1%, to 33,633.

Futures for the S&P 500 picked up 4.75 points, or 0.1%, to 4,294.50.

Futures for the NASDAQ Composite added 16.25 points, or 0.1%, to 14,602.75.

The tail-end of earnings season pressed on with results from Dave & Buster’s and Stitch Fix. Dave & Buster’s gained about 4%, while Stitch Fix added 8%.

Seven major S&P sectors finished Tuesday’s session with gains. The financial sector added 1.3%, boosted by regional banking stocks and bellwethers like Goldman Sachs and Morgan Stanley.

Tuesday’s uptrend trailed last week’s blowout rally. However, one observer opined continued modest gains instead of sharp pullbacks after a major upswing could signal more good news ahead.

A light period for economic data continues ahead of next week’s Federal Reserve policy meeting, with trade balance data due out before the bell Wednesday. Earnings from Campbell Soup and GameStop are also on deck.

In Japan, the Nikkei 225 dropped 1.8% Wednesday, while in Hong Kong, the Hang Seng index rose 0.8%.

Oil prices moved forward 82 cents to $72.56 U.S. a barrel.

Gold prices acquired $5.00 to $1,976.20. U.S. an ounce.