Stocks Enjoy Slim Gains

Equities in Canada’s largest market doggedly held onto gains Tuesday, as Prime Minister Mark Carney conferred in the Oval Office in Washington with President Donald TrumpThe TSX Composite Index held onto gains of 21.2 points to wrap up Tuesday at 24,974.72. The Canadian dollar marched 0.27 cents at 72.61 cents U.S. Gold and material stocks led the parade, as Centerra Gold sprinted $1.34, or 15%, to $10.27. Wesdome Gold captured $1.05, or 6.3%, to $17.72. Ero Copper tacked on $1.78, or 10.2%, to $19.31, while Orla Mining Company hiked $1.31, or 8.8%, to $16.13. Energy stocks reached for the sky, with International Petroleum climbing 62 cents, or 3.4%, to $18.95, while Vermilion Energy corralled 26 cents, or 3.1%, to $8.60. Health-care issues let the side down by the close, with Bausch Health Companies skidding 28 cents, or 4.1%, to $6.54, while Tilray lost a penny, or 1.7%, to 59 cents. Tech shares declined, as Shopify tumbled $5.94, or 4.4%, to $129.41, while Constellation Software let go of $52.96, or 1.1%, to $4,941.45. In real-estate units of Boardwalk REIT backpedaled $1.52, or 2.3%, to $64.77, while Canadian Apartment REIT retreated 87 cents, or 2%, to $42.43. Late on Monday, Trump said he plans to announce pharmaceutical tariffs over the next two weeks, adding to the levies rhetoric that has unsettled global financial markets in recent months.The governors of six U.S. states said on Monday they have invited Canadian provincial leaders to discuss the impact of the tariffs while being critical of the measures taken by the U.S. president.The focus will be on the Fed's two-day meeting, scheduled to start later in the day, with the central bank widely expected to stay put on interest rates. Investors will closely monitor policymakers' comments for any hints of potential monetary policy easing this year.In the economic docket, our merchandise trade, Canada's merchandise exports decreased 0.2% in March, while imports were down 1.5%. As a result, Canada's merchandise trade deficit with the world narrowed from $1.4 billion in February to $506 million in March.Moreover, the IVEY School of Business published its PMI Report Tuesday, which registered at 47.9 in April, down from a 51.3 reading in March, and way off the 63.0 level in April 2024.ON BAYSTREET The TSX Venture Exchange added 9.51 points, or 1.5%, to 655.55.Seven of the 12 subgroups were higher on the day, as gold surged 3.1%, materials climbed 2.8%, and energy rumbled 1.4%. The five laggards were weighed most by health-care, sinking 1.5%, information technology, down 1.2%, and real-estate, off 0.8%. ON WALLSTREET Stocks slipped Tuesday after President Donald Trump’s shaky commentary on global trade deals, dashing hopes that progress will soon be made on the tariff front. Investors also awaited the Federal Reserve’s policy decision.The Dow Jones Industrials stumbled 389.83 points, or 1%, to 40,829The S&P 500 index skidded 43.47 points to 5,606.91The NASDAQ Composite faded 154.58 points to 17,736.32. All three of the major averages posted back-to-back declines. Shares of Tesla shed 1.8% after the company’s new car sales in Britain and Germany fell to their lowest in more than two years in April, even though demand for electric vehicles grew. Goldman Sachs shares dipped 1.8%, pulling the Dow lower. Tech giants Nvidia and Meta Platforms also declined.Stocks wavered after Trump met with Prime Minister Mark Carney on Tuesday afternoon, marking the start of negotiations between the two leaders since Carney assumed office earlier last month.Trump during the meeting walked back on promises that trade deals are on the horizon, saying, “We don’t have to sign deals.” His statement contradicts Treasury Secretary Scott Bessent’s comments earlier this week. Bessent told the media on Monday that “we’re very close to some deals,” echoing comments Trump made himself on Sunday that agreements could come as early as this week.The Fed began its two-day policy meeting on Tuesday, with a decision scheduled for Wednesday. The central bank is expected to keep rates steady, with fed funds futures trading suggesting just a 3.1% chance of easing.Still, traders will be listening for Fed Chair Jerome Powell’s comments on his economic outlook.Prices for the 10-year Treasury gained ground, lowering yields to 4.31% from Monday’s 4.34%. Treasury prices and yields move in opposite directionsOil prices progressed $1.92 to $59.05 U.S. a barrel. Prices for gold skyrocketed $108.40 to $3,430.70 U.S.