Wall Street dips in premarket but remains near record highs as another raft of earnings pours in
Wall Street dipped in premarket trading Tuesday, but indexes remained near record highs on another big day for corporate earnings reports.
Futures for the S&P 500 lost 0.1 per cent before the bell, while futures for the Dow Jones Industrial Average and Nasdaq were each off 0.2 per cent.
Homebuilders were the early winners, with D.R. Horton climbing nearly seven per cent after easily surpassing Wall Street's third-quarter sales and profit expectations. PulteGroup also topped analysts' forecasts, rising 1.7 per cent, while Lennar rode the wave of optimism and was up 2.1 per cent.
General Motors shed 3.6 per cent in the early going after the automaker reported that its profit and revenue declined from the previous quarter. GM maintained its full-year guidance from May, however that forecast was cut as the company braced for a potential impact from auto tariffs as high as US$5 billion in 2025.
Shares of Coca-Cola Co. were largely unchanged after the soda giant beat Wall Street profit expectations but fell a tad short on revenue projections. Coke said that its pricing rose six per cent for the April-June period, making up for the one per cent decline in case volumes both globally and in North America.
Elsewhere, in Europe at midday, Germany's DAX lost 1.1 per cent, the CAC 40 in Paris gave up 0.9 per cent and Britain's FTSE 100 was nearly unchanged.
In Asian trading, Japan's benchmark surged and then fell back as it reopened from a holiday Monday following the ruling coalition's loss of its upper house majority in Sunday's election.
The Nikkei 225 shed 0.1 per cent to 39,774.92.
Analysts said the market initially climbed as investors were relieved that Prime Minister Shigeru Ishiba vowed to stay in office despite the setback. But the election's outcome has added to political uncertainty and left his government without the heft needed to push through legislation.
A breakthrough in trade talks with the U.S. might win Ishiba a reprieve, but so far there's been scant sign of progress in negotiating away the threat of higher tariffs on Japan's exports to the U.S. beginning Aug. 1.
'Relief may be fleeting. Ishiba's claim to leadership now rests on political duct tape, and history isn't on his side. The last three LDP leaders who lost the upper house didn't last two months,' Stephen Innes of SPI Asset Management said in a commentary.
Elsewhere, Hong Kong's Hang Seng rose 0.5 per cent to 25,130.03, while the Shanghai Composite index advanced 0.6 per cent to 3,581.86.
South Korea's Kospi sank 1.3 per cent to 3,169.94, with investors concerned over next week's deadline for making a deal with U.S. President Donald Trump or facing 25 per cent tariffs on all the country's exports to the U.S.
Many of Trump's stiff proposed tariffs are paused after he extended the deadline to Aug. 1 to allow more time to reach potential trade deals that could lower those rates.
Australia's S&P/ASX 200 added 0.1 per cent to 8,677.20. India's Sensex was flat.
In Thailand, the SET sank 1.1 per cent after the government named Vitai Ratanakorn as the new future governor of the central bank. He is viewed as likely to be less independent than the current governor, raising concerns about the bank's independence, analysts said.
In energy trading, U.S. benchmark crude oil lost 61 cents to $65.34 per barrel, while Brent crude, the international standard, gave up 65 cents to $68.56 per barrel.
The U.S. dollar inched up to 147.40 Japanese yen from 147.38 yen. The euro gained to $1.1701 from $1.1696.
By Elaine Kurtenbach and Matt Ott
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Globe and Mail
2 hours ago
- Globe and Mail
Ottawa is quietly working on launching a new entity it hopes will be key to housing affordability
Prime Minister Mark Carney's government has been quiet since the federal election about the housing crisis, the same issue that contributed to the Liberals' fading popularity under their previous leader. Behind the scenes, however, housing stakeholders are fielding a flurry of calls from government officials seeking their advice on the creation of Build Canada Homes, a new federal entity that Mr. Carney has said will get the government back in the business of homebuilding. His ambitions, announced during his campaign, were big: act as a developer to build affordable housing, spur innovation in the housing sector and offer low-cost financing to affordable-housing builders. However, trade turmoil has quickly overshadowed housing affordability in the political arena, creating a void of information on how the federal government plans to get more homes built. Renée LeBlanc Proctor, a spokesperson for Housing Minister Gregor Robertson, said in a statement that the government was on track to launch the initiative this fall and stakeholders would learn more soon. But questions still linger about how the new entity will function, and what its creation will mean for existing programs. Meanwhile, some leaders in the housing policy and advocacy spaces are worried that if the government doesn't move quickly to spur more supply, the economic slowdown caused by U.S. tariffs will set plans further behind. Mr. Carney promised the initiative would be a 'lean, mission-driven organization' focused on building affordable housing by leveraging public lands and partnering with the private sector. He pitched it as a central piece of the government's plan to double the rate of homebuilding in the country. Opinion: Ottawa must resist the temptation to fiddle with CMHC amid housing market slump Raymond Sullivan, executive director of the Canadian Housing and Renewal Association, an organization that represents the social and non-profit housing sector, said he's encouraged to see affordable housing at the heart of Build Canada Homes' mission. But given how long it can take to set up a new bureaucracy, Mr. Sullivan said the government should roll out elements of Build Canada Homes as they become ready, rather than wait for the entire organization to be set up. 'We're not going to have a cake that's fully baked and ready to launch in the fall. So let's focus on the pieces that are already available to us,' he said. University of Toronto senior housing researcher Carolyn Whitzman said there are two versions of the initiative that are being discussed in policy circles: one that is limited in scope and focused primarily on partnering with developers to build affordable housing on public land, and one that also has a larger mandate encompassing financing and innovation programs. Figuring out what exactly Build Canada Homes will be responsible for and how it will distinguish itself from organizations such as the Canada Mortgage and Housing Corporation appear to be some of the details Ottawa is trying to hammer out, according to stakeholders consulted by the government. Mr. Sullivan said Ottawa should ensure social-housing projects in the pipeline are not affected by the organization's creation. 'We don't want to see any kind of interruption. We need to know that the government is there as a partner with us, not sitting back for a year building a new structure, but ready to work on things that are ready,' he said. Real estate is not a financial slam dunk, Canadians are learning the hard way Some housing experts and stakeholders are skeptical that Build Canada Homes will be a sufficient solution to the housing shortage. The government has had mixed success with its housing initiatives in the past — such as the slow progress it's made on converting unused office space into affordable housing recently flagged by the Auditor-General — and a new organization will likely take time to begin delivering results. 'They've talked about partnering with industry to actually build the units, which will be important, because governments around the world have proven that they can't properly get into the actual construction game,' said Kevin Lee, CEO of the Canadian Home Builders' Association. Mr. Lee said building affordable housing on public lands also won't be enough to get the government to its goal of 500,000 housing starts a year. (The seasonally adjusted annual rate of housing starts was 283,734 units in June.) Meanwhile, the private and social-housing sectors are impatient for clarity on other policy fronts, including the promised GST rebate for first-time homebuyers. Mr. Lee said the delay is affecting demand at a time when the economy is already slowing down the housing market. 'Having something like that that was promised not get turned into official policy has really thrown another wrench into the system,' said Mr. Lee. Proposed GST rebate for first-time homebuyers could offer average relief of $27,000, PBO says Finance Minister François-Philippe Champagne introduced legislation in late May to provide the GST rebates. But unlike the government's 'One Canadian Economy' legislation, which was rushed through the House of Commons and Senate during the four-week sitting, the bill on GST rebates must wait for Parliament to return in the fall. The government's prioritization of fast-tracking approvals for major projects and managing trade tensions with the U.S. reflects a shift in the public's priorities, as well. Polling by Abacus Data shows U.S. President Donald Trump is the second-most important issue to Canadians, with housing and the economy nearly tied for third. (The rising cost of living – which includes housing costs – was the No. 1 issue.) Mike Moffatt, founding director of the University of Ottawa's Missing Middle Initiative, said the shift in priorities is understandable, though he warned housing could become of greater importance again. 'The government would be doing itself favours if they do the legwork now, because if it becomes a big concern, or the primary concern for Canadians, again, it might be too late to really address that,' Mr. Moffatt said. The trade war with the United States also has repercussions for the housing market, which won't make the government's job of spurring homebuilding any easier. RBC assistant chief economist Robert Hogue said the housing market is slowing down in part as 'payback for an exceptionally strong period' after the onset of the COVID-19 pandemic. 'However, the trade war kind of put a damper on things and really affected confidence in most of Canada, and that's when we saw, through the winter and spring, a lot of potential home buyers saying, 'might as well sit it out,'' he said. These three housing markets are bucking national trends, and Trump is one reason why 'The challenge is to get more demand for new construction at a time when building costs have gone up and and you've got now more inventory in the existing home market, in many places around Canada.' Mr. Moffatt said as the government works on setting up the organization, it needs to roll out policies that will have a more immediate effect on the housing market. For example, the government could expand its proposed GST rebate so that all homebuyers of a primary residence are eligible, he said. Ontario Premier Doug Ford said in the spring his government would match the tax break if it were extended to all homebuyers. Prof. Whitzman said social-housing builders also are seeking information on a number of programs, including the affordable housing fund, which provided capital for the repair of existing affordable and community housing. That fund recently ran out of money, leaving its future in limbo. 'I'm not saying Build Canada Homes is a bad idea,' she said. 'But there's stuff that could be happening tomorrow and there's stuff that should be happening tomorrow.'
National Post
3 hours ago
- National Post
'They were just hell-bent': Mayor battling Ottawa over 'really left' housing mandate
Article content The province of Ontario already mandates three buildings on a residential lot, the bureaucrats told Drew, so what's the big deal about adding four? His rebuttal: 'Then what's the big deal about adding five? I mean, where does it stop? And when do you get to say enough's enough; that we have processes in place that allow us to look at sewer capacity, that allow us to deal with parking, that allow us to deal with garbage control? Article content 'We hope to work with the federal government — who wants to truly be a partner in helping build more housing — without jamming down our throats something residents don't want,' pleads the veteran mayor. Article content To that end, after Carney took power, the mayor sent a letter — as yet, unanswered — to the government, asking for a re-evaluation of this rigid approach to the housing accelerator fund. Article content Drew has previously worked with Gregor Robertson, former mayor of Vancouver and now Carney's point man on housing and infrastructure. He's optimistic Robertson will bring practical insights about the correlation between affordable housing and density to the federal table. I noted that if increased density brought affordability, Vancouver would be cheap by now. Article content 'I think the benefit of having a fresh government,' Drew offers, 'is they can come in and say, 'Listen, we looked at the program … while we appreciate the intention the past government was trying to employ here, we think there's a better way of working with municipalities, allowing them the flexibility to determine how to accomplish the goal. We'll set the goals and then we'll hold them to account.'' Article content Drew's suggestion echoes what I heard Pierre Poilievre say in the last election campaign. But, we agree, there's nothing wrong with the Liberals stealing good ideas from the Conservatives. Article content While the housing accelerator initiative is the focus of Windsor council's attention, Drew's not happy these blanket zoning mandates are being applied to other programs — including federal public transit and housing infrastructure funding available to municipalities. Article content 'And it gets even better,' Drew continues, his tone increasingly agitated. 'Guess who doesn't have to do this? The entire province of Quebec. They have an exemption. They carved out a different pathway … four units as of right was not a requirement in the province of Quebec.' Indeed, Premier Francois Legault trumpeted his $900-million deal with Ottawa as being 'free of conditions.' Article content The economy of Windsor has taken a sharp downturn in the past 18 months. Before Donald Trump's re-election, the Conference Board of Canada predicted Windsor would be the fastest-growing city by GDP of the 24 big cities they studied. 'We had the battery factory well under construction,' Drew reports, 'and we've got the Gordie Howe bridge that is winding up construction and should open officially the first week of December this year. Article content 'But the reality is, there's a lot of fear here,' he shares. 'Our unemployment rate was almost 11 per cent and people are in rainy day mode. People are pinching their pennies … The housing market is very slow and everyone's just in a wait-and-see mode.' Article content Property developers are on standby, he says, waiting to see if the Carney Liberals will cut development charges by 50 per cent at the municipal level (as promised during the election campaign), and whether the feds will offer low-interest loans for multi-storey residential units. Article content
CTV News
3 hours ago
- CTV News
As Trump's trade deal deadline approaches, his tariffs face legal pushback in court
U.S. President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, on April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein, File) WASHINGTON — Donald Trump's plan to realign global trade faces its latest legal barrier this week in a federal appeals court — and Canada is bracing for the U.S. president to follow through on his threat to impose higher tariffs. While Trump set an Aug. 1 deadline for countries to make trade deals with the United States, the president's ultimatum has so far resulted in only a handful of frameworks for trade agreements. Deals have been announced for Japan, Vietnam, Indonesia, the Philippines and the United Kingdom — but Trump indicated last week that an agreement with Canada is far from complete. 'We don't have a deal with Canada, we haven't been focused on it,' Trump told reporters Friday. Trump sent a letter to Prime Minister Mark Carney threatening to impose 35 per cent tariffs if Canada doesn't make a trade deal by the deadline. The White House has said those duties would not apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade. Canadian officials have also downplayed expectations of a new economic and security agreement materializing by Friday. 'We'll use all the time that's necessary,' Carney said last week. Countries around the world will also be watching as Trump's use of a national security statute to hit nations with tariffs faces scrutiny in the United States Court of Appeals for the Federal Circuit. The U.S. Court of International Trade ruled in May that Trump does not have the authority to wield tariffs on nearly every country through the use of the International Economic Emergency Powers Act of 1977. The act, usually referred to by the acronym IEEPA, gives the U.S. president authority to control economic transactions after declaring an emergency. No previous president had ever used it for tariffs and the U.S. Constitution gives power over taxes and tariffs to Congress. The Trump administration quickly appealed the lower court's ruling on the so-called 'Liberation Day' and fentanyl-related tariffs and arguments are set to be heard in the appeal court on Thursday. The hearing combines two different cases that were pushing against Trump's tariffs. One involves five American small businesses arguing specifically against Trump's worldwide tariffs, and the other came from 12 states pushing back on both the 'Liberation Day' duties and the fentanyl-related tariffs. George Mason University law professor Ilya Somin called Trump's tariff actions a 'massive power grab.' Somin, along with the Liberty Justice Center, is representing the American small businesses. 'We are hopeful — we can't know for sure obviously — we are hopeful that we will continue to prevail in court,' Somin said. Somin said they are arguing that IEEPA does not 'give the president the power to impose any tariff he wants, on any nation, for any reason, for as long as he wants, whenever he feels like it.' He added that 'the law also says there must be an emergency and an unusual and extraordinary threat to American security or the economy' — and neither the flow of fentanyl from Canada nor a trade deficit meet that definition. U.S. government data shows a minuscule volume of fentanyl is seized at the northern border. The White House has said the Trump administration is legally using powers granted to the executive branch by the Constitution and Congress to address America's 'national emergencies of persistent goods trade deficits and drug trafficking.' There have been 18 amicus briefs — a legal submission from a group that's not party to the action — filed in support of the small businesses and states pushing against Trump's tariffs. Two were filed in support of the Trump administration's actions. Brent Skorup, a legal fellow at the Washington-based Cato Institute, said the Trump administration is taking a vague statute and claiming powers never deployed by a president before. The Cato Institute submitted a brief that argued 'the Constitution specifies that Congress has the power to set tariffs and duties.' Skorup said there are serious issues with the Trump administration's interpretation of IEEPA. 'We don't want power consolidated into a single king or president,' he said. It's expected the appeals court will expedite its ruling. Even if it rules against the duties, however, they may not be immediately lifted. White House Press Secretary Karoline Leavitt has said the Supreme Court should 'put an end to this.' There are at least eight lawsuits challenging the tariffs. Canada is also being hit with tariffs on steel, aluminum and automobiles. Trump used different powers under the Trade Expansion Act of 1962 to enact those duties. This report by The Canadian Press was first published July 27, 2025. Kelly Geraldine Malone, The Canadian Press
