Equities in Canada’s largest centre opened marginally lower on Tuesday after data showed domestic inflation cooled more than expected, bringing back some hopes of an early interest rate cut by the Bank of Canada.
The TSX Composite dipped 14.55 points to open Tuesday and the week at 21,241.06.
Corporate earnings continue to gain momentum with Canadian miners, including First Quantum amongst other companies, set to report their quarterly results during the week. First Quantum shares fell 13 cents, or 1%, to $11.99.
In corporate news, Loblaw said today it expected to invest more than $2 billion this year to create more than 7,500 jobs. Shares in the grocery giant raced higher $1.57, or 1.1%, to $139.33.
Markets were closed Monday for Family Day.
On the economic front, Statistics Canada says January’s consumer price index hiked 2.9% on a year-over-year basis in January, down from a 3.4% gain in December. On a seasonally adjusted monthly basis, the CPI fell 0.1% in January.
ON BAYSTREET
The TSX Venture Exchange slipped 3.01 points Tuesday to 553.75.
Seven of the 12 subgroups lost strength, with information technology sliding 1.5%, while industrials and real-estate each dropped 0.5%.
The five gainers were led by gold, brighter by 0.9%, while consumer staples hiked 0.8%, and communications clicked higher 0.5%.
ON WALLSTREET
Stocks were lower Tuesday as the market comes off its first losing week in more than a month and traders pore over the latest batch of earnings.
The Dow Jones Industrials fell 44.83 points to open Tuesday at 38,583.16.
The S&P 500 handed back 33.83 points to 4,971.74.
The NASDAQ index trudged 217.37 points, or 1.4%, to 15,558.28.
Home Depot shares were down more than 1% in early trading after the home improvement giant issued mixed full-year guidance.
Financial stocks were in view Tuesday following a blockbuster announcement that Capital One Financial is reportedly purchasing Discover Financial Services in an all-stock deal worth $35.3 billion, which is expected to close in late 2024 or early 2025. Capital One slumped more than 4% following the announcement, while Discover jumped 10.5%.
In separate deal news, Walmart announced it will acquire TV maker Vizio for $2.3 billion, or $11.50 a share, leading shares of Vizio to climb above 15%. Walmart shares added more than 5% after the big-box retailer also beat quarterly earnings and revenue expectations, fueled by double-digit growth in the company’s global e-commerce sales.
The moves follow a losing week on Wall Street after economic data raised concerns that the Federal Reserve may not begin cutting interest rates as soon, or by as much, as market participants expected this year.
Prices for the 10-year Treasury regained lost strength, dropping yields to 4.25% from Friday’s 4.29%. Treasury prices and yields move in opposite directions.
Oil prices crawled lower 39 cents to $78.80 U.S. a barrel.
Gold prices climbed $15.30 to $2,039.40.
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