Markets in Canada’s largest centre were flat to start out on Friday as the closely-watched U.S. inflation print came in broadly in line with expectations and as oil prices recovered, but sentiment remained fragile on worries over the COVID-19 pandemic.
The S&P/TSX Composite dipped 2.78 points to open the week’s last session at 20,922.71
The Canadian dollar gave back 0.09 cents at 78.61 cents U.S.
CIBC raised the target price on Altus Group to $73.00 from $63.00. Altus shares gained 78 cents, or 1.1%, to $69.01.
JP Morgan cut the rating on B2Gold to underweight from neutral. B2Gold slipped three cents to $4.70.
JP Morgan cut the rating on Stelco Holdings to neutral from overweight. Stelco shares lost $1.49, or 3.7%, to $38.53.
The Bank of Canada will reportedly leave its inflation target at 2% in a framework renewal, shunning a major shift in monetary policy strategy similar to the one adopted by the U.S. Federal Reserve last year.
Canada’s Energy Regulator said on Thursday oil output in Canada, the world's fourth-largest producer, will climb over the next decade and peak at 5.8 million barrels per day (bpd) in 2032, seven years sooner than previously forecast.
ON BAYSTREET
The TSX Venture Exchange recovered 2.46 points to 912.61.
Six of the 12 TSX subgroups began the day lower, with energy and gold each surrendering 0.8%, and health-care down 0.5%.
The five gainers were led by industrials, financials, and real-estate, each up 0.2%. Communications were unchanged in the first hour of trade.
ON WALLSTREET
The major averages in the States rose on Friday, extending Wall Street’s strong rally this week, despite inflation hitting a 39-year high.
The Dow Jones Industrials ballooned 126.11 points to 35,880.80
The S&P 500 index acquired 27.75 points to 4,695.20.
The NASDAQ jumped 99.54 points at 15,616.91.
Nevertheless, they all are on track to finish the week higher. The Dow is up 3.8% this week. The S&P 500 and NASDAQ have risen about 3.5% each since Monday.
Inflation soared 6.8% year-over-year in November to highest rate since 1982, the U.S. Labor Department said Friday. The print came in slightly higher than the 6.7% Dow Jones estimate. The consumer price index, which measures the cost of a wide-ranging basket of goods, rose 0.8% for the month.
Core CPI, which excludes food and energy prices, rose 0.5% for the month and 4.9% from a year ago, in line with estimates.
Oracle shares soared more than 19%, a day after the company posted better-than-expected quarterly results.
Airlines ticked lower on Friday. Southwest Airlines dropped 2.5% following another downgrade on Wall Street, this time from Goldman Sachs. United Airlines dropped 1% and Delta Air Lines dropped 1.2%.
Interactive fitness company Peloton added to its woes, slipping 1% after tumbling 11.3% on Thursday. Credit Suisse cut its view on the company, saying a return to gyms and shifts in consumer spending will weigh on profitability.
Prices for 10-year Treasurys gained some ground, lowering yields to 1.47% from Thursday’s 1.49%. Treasury prices and yields move in opposite directions.
Oil prices picked up 54 cents to $71.49 U.S. a barrel.
Gold prices added $5.10 to $1,781.9 0 U.S. an ounce.
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