Canada's main stock index fell on Tuesday, led by losses in the materials sector, while investors were disappointed that core inflation rose more than expected in December ahead of next week's interest rate decision by the Bank of Canada.
The TSX Composite came off its lows of the morning, but remained negative 117.46 points midday Tuesday to 20,944.42.
The Canadian dollar backed off 0.16 cents to 74.26 cents U.S.
Among individual stocks, Barrick Gold slumped $1.42, or 6%, to $22.21 after the company reported preliminary gold output of 4.05 mln ounces in the financial year 2023, below its forecast and analysts' estimates of 4.16 million ounces.
First Quantum Minerals fell 33 cents, or 2.5%, to $13.07, after the miner said it plans to conserve capital after it was forced to halt production at its Cobre Panama copper mine.
On the economic board, Statistics Canada reported the Consumer Price Index rose 3.4% on a year-over-year basis in December, following a 3.1% increase in November. On a seasonally adjusted monthly basis, the CPI rose 0.3% in December.
Canada Mortgage and Housing Corporation told us housing starts registered 249,300 in December, compared to 212,600 in November.
ON BAYSTREET
The TSX Venture Exchange sagged 1.28 points to pause for lunch Tuesday at 563.14.
All but two 12 subgroups were lower noon hour Tuesday, gold shedding 2.2%, materials down 1.6%, and energy off 1.5%.
The two gainers were communications, ahead 0.2%, and health-care, eking up 0.1%.
ON WALLSTREET
The Dow Jones Industrial Average fell Tuesday as rates ticked higher and Wall Street pored through the latest batch of fourth quarter earnings.
Investors also awaited more data that can give better glimpse into the state of the American consumer.
The 30-stock index plunged 238.46 points at 37,354.52.
The S&P 500 sank 18.77 points to 4,765.06.
The NASDAQ fell 50.1 points to 14,922.66.
Boeing shares tumbled more than 7% after Wells Fargo downgraded the company to equal weight from overweight, amid ongoing troubles with its 737 Max 9 model. Meanwhile, AMD shares jumped 7.8% on Tuesday following upbeat analyst commentary on semiconductor demand. The chipmaker trying to catch Nvidia in the A.I. race rose to a new 52-week high. AMD is scheduled to report its quarterly results on Jan. 30.
Several major banks released their quarterly earnings Tuesday morning. Goldman Sachs reported better-than-expected profit and revenue, while Morgan Stanley posted a revenue beat in the fourth quarter. Shares of Goldman recovered 1.6% while Morgan slipped 4%.
Roughly 30 S&P 500 companies have reported calendar fourth-quarter results thus far. Of those, 78% have beaten earnings expectations
Investors are also looking ahead to December retail sales data out Wednesday, which could fuel recessionary fears and concerns about economic growth if U.S. consumer spending sees a cooldown.
Wall Street is coming off its 10th positive week in 11. The Dow and S&P 500 gained 0.3% and 1.8%, respectively, last week. The Nasdaq jumped 3% for its biggest weekly gain since November.
Prices for the 10-year Treasury slipped, raising yields to 4.01% from Friday’s 3.94%. Treasury prices and yields move in opposite directions.
Oil prices subtracted 52 cents to $72.16 U.S. a barrel.
Gold prices dipped $10.90 to $2,040.70.
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