Canada's main stock index moved lower midday Friday, as the closely-watched U.S. inflation print came in broadly in line with expectations, but sentiment remained fragile on pandemic jitters and uncertainty over U.S. monetary policy.
The S&P/TSX Composite reversed 88.16 points to move into noon hour EST Friday at 20,837.33
The Canadian dollar gave back 0.09 cents at 78.61 cents U.S.
Cannabis concerns weighed most heavily on the markets, with Tilray shedding 38 cents, or 3.3%, to $10.99, while Canopy Growth dropped 42 cents, or 3.2%, to $12.54.
In techs, Lightspeed POS lost $2.52, or 4.3%, to $55.75, while Nuvei Corporation handed back $2.96, or 3.8%, to $74.63.
In consumer staples, Sunopta ditched 32 cents, or 3.8%, to $8.10, while North West Company faltered 93 cents, or 2.5%, to $36.24.
Laurentian Bank gained $2.04, or 5.4%, to $40.08, the top of the index, after reporting earnings results, where it announced a 10% increase in quarterly dividends and plans of a share buyback.
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 dipped 2.82 points to 907.33.
All but one of the 12 TSX subgroups were lower by lunch hour, with health-care fading 1.9%, information technology down 1.1%, and consumer staples tripping 1%.
Only financials cleared breakeven, and only 0.1% at that.
ON WALLSTREET
The S&P 500 rose on Friday, extending Wall Street’s strong rally this week, despite inflation hitting a 39-year high.
The Dow Jones Industrials stayed afloat 72.59 points to 35,827.28
The S&P 500 index acquired 24.05 points to 4,691.50.
The NASDAQ remained positive 46.85 points at 15,564.22.
All three averages are up solidly for the week.
Oracle shares soared more than 13% on Friday, a day after the company posted better-than-expected quarterly results.
Airlines ticked lower on Friday. Southwest Airlines dropped 3.5% following another downgrade on Wall Street, this time from Goldman Sachs. United Airlines dropped 2% and Delta Air Lines dropped 2.5%.
Interactive fitness company Peloton added to its woes, slipping 4% 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.
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.
Prices for 10-year Treasurys gained some ground, lowering yields to 1.46% from Thursday’s 1.49%. Treasury prices and yields move in opposite directions.
Oil prices gained 15 cents to $71.09 U.S. a barrel.
Gold prices added $9.90 to $1,786.60 U.S. an ounce.
