Canadian Market Looks Headed For Weak Close

(RTTNews) - The Canadian market is exhibiting weakness on Tuesday, snapping a seven-session winning streak, with weak GDP data, concerns about inflation and looming interest rate hikes contributing to the negative sentiment.

Healthcare and energy stocks are the major losers. Technology and materials shares are also broadly lower, while stocks from the rest of the sectors are turning in a mixed performance.

The benchmark S&P/TSX Composite Index, which tumbled to 20,697.64 after opening with a negative gap of nearly 85 points at 20,834.03, was down 100.02 points or about 0.5% at 20,819.38 with about 90 minutes to go for the closing bell.

Data released by Statistics Canada before the opening bell this morning showed the pace of economic growth in Canada slowed in the first quarter compared with the end of 2021.

The data said real gross domestic product grew at an annualized rate of 3.1% in the first quarter, helped by business investment and household spending. That was down from an annualized rate of 6.6% in the fourth quarter of 2021 as export volumes dropped 2.4% for the quarter, following two consecutive quarterly increases, due in part to decreased trade in energy products.

Lithium Americas Corp (LAC.TO) is down 13.5%. Stelco Holdings (STLC.TO) is plunging more than 7%, while Boyd Group Services (BYD.TO), Nuvei Corporation (NVEI.TO), Teck Resources (TECK.B.TO), Methanex Corporation (MX.TO), BRP Inc (DOO.TO) and Precision Drilling Corporation (PD.TO) are down 3 to 5%.

Descartes Systems Group (DSG.TO), Shopify Inc (SHOP.TO) and Waste Connections (WCN.TO) are also notably lower.

Nutrien (NTR.TO) is climbing up nearly 5%. Quebecor (QBR.A.TO), Linamar Corporation (LNR.TO), George Weston (WN.TO), Loblaw Companies (L.TO), Canadian Pacific Railway (CP.TO) and Canadian Tire Corporation (CTC.TO) are gaining 1 to 4.5%.