TSX Retreats After Scaling New High, Ends On Weak Note

(RTTNews) - After a slightly weak start and a subsequent good spell in positive territory that lasted till an hour past noon, the Canadian market turned easy and eventually ended on a weak note on Thursday.

While some upbeat earnings updates and optimism about growth pushed up the market, data showing a bigger than expected increase in U.S. consumer price growth fueled concerns about sharper rate hikes by the Federal Reserve and rendered the mood cautious.

The Labor Department said its consumer price index climbed by 0.6% in January, matching the upwardly revised advance seen in December. Economists had expected consumer prices to rise by 0.5%, matching the increase originally reported for the previous month.

With the slightly bigger than expected monthly increase, the annual rate of growth in consumer prices accelerated to 7.5% in January, the biggest spike since February of 1982.

The report showed core consumer prices, which exclude food and energy prices, also advanced by 0.6% in January, matching the increase seen in December. Economists had expected core prices to rise by 0.5%.

The annual rate of growth in core prices accelerated to 6% in January from 5.5% in December, showing the biggest jump since August of 1982.

The benchmark S&P/TSX Composite Index, which climbed to 21,784.69, a new record high, ended the day with a loss of 72.47 points or 0.34% at 21,531.72.

Technology and consumer discretionary stocks were the major losers. Several stocks from consumer staples and industrials sectors too ended notably lower.

Among technology stocks, Tecsys Inc (TCS.TO) shed more than 5%. Kinaxis Inc (KXS.TO), Enghouse Systems (ENGH.TO) and Shopify Inc (SHOP.TO) ended lower by 3 to 4%.

Canada Goose Holdings (GOOS.TO), down 16%, was the biggest loser in the consumer discretionary space. The stock tumbled after the company cut its annual forecast due to lower sales in Asia and Europe. The company said it now sees fiscal 2022 revenue in the range of C$1.09 billion to C$1.11 billion ($860 million to $876 million), down from a prior forecast of C$1.13 billion to C$1.18 billion.

Precision Drilling Corp. (PD.TO) gained nearly 3%. The company reported Thursday that its fourth-quarter net loss narrowed to C$27.34 million or C$2.05 per share from C$37.52 million or C$2.74 per share in the prior-year quarter. The stock is gaining more than 3%.

Brookfield Asset Management (BAM.A.TO) shares gained about 5.5%. The company reported net income of $3.46 billion for the quarter ended December 31, 2021, compared to net income of $1.82 billion in the year-ago quarter.