TSX Takes Hit in First Hour
The TSX Composite stumbled 337.97 points, or 1.6%, to open Tuesday at 20,729,33.
The Canadian dollar fell 0.53 cents at 73.79 cents U.S.
Corporate earnings in Canada are also picking up momentum with Manulife and Air Canada among others, set to report their quarterly results this week. Manulife dipped 28 cents to $30.18, while Air Canada fell 15 cents to $18.19.
Blackberry said it was targeting an additional increase of $100 million in its annual profit as the company slashes costs, including workforce restructuring. The company once known as Research in Motion began the day down 18 cents, or 4.8%, to $3.61.
Tim Hortons-parent Restaurant Brands International edged past analysts' estimates for its fourth-quarter revenue on Tuesday. RBI shares tumbled $3.88, or 3.7%, to $101.50.
ON BAYSTREET
The TSX Venture Exchange retreated 5.73 points, or 1%, to 543.19.
All 12 subgroups were in the red, with information technology, down 3.2%, gold, dulling in price by 2.9%, and materials, off 2.6%.
ON WALLSTREET
Stocks dropped on Tuesday after hotter-than-expected inflation data for January spiked Treasury yields and raised doubts that the Federal Reserve would be able to cut rates several times this year, a key part of the bull case for the equity market.
The Dow Jones Industrials swooned 532.48 points, or 1.4%, to open Tuesday at 38,264.90. It’s the biggest drop since March 2023, when it fell 1.6%
The S&P 500 index slid 73.66 points, or 1.5%, to 4,948.18.
The NASDAQ index dumped 303.18 points, or 1.9%, to 15,639.37.
In corporate news, JetBlue Airways spiked 12% after activist investor Carl Icahn reported a nearly 10% stake in the airline. Toymaker Hasbro lost 2% after missing analyst expectations for the fourth quarter. Shares of Avis Budget Group slipped 10% on the back of disappointing fourth-quarter revenue.
The consumer price index rose 0.3% in January from December. CPI was up 3.1% on an annual basis. Economists polled by Dow Jones expected CPI to have increased by 0.2% month over month in January and 2.9% from a year earlier.
Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago. Core CPI was expected to have increased 0.3% in January and 3.7% from a year earlier, respectively.
Prices for the 10-year Treasury withered, raising yields to 4.28% from Monday’s 4.19%. Treasury prices and yields move in opposite directions.
Oil prices jumped 38 cents to $77.30 U.S. a barrel.
Gold prices lost $28.60 to $2,004.40.
Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.
