Stocks Give Up Gains Amid Inflation| MENAFN.COM

Monday, 16 May 2022 10:36 GMT

Stocks Give Up Gains Amid Inflation


(MENAFN- Baystreet.ca) Stocks Give up Gains Amid Inflation
Aurora, Canadian Tire in Focus








A topsy-turvy day ended firmly in negative country for stocks on both sides of the border, as investors tried to make sense of hot new inflation numbers out of the U.S.
The S&P/TSX Composite turned negative in the last hour and lost 52.81 points to conclude Wednesday at 19,387.25.
The Canadian dollar managed to gain 0.2 cents at 76.94 cents U.S.
Consumer discretionary stocks weighed the market down heaviest, as Canadian Tire sagged $7.10, or 4.2%, to $164.00, Spin Master slipped $1.70, or 3.9%, to $41.74.
Cannabis concerns pointed south, with Aurora Cannabis toppling 41 cents, or 12.1%, to $2.98, while Canopy Growth fell 59 cents, or 8.3%, to $6.50.
Tech stocks also took some blows, with HUT 8 Mining skidding 44 cents, or 12.1%, to $3.19, while Dye & Durham got rid of $1.31, or 9%, to $13.25.
Energy stocks tried to make up for the downward trend, with Paramount Resources strengthening $1.53, or 5%, to $32.11, while Enerplus tacking on 62 cents, or 4.1%, to $15.69.
Materials also moved into the green, with Endeavour Silver acquiring 30 cents, or 7.4%, to $4.34, while Ivanhoe Mines picked up 56 cents, or 6%, to $9.85.
ON BAYSTREET
The TSX Venture Exchange caved in 10.29 points, or 1.5%, to 700.90.
All but two of the 12 TSX subgroups had stumbled into the red by the closing bell, with consumer discretionary stocks falling 2.5%, health-care folding 2%, and information technology off 1.6%.
The two gainers were energy, up 1.9%, and materials up 0.5%.
ON WALLSTREET
Stocks dipped on Wednesday, stepping back earlier gains as investors continued to digest the latest U.S. inflation data.
The Dow Jones Industrials let gains slip by the closing bell, surrendering 326.63 points, or 1%, to 31,834.11.
The S&P 500 slid 65.87 points, or 1.7% to 3,935.18.
The NASDAQ Composite swooned 373.43 points, or 3.2%, to 11,364.24.
Tech shares struggled on Wednesday, tempering gains for the NASDAQ. Meta Platforms and Netflix each fell around 4% while Microsoft dipped 2% as investors continued their movement out of growth areas. Information technology and consumer discretionary sectors fell more than 3%, dragging down the S&P 500.
Meanwhile, Dow and Merck were the best-performing stocks in the Dow. IBM shares popped 1.7%. While most sectors dipped into negative territory, energy rose 2%. Utilities and materials also fought to stay positive.
April's consumer price index showed an 8.3% jump, higher than the 8.1% increase expected by economists polled by Dow Jones. The price surge remained near the 40-year high pace of 8.5% seen in March.
Core CPI, which does not include food and energy prices, gained 6.2% compared to expectations of 6%. On a monthly basis, headline CPI rose by 0.3% and core rose 0.6%.
On the earnings front, shares of Coinbase slumped more than 26% after the crypto exchange posted its latest quarterly results. Investors are looking ahead to reports from Walt Disney, Rivian and Beyond Meat after the bell.
Treasury prices gained, with yields slumping to 2.93% from Tuesday's 3%. Treasury prices and yields move in opposite directions.
Oil prices hiked $5.38 to $105.14 U.S. a barrel.
Gold prices recovered $11.40 to $1,852.40 U.S. an ounce.










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