Stocks Falter Midday


(MENAFN- Baystreet.ca) Stocks Falter Midday
TC, CGI in Focus








Canada's main stock index fell on Wednesday, dragged down by commodity-linked stocks ahead of the U.S. Federal Reserve's monetary policy decision expected to result in an interest rate hike.
The TSX fell 113.43 points to head into noon hour at 20,653.95.
The Canadian dollar docked 0.09 cents at 75.03 cents U.S.
Among individual stocks, CGI gained $6.12, or 5.4% to $120.16, after the information technology company reported better-than-expected
first quarter earnings.
TC Energy slumped $4.05, or 7.1%, to $53.28, after raising its Coastal GasLink pipeline costs by 30%.
On the economic calendar, the S&P Global Canada Manufacturing Purchasing Managers' Index recorded 51.0 in January, up from 49.2 at the end of 2022.
ON BAYSTREET
The TSX Venture Exchange dropped 3.82 points to 622.35.
Eight of the 12 subgroups lost ground, as energy moved backward 2.5%, consumer staples lost 1.1%, and utilities sank 0.5%.
The four laggards were led by information technology, picking up 1.3%, consumer discretionary stocks, up 0.5%. and communications, up 0.4%.
ON WALLSTREET
Stocks slipped Wednesday as investors awaited the latest policy decision from the Federal Reserve.
The Dow Jones Industrials tumbled 314.83 points to pause for lunch hour Wednesday at 33,771.21.
The S&P 500 fell 19.64 points to 4,056.96.
The NASDAQ Composite dropped 41.49 points to 11,543.06.
Corporate earnings season continued. Peloton shares rose more than 8% after the fitness equipment company said its net loss narrowed year over year. Advanced Micro Devices shares gained more than 3% after the semiconductor company reported a fourth-quarter earnings beat.
Meanwhile, Snap shares dropped more than 11% after the social media company posted a disappointing quarterly revenue.
The Fed at 2 p.m. ET will announce how much it is increasing interest rates in its latest effort to tame high inflation, with market participants expecting a 25 basis point bump from the central bank. The Fed's announcement will be followed by comments from Chair Jerome Powell.
Some indicators that inflation is easing in the broader economy have investors hoping for a more dovish tone from the Fed. On Tuesday, the employment cost index, a measure of wage increases, showed compensation rose 1% in the fourth quarter, less than the 1.1% estimate by Dow Jones.
Prices for the 10-year Treasury regained lost strength, lowering yields to 3.47% from Tuesday's 3.50%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.52 to $77.35 U.S. a barrel.
Gold prices skidded $4.80 to $1,940.50 U.S. an ounce.










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