June 17, 2021

Stocks Wallow by Noon

2 min read
Canada’s main stock index fell on Wednesday, triggered by fears of interest rate increases and...

Canada’s main stock index fell on Wednesday, triggered by fears of interest rate increases and higher bond yields after data showed stronger-than expected inflation in the United States.

The TSX lost 143.58 points by midday Wednesday at 19,130.46

The Canadian dollar fell 0.10 cents at 82.55 cents U.S.

The largest percentage gainer on the TSX was Intertape Polymer Group which jumped 7.4% after its quarterly results beat estimates.

Atco Ltd was the second largest percentage gainer, which rose 4.2% after its partnership with Suncor Energy to build a clean hydrogen project.

Element Fleet Management fell 7.8%, the most on the TSX, after its first-quarter earnings missed estimates.

The second biggest decliner was Hudbay Minerals, down 6.8% after posting a quarterly loss of 23 cents per share.

ON BAYSTREET

The TSX Venture Exchange tumbled 13.42 points, or 1.4%, to 917.03.

All but two of the 12 subgroups were down by noon, with materials down 1.7%, information technology off 1.6%, and health-care down 1.5%.

The two gainers were energy, shooting ahead 2.3%, and consumer staples, nicking up 0.3%.

ON WALLSTREET

U.S. stocks declined sharply on Wednesday, led to the downside by technology shares as key inflation data showed higher-than-expected price pressures.

The Dow Jones Industrials tumbled 454.15 points, or 1.3%, to 33,815.01, following its worst day since February on Tuesday

The S&P 500 lost 67.86, or 1.6%, to 4,084.26,

The NASDAQ stumbled 294.93 points, or 2.2%, to 13,094.81.

Strength in bank stocks and energy shares, which could do well in an inflationary environment, helped support the broader market. JPMorgan rose 1%, while Occidental Petroleum climbed 6.5%. Chevron also traded 2% higher.

Inflation accelerated at its fastest pace since 2008 last month with the Consumer Price Index spiking 4.2% from a year ago, compared to the Dow Jones estimate for a 3.6% increase. The monthly gain was 0.8%, versus the expected 0.2%.

Prices for 10-Year Treasurys lost sharply, raising yields to 1.69% from Tuesday’s 1.62%. Treasury prices and yields move in opposite directions.

Oil prices gained 70 cents to $65.98 U.S. a barrel.

Gold prices dropped $14.10 to $1,822 U.S. an ounce.

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