Stocks Wither Following Economic Data
The TSX fell 52.74 points to open mid-week Wednesday at 19,701.40.
The Canadian dollar recovered 0.09 cents to 75.69 cents U.S.
On the economic slate, Statistics Canada reported retail sales increased 1.1% to $65.9 billion in April. Sales increased in eight of nine subsectors and were led by increases at general merchandise retailers and food and beverage retailers.
The agency’s new housing price increased 0.1% month over month in May, its first increase since August 2022.
All but three of the 12 TSX subgroups were negative in the first hour, with gold dulling in price 1.3%, real-estate down 1%, and information technology off 0.8%.
The three gainers proved to be energy, up 0.5%, consumer staples, better by 0.2%, and industrials, eking ahead 0.1%.
ON BAYSTREET
The TSX Venture Exchange dropped 4.01 points to 608.74.
ON WALLSTREET
U.S. stocks were lower on Wednesday as investors took a breather from last week’s market rally, and weighed Federal Reserve Chair Jerome Powell’s latest comments on inflation.
The Dow Jones Industrials handed back 126.65 points to commence Wednesday at 33,927.22.
The S&P 500 subtracted 21.94 points to 4,366.77.
The NASDAQ index retreated 114.44 points to 13,552.85.
FedEx shares fell 2.4% after the shipping giant posted weaker-than-expected revenue for its most recent quarter. Winnebago shares slid more than 5% after the motorhome maker missed third-quarter revenue estimates.
Powell said Wednesday that more rate hikes are likely ahead as the central bank tries to combat inflation. Those comments come after the conclusion of last week’s meeting when the central bank held off from raising rates after 10 straight consecutive hikes. However, officials indicated there could be two more quarter-percentage point moves on the horizon this year.
Prices for the 10-year Treasury lost ground, raising yields to 3.78% from Tuesday’s 3.73%. Treasury prices and yields move in opposite directions.
Oil prices gained 74 cents to $71.93 U.S. a barrel.
Gold prices dulled $10.50 to $1,937.20 U.S. an ounce.
Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.
