TSX Lets Go of Some Gains by Noon Hour

Canada’s main stock index rose on Wednesday, tracking Wall Street gains after U.S. consumer price data came mostly in line with expectations, while commodity-linked stocks boosted the sentiment further.

The S&P/TSX Composite remained buoyant 58.96 points to move into Wednesday’s hour at 21,333.77.

The Canadian dollar hiked 0.44 cents to 79.95 cents U.S.

Energy led the upward charge, with Arc Resources ahead 54 cents, or 4.2%, to $13.52, while Peyto Exploration moved higher 55 cents, or 5.3%, to $10.97.

Among health-care issues, Tilray lost 34 cents, or 3.7%, to $8.96, while Canopy Growth docked 34 cents, or 3%, to $11.13.

ON BAYSTREET

The TSX Venture Exchange hung onto 5.63 points to 916.30.

Seven of the 12 TSX subgroups had turned negative midday, weighed most by health-care, down 2.2%, gold, off 1%, and consumer discretionary stocks, sliding 0.9%.

The five gainers were led by energy, up 1.4%, materials, up 0.7%, and financials, picking up 0.4%.

ON WALLSTREET

Stocks in New York were calm approaching lunch hour Wednesday, as investors digested, and then largely ignored, inflation data passed down earlier in the day.

The Dow Jones Industrials came off its highs of the morning, but remained positive 45.66 points to 36,297.68.

The S&P 500 gained 12.4 points to 4,725.47

The NASDAQ Composite stayed solvent 37.76 points to 15,191.21.

Stocks tied to economic growth were some of the stronger performers, with chemical company Mosaic rising more than 2% and Freeport-McMoRan jumping 3.7%. Software giant Microsoft and Google-parent Alphabet each added more than 1%.

Dish Network rose 3% following news that the company is again in merger talks with DirectTV, according to sources who spoke with the New York Post. On the downside, Biogen shares tumbled nearly 9% following news that Medicare will only cover the cost for the company’s Alzheimer’s drug Aduhelm for patients with early-stage symptoms who are enrolled in clinical trials.

The moves come after the December reading for the consumer price index, a gauge of prices across a broad spectrum of goods, showed a gain of 7% year over year. That is the biggest jump since 1982, but was in-line with expectations from economists surveyed by Dow Jones.

The monthly increase was slightly hotter than expected.

However, interest rates already moved sharply higher in the first week of 2022, sparking a selloff in tech stocks. That suggests the hot inflation report, and future actions by the Federal Reserve, may be at least partially priced in to the market.

Prices for 10-year Treasurys gained some ground, lowering yields to 1.74% from Tuesday’s 1.75%. Treasury prices and yields move in opposite directions.

Oil prices picked up $1.34 to $82.56 U.S. a barrel.

Gold prices grew $2.90 to $1,821.40 U.S. an ounce.

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