Canada’s main stock index opened lower on Thursday, tracking declines on Wall Street as hotter-than-expected U.S. producer prices data fanned rate-hike worries, while Shopify led losses on a dour forecast.
The TSX stumbled 160.77 points to begin Thursday at 20,559.62.
The Canadian dollar 0.35 cents to 74.31 cents U.S.
In company news, fertilizer maker Nutrien forecast 2023 earnings below expectations and posted lower-than-expected profit for the fourth quarter. Nutrien shares galloped $3.96, or 3.8%, to $107.03.
Shopify forecast slowing revenue growth for the current quarter despite price hikes and new product launches, signaling that macroeconomic challenges were weighing on its merchants’ online businesses. U.S.-listed shares of the technology company plunged 10.2% in pre-market trading. In Canada, Shopify shares fell $10.90, or 15.3%, to $60.54.
Manulife Financial reported a drop in fourth-quarter profit as investors pulled capital from the insurer’s wealth and asset management unit amid heavy market volatility. Manulife shares acquired 82 cents, or 3.1%, to $26.95.
ON BAYSTREET
The TSX Venture Exchange lopped off 1.51 points to 621.92.
All but two of the 12 subgroups were lower, with information technology taking a bath 5%, gold, off 1.8%, and utilities sinking 0.9%.
The two gainers proved to be consumer discretionary stocks, up 0.3%, and materials, inching up 0.1%.
ON WALLSTREET
Stocks fell Thursday after another hot inflation report, and a decline in jobless claims, showed the economy is holding up amid the Federal Reserve’s rate hikes.
The Dow Jones Industrials capsized 333.64 points, or 1%, to begin Thursday at 33,794.41
The S&P 500 was off 37.44 points to 4,110.16.
The NASDAQ Composite dumped 108.39 points to 11,962.21.
Goldman Sachs, Microsoft and Amgen contributed the most to the Dow’s decline, losing more than 1% each. Every S&P 500 sector fell, with real estate, utilities and industrials leading the way lower.
January’s producer price index, another inflation measure, rose 0.7% on the month while economists surveyed by Dow Jones expected a 0.4% increase. Initial jobless claims unexpectedly fell for the week ending February 11, per a Labor Department report.
The new data comes after January’s consumer price index and retail sales report were both higher than expected, suggesting that the Federal Reserve may have further to go in its efforts to tame inflation.
Prices for the 10-year Treasury fell hard, raising yields to 3.84% from Wednesday’s 3.80%. Treasury prices and yields move in opposite directions.
Oil prices was ahead seven cents to $78.66 U.S. a barrel.
Gold prices dropped $4.60 to $1,840.70 U.S. an ounce.