Bay Street Seen Opening On Mixed Note

(RTTNews) - Canadian shares are likely to turn in a mixed performance again with investors reacting to U.S. inflation data and a slew of corporate earnings announcements. Materials shares may move higher, tracking firm metal prices.

In earnings news, AtkinsRéalis (SNC-Lavalin Group Inc.) (ATRL.TO) reported adjusted net income of $73.8 million, or $0.42 per diluted share for the first quarter of 2024, compared to $55.4 million, or $0.32 per diluted share in the first quarter of the previous year.

Boyd Group Services Inc (BYD.TO) reported net earnings decreased to $8.4 million in the first quarter of 2024, compared with $20.8 million in the same period of 2023.

Boralex Inc (BLX.TO) reported first-quarter net earnings of $73 million, up $28 million from a year ago.

On the economic front, data on Canadian housing starts for the month of April is due at 8:15 AM ET.

A report on Canadian manufacturing sales for the month of March is due at 8:30 AM ET.

After staying positive till around mid-morning, Canadian stocks turned weak and spent the rest of the day's session in negative territory on Tuesday with investors looking for directional clues.

The U.S. producer price inflation data that showed a bigger than expected increase in producer prices in April, raised concerns the Federal Reserve will likely hold interest rates higher for a longer period.

The benchmark S&P/TSX Composite Index ended lower by 15.83 points or 0.07% at 22,243.34. The index, which advanced to 22,309.03 at the start, touched a low of 22,182.88 in the session.

Asian stocks ended mixed on Wednesday, with Hong Kong and South Korean markets closed for Buddha's birthday.

The U.S. dollar and bond yields dipped while gold edged up after Federal Reserve chairman Jerome Powell said on Tuesday that the central bank is unlikely to raise its key interest rate to tackle elevated inflation.

After producer price data for April surprised on the upside, traders looked ahead to key U.S. CPI data due later in the day for clues on the Federal Reserve's next steps.

European stocks are broadly higher after flash data from Eurostat showed the euro area economy recovered in the first quarter after contracting for two straight quarters.

In commodities, West Texas Intermediate crude oil futures are down $0.52 or 0.67% at $77.50 a barrel.

Gold futures are gaining $9.50 or 0.41% at $2,369.40 an ounce, while Silver futures are up $0.333 or 1.15% at $29.035 an ounce.