TSX Ends Lower As U.S. Inflation Data Raises Interest Rate Concerns

(RTTNews) - The Canadian market ended weak on Thursday, as losses in financials and utilities sectors offset gains in energy and consumer discretionary sections.

Data from the Labor Department showing a bigger than expected rise in U.S. consumer prices in the month of December raised concerns the Fed will keep interest rates higher for longer.

The benchmark S&P/TSX Composite Index ended down 71.02 points or 0.34% at 20,918.40.

Hut 8 Corp (HUT.TO) declined 7%. Interfor Corporation (IFP.TO) ended lower by 5.9%. Brookfield Renewable Partners (BEPC.TO), Celestica Inc (CLS.TO), Canadian Pacific Kansas City (CP.TO), Fortis Inc (FTS.TO), Canadian Imperial Bank of Commerce (CM.TO), Bank of Nova Scotia (BNS.TO), Toronto-Dominion Bank (TD.TO) and EQB Inc (EQB.TO) lost 1 to 3%.

Aritzia Inc (ATZ.TO) soared 21% after the company reported a notable jump in sales in the third quarter.

Cameco Corporation (CCO.TO) climbed 3.5%. Precision Drilling Corporation (PD.TO), Descartes Systems Group (DSG.TO), George Weston (WN.TO), Open Text Corporation (OTEX.TO), Loblaw Companies (L.TO), West Fraser Timber (WFG.TO) and Onex Corporation (ONEX.TO) gained 1 to 2.5%.

Thomson Reuters Corporation (TRI.TO) Thursday announced a public tender offer to acquire Pagero Group AB, a provider of e-invoicing and indirect tax solutions, for about SEK 6.4 billion, to be paid in cash. The offer price of SEK 40 per share represents a premium of 11.1% compared to the closing price of SEK 36 on January 10. The stock ended down by 0.27%.

The U.S. Labor Department said its consumer price index climbed by 0.3% in December after inching up by 0.1% in November. Economists had expected consumer prices to rise by 0.2%.

The report also showed the annual rate of consumer price growth accelerated to 3.4% in December from 3.1% in November. The annual rate of growth was expected to tick up to 3.2%.

Meanwhile, the annual rate of growth by core consumer prices slowed to 3.9 percent in December from 4.0 percent in November. Economists had expected the pace of core price growth to decelerate to 3.8 percent.

A number of economists have said the data makes the U.S. central bank less likely to cut interest rates in March, with many predicting the central bank will hold off until its May meeting.

Cogeco Communications Inc (CCA.TO) reported adjusted profit of $103.7 million, or $2.33 per diluted share for the first quarter ended November 30, 2023, compared to $113.5 million, or $2.48 per diluted share, last year. The stock gained about 0.25%.

Cogeco Inc. (CGO.TO) reported adjusted profit of $40.0 million, or $2.57 per diluted share for the first quarter ended November 30, 2023, compared to $42.8 million, or $2.71 per diluted share, last year. The stock ended marginally down.