The stock market in Canada turned bearish on Thursday following the release of the hotter-than-expected U.S. consumer inflation numbers, which raised concerns that the Federal Reserve might need to maintain elevated interest rates for an extended period to fight inflationary pressures. After tanking by as much as 216 points in intraday trading, a late recovery helped the S&P/TSX Composite Index trim its losses to end the session with a 71-point decline at 20,918.
According to the U.S. Bureau of Labor Statistics, the country’s consumer price gauge for all urban consumers rose 0.3% in December 2023, higher compared to a 0.1% increase in the previous month. This increase was largely influenced by the shelter index, which contributed more than half of the overall monthly increase.
Top TSX Composite movers and active stocks
Lithium Americas, Interfor, Tilray Brands, and SilverCrest Metals were the worst-performing TSX stocks yesterday, as they plunged by at least 4.2% each.
In contrast, Aritzia (TSX:ATZ) zoomed up by 21% to $32.01 per share, a day after announcing its upbeat quarterly financial results. In the third quarter (ended in November) of its fiscal year 2024, the Vancouver-based apparel retailer’s revenue rose 4.6% year over year to $653.5 million with the help of a strong 5.1% increase in its home market sales.
Aritzia’s adjusted quarterly earnings of $0.47 per share exceeded analysts’ estimate of $0.41 per share. In addition, the company gave a strong fourth-quarter revenue guidance range of $670-$690 million, which could be another key reason leading to an aggressive buying spree in ATZ stock after the earnings event. With this, Aritzia’s share prices have advanced by 16.4% in January so far.
Cameco and ARC Resources were also among the session’s top gainers on the Toronto Stock Exchange, as they climbed up by at least 3% each.
Based on their daily trade volume, NexGen Energy, TD Bank, Manulife Financial, Canadian Natural Resources, and Canadian Imperial Bank of Commerce were the five most active stocks on the exchange.
Crude oil and metals prices were largely bullish early Friday morning, which could help the commodity-heavy TSX index to trade on a firm note at the open today.
After yesterday’s release of hot consumer inflation numbers, Canadian investors will now shift their focus to the monthly U.S. wholesale inflation data scheduled to be released this morning. This new data could give further direction for the TSX benchmark by helping investors set their expectations regarding the Fed’s upcoming policy moves.