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Wall St mood glum after inflation data
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CIBC gains as profit beat estimates
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Jamieson Wellness drops to TSX bottom on results miss
By Shristi Achar A Feb 24 (Reuters) - Canada's main stock index fell on Friday as hotter-than-expected U.S. inflation data spurred worries about the Federal Reserve keeping interest rates higher for longer.
At 10:08 a.m. ET (1508 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 131.41 points, or 0.65%, at 20,056.78 – headed for its third straight week of losses.
The Wall Street slid as U.S. consumer spending and inflation rebounded sharply in January amid strong income growth, adding to fears that the Fed could continue raising interest rates through summer. "We talk about interest rates and central banks moving the market. But you have to understand that why the market moves further to the downside is because of the uncertainty," said Allan Small, senior investment advisor at Allan Small Financial Group.
"If the market can factor in what is going to happen, that is when you see the market move to the upside." Rate-sensitive technology sector led losses on the index, falling 1.6%.
All the major sectors were also set for declines, while the benchmark TSX looked on course for its biggest weekly decline so far of 2023 as concerns of higher rates reversed the market optimism seen at the start of the year.
In earnings, Canadian Imperial Bank of Commerce gained 1.9% after the lender trounced first-quarter profit estimates, as growth in capital markets division boosted revenue and more than offset a decline in other units. Jamieson Wellness Inc led losses on the TSX, down 9%, after the health and wellness company missed estimates for fourth-quarter results.
Toronto-Dominion Bank edged up 0.1% after the lender said it received all regulatory approvals to complete its $1.3 billion acquisition of New York-based boutique investment bank Cowen Inc .
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ALL SECTORS ON TSX HEADED FOR WEEKLY LOSS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Shristi Achar A in Bengaluru; Editing by Shailesh Kuber)
