Equities Bruised Midday Tuesday

Stocks in Toronto slipped on Tuesday and logged their worst day in three weeks after data showed consumer inflation unexpectedly rose in April, the first time in 10 months.

The TSX was pummeled 231.97 points, or 1.1%, to break for lunch Tuesday at 20,308.

The Canadian dollar stepped back 0.04 cents to 74.28 cents U.S.

Among company news, Teck Resources fell $1.89, or 3.1%, to $58.57, after the miner's chief executive said buying its coal business as a standalone unit was a "distant second" for Glencore.

In a bright spot, Lithium Americas jumped $1.24, or 4.2%, to $30.49, after the miner said first-quarter loss narrowed significantly, aided by gains from an earlier investment made by U.S. automaker General Motors Co.

In the economic docket, Statistics Canada said manufacturing sales rose 0.7% in March, mainly on higher sales in the transportation equipment and primary metal industries, while April’s consumer price index rose 4.4% on a year-over-year basis in April, following a 4.3% increase in March. On a seasonally adjusted monthly basis, the CPI rose 0.6% in April.

ON BAYSTREET

The TSX Venture Exchange shrank 5.84 points, or 1%, to 609.97.

All 12 TSX subgroups plunged Tuesday morning, weighed most by gold, peppered 2.7%, materials, sliding 1.9%, and real-estate, off 1.6%.

ON WALLSTREET

Stocks dipped Tuesday as investors digested a lackluster forecast from Home Depot. Wall Street also turned its attention to a meeting between congressional leaders and President Joe Biden on the U.S. debt ceiling.

The Dow Jones Industrials were hammered 198.66 points midday to 33,149.94.

The S&P 500 backed off 9.14 points to 4,127.34.

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The NASDAQ Composite turned around and recovered 34.91 points to 12,400.12.

Dow member Home Depot pulled back by 1.7% after the home improvement retailer reported disappointing quarterly revenue and cut its full-year guidance.

Meanwhile, April retail sales rose 0.4% last month, lower than the 0.8% increase anticipated by economists polled by Dow Jones.

Investors are anxiously awaiting progress on a deal to raise the debt ceiling before June 1, which is the earliest date the Treasury
Department has said the U.S. could default on its debt obligations. Treasury Secretary Janet Yellen said last week that a lack of a deal could spur an “economic catastrophe.”

Biden maintained a more optimistic view of the ongoing negotiations over the weekend, while House Speaker Kevin McCarthy said significant obstacles remain.

Biden has so far maintained that raising the debt ceiling is non-negotiable. McCarthy, however, has pushed for talks to broker a deal to raise the debt ceiling be tied to spending cuts.

Prices for the 10-year Treasury lost ground, raising yields to 3.56% from Friday’s 3.50%. Treasury prices and yields move in opposite directions.

Oil prices subtracted 27 cents to $70.84 U.S. a barrel.

Gold prices forfeited $23.10 to $1,999.60 U.S. an ounce.