TSX Bruised at Open

Equities in Canada’s largest market slipped at open on Tuesday, with all major sectors falling after data showed that consumer inflation unexpectedly accelerated in April, the first time in 10 months.

The TSX swooned 196.16 points, or nearly 1%, to open Tuesday trading at 20,343.81.

The Canadian dollar gained 0.2 cents to 74.44 cents U.S.

Among company news, miner Lithium Americas Corp said first-quarter loss narrowed significantly, aided by gains from an earlier investment made by U.S. automaker General Motors Co. Lithium shares began the day up 75 cents, or 2.6%, to $30.00.

Pilots at Onex Corp's WestJet Group gave notice that could allow for strike action as early as May 19 on demands for higher salaries and better scheduling.

Shares in Onex went down 38 cents to $59.84.

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 dipped 0.97 points to 614.84.

All 12 TSX subgroups plunged in the first hour Tuesday, weighed most by health-care, down 1.6%, gold, sinking 1.3%, and energy, off 1.2%.

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 lost 240.51 points to begin Tuesday at 33,108.09.

Read:

• Global Lithium Supply Under Pressure as South American Nations Discuss "Lithium OPEC"

• International Lithium Buyers Looking to South America to Fill Supply Gaps

• Race to Secure Critical EV Battery Metals Ahead of Chinese Dominance Fully Underway

• Help is on the Way as Rising Alzheimer’s Cases Highlight Urgency for New Treatments

• FDA’s Wave of Fast Track Designations Pushing Momentum in Healthcare Sector in 2023

The S&P 500 backed off 17.17 points to 4,119.11.

The NASDAQ Composite removed 11.56 points to 12,353.65.

Dow member Home Depot pulled back by 3.3% 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, R-Calif., 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 added 15 cents to $71.26 U.S. a barrel.

Gold prices forfeited $13.10 to $2,009.60 U.S. an ounce.