TSX Firmly in Red

Canada's main stock index dropped on Tuesday as a hike in government bond yields dented rate-sensitive technology shares and
consumer stocks tracked weak sentiment on the Wall Street, outweighing relief from easing domestic inflation.

The TSX retreated 160.91 points midday Tuesday to 20,354.33.

The Canadian dollar dipped 0.25 cents to 74.08 cents U.S.

In company news, Teck Resources gained $1.05, or 1.8%, to $60.45, after it missed fourth-quarter profit estimates and also said it would spin off its steelmaking coal unit. The miner said it will also change its name to Teck Metals Corp.

Canopy Growth fell 15 cents, or 4.5%, to $3.22 as the cannabis producer entered into a deal with an institutional investor to sell up to $150 million of 5.0% convertible bonds (CBs) due 2028.

Suncor Energy gained $1.02, or 2.3%, to $45.61, after the company named Rich Kruger as its chief executive officer, effective April 3.

Sigma Lithium climbed $7.39, or 18.6%, to $47.23, on a Friday report that Tesla was weighing a takeover of the battery metals miner.

Markets on both sides of the border were closed Monday, those in Canada for Family Day, in the States for Presidents Day.

On the economic slate, Statistics Canada said retail trade hiked 0.5% to $62.1 billion in December. Sales increased in seven of 11 subsectors and were led by higher sales at motor vehicle and parts dealers (+3.8%) and general merchandise stores (+1.7%).

The agency also said its consumer price index rose 5.9% on a year-over-year basis in January, following a 6.3% increase in December. On a seasonally adjusted monthly basis, the CPI rose 0.3% in January.

ON BAYSTREET

The TSX Venture Exchange lost 0.12 points to 627.66.

All but three of the 12 subgroups were lower, with health-care caving 2.6%, information technology skidding 2.1%, and consumer staples off 1.2%

The three gainers proved to be materials, better by 0.5%, while energy and gold each improved 0.2%. .

ON WALLSTREET

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U.S. stocks dropped Tuesday as higher rates continue to pressure market sentiment, and the latest batch of retail earnings raised concern about the state of the consumer.

The Dow Jones Industrials cratered 496.95 points, or 1.5%, to break for lunch Tuesday at 33,329.74.

The S&P 500 retreated 61.64 points, or 1.5%, to 4,017.45.

The NASDAQ Composite moved backward 222.27, or 1.9%, to 11,565.

Home Depot shares fell 4.6% after the home improvement retailer posted weaker-than-expected revenue for the fourth quarter. The company also issued a muted outlook.

The Dow fell 0.1% last week, marking its third straight weekly decline. The S&P 500 slid for a second consecutive week, losing 0.3%. The tech-heavy NASDAQ Composite bucked the trend, rising 0.6%.

The Federal Reserve on Wednesday is scheduled to release the minutes from its meeting of Jan. 31 and Feb. 1. The central bank hiked rates by 25 basis points after that meeting.

Prices for the 10-year Treasury withered, lifting yields to 3.93% from Friday’s 3.81%. Treasury prices and yields move in opposite directions.

Oil prices settled seven cents to $76.27 U.S. a barrel.

Gold prices fell $5.90 to $1,844.00 U.S. an ounce.