Woes Continue for Markets

Canada's main resource-heavy stock index fell on Friday as commodity-linked stocks fell, while hotter-than-expected domestic producer prices data fed into investor angst about interest rate hikes.

The TSX continued its slide, docking 101.33 points to move into lunch hour at 20,505.09.

The Canadian dollar slid 0.13 cents to 74.09 cents U.S.

Gold miners were dragged down by Agnico Eagle Mines, off $5.37, or 8.1%, to $60.98, and IAMGOLD, down 14 cents, or 4.2%, to $3.23. Both missed fourth quarter profit estimates.

In earnings, Air Canada slumped $1.77, or 7.7%, among top losers on TSX, to $21.38, after the country's largest carrier reported a larger-than-expected quarterly loss per share.

MTY Food Group extended its declines, down $4.17, or 6%, to $65.00, as multiple brokerages cut their price targets after the casual dining chain reported a fall in fourth-quarter net income.

On the economic slate, Statistics Canada’s industrial product price index increased 0.4% month over month in January and rose 5.4% year over year, while its raw materials price index edged down 0.1% month over month in January and was 1.2% higher compared with January 2022.

What is more, foreign investment in Canadian securities accelerated in December and reached $21.2 billion, the largest investment since August. At the same time, Canadian investors reduced their holdings of foreign securities by $2.3 billion after buying $14.7 billion in November.

ON BAYSTREET

The TSX Venture Exchange retreated 6.89 points, or 1.1%, to 620.33.

Seven of the 12 subgroups moved higher, utilities taking on 0.6%, consumer staples improving 0.5%, and real-estate better by 0.3%.

The five laggards were weighed most by energy, sagging 2.4%, gold, down 1.8%, and materials, worse off 1.7%.

ON WALLSTREET

U.S. stocks slipped on Friday as stubbornly high inflation and a rebound in rates continue to weigh on investor sentiment.

The Dow Jones Industrials subtracted 29.13 points to pause for lunch Friday at 33,667.72

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The S&P 500 retreated 30.27 points to 4,060.14.

The NASDAQ Composite skidded 137.57 to 11,765.09.

Stocks are trending down for the week. The Dow is down 0.9% for the week. The 30-stock index is on pace for its third negative week in a row — a first since September. The NASDAQ is down 0.02% for the week. Meanwhile, the S&P 500 is down 0.85%.

Energy was the biggest laggard across indexes. Albemarle docked more than 10% and Devon Energy fell nearly 5%, weighing on the S&P 500.

Investors continue to worry about how the economy and equities will hold up as the Federal Reserve hikes rates to tame stubbornly high inflation. In a Friday speech, Federal Reserve Governor Michelle Bowman said there’s a long way to go before the central bank reaches its target of 2% inflation.

The moves came after major averages shed more than 1% on Thursday, after the U.S. Labor Department said the producer price index — an inflation metric that tracks wholesale prices — rose 0.7% last month. That was more than economists expected.

Prices for the 10-year Treasury inched higher, lowering yields to 3.84% from Thursday’s 3.86%. Treasury prices and yields move in opposite directions.

Oil prices decreased $2.07 cents to $76.42 U.S. a barrel.

Gold prices fell $3.20 to $1,848.60 U.S. an ounce.