Canadian stocks presented a mixed performance on Friday, as investors assessed the nation's GDP data alongside the U.S. Personal Consumption Expenditure (PCE) report.
The S&P/TSX Composite Index slipped by 19.51 points, or 0.09%, reaching 21,922.65, as of a quarter past noon. Earlier in the session, the index peaked at 22,050.29.
Kinaxis Inc. (KXS.TO) experienced a rise of about 3.5%. Other gainers included Lassonde Industries (LAS.TO), Bombardier Inc. (BBD.A.TO), EQB Inc. (EQB.TO), TFI International (TFII.TO), goeasy (GSY.TO), BRP Inc. (DOO.TO), and Restaurant Brands International (QSR.TO), with gains ranging from 1.3% to 2.4%.
On the downside, Tecsys Inc. (TCS.TO), Labrador Iron Ore Royalty (LIF.TO), Pollard Banknote (PBL.TO), and Brookfield Renewable Corporation (BEPC.TO) declined by 3.5% to 4.6%.
Additionally, TC Energy (TRP.TO), Cameco Corporation (CCO.TO), Molson Coors Canada (TPX.B.TO), and Canadian Imperial Bank of Commerce (CM.TO) fell by 1.4% to 2%.
According to final data from Statistics Canada, the economy expanded by 0.3% in April 2024, aligning with preliminary estimates. For May 2024, GDP is expected to grow by 0.1%, driven by increases in manufacturing, real estate, rental and leasing, and finance and insurance sectors, which partially offset declines in retail and wholesale trade, as per preliminary estimates.
The Canadian Federation of Independent Business reported a slight dip in the CFIB business barometer, which measures 12-month forward expectations for business performance, to 56.3 in June 2024, down from a revised 56.6 the previous month.
In the U.S., the Commerce Department stated that the PCE price index remained unchanged in May, following a 0.3% rise in April. The core PCE price index, excluding food and energy prices, edged up by 0.1% in May after an upwardly revised 0.3% increase in April. These figures met economists' expectations, who had predicted a 0.1% uptick, compared to the initially reported 0.2% for the previous month.
Furthermore, the annual growth rates for the PCE price index and the core PCE price index both eased to 2.6% from 2.7% and 2.8%, respectively, aligning with projections. These slowdowns have fostered optimism regarding interest rate prospects, as Federal Reserve officials have emphasized the need for stronger evidence of decelerating inflation before considering rate cuts.
