Canadian stocks are exhibiting a mixed performance on Wednesday morning as investors process data from the U.S. Labor Department regarding consumer price inflation in the world's largest economy.
Sectors such as communications, real estate, industrials, and energy are among the notable decliners, while consumer discretionary stocks are showing gains.
The benchmark S&P/TSX Composite Index, which had dipped to 22,829.24, was down 12.50 points or 0.05%, standing at 22,990.59 a short while ago.
Dollarama Inc. (DOL.TO) has surged by 5.5% after reporting a rise in second-quarter net earnings to $285.94 million or $1.02 per share, up from $245.76 million or $0.86 per share in the year-ago quarter.
Cameco Corporation (CCO.TO) is up by 5.7%. Other gainers include BRP Inc. (DOO.TO), Brookfield Renewable Corporation (BEPC.TO), Restaurant Brands International (QSR.TO), Boralex Inc. (BLX.TO), and Shopify Inc. (SHOP.TO), with increases ranging from 2% to 3.5%.
AtkinsRealis Group Inc. (ATRL.TO), National Bank of Canada (NA.TO), and Tourmaline Oil Corp. (TOU.TO) have also shown notable gains.
Conversely, Canadian National Railway (CNR.TO), Morguard Corporation (MRC.TO), goeasy (GSY.TO), iA Financial Corporation (IAG.TO), and Fairfax Financial Holdings (FFH.TO) are down by 1% to 2%.
Data from the U.S. Labor Department indicates that the consumer price index rose by 0.2% in August, consistent with the increase observed in July and in line with economists' expectations.
However, core consumer prices, which exclude food and energy, increased by 0.3% in August following a 0.2% rise in July. Economists had anticipated a 0.2% rise for core prices.
Despite the Federal Reserve's likelihood of lowering interest rates next week, the marked increase in core consumer prices diminishes the probability of a 50 basis points cut.
Following the report, the CME Group's FedWatch Tool indicates an 83% chance of a quarter-point rate cut and a 17% chance of a half-point rate cut.
