Canadian stocks experienced a downturn Friday morning as the initial excitement over a significant interest rate cut by the Federal Reserve waned. Industrials, energy, and consumer discretionary stocks were among the major decliners.
Investors are evaluating recent data on Canadian retail sales and producer and raw materials prices.
The benchmark S&P/TSX Composite Index has fallen by 33.43 points, or 0.14%, to 23,832.84, roughly thirty minutes into the afternoon session.
In the industrial sector, Ballard Power Systems (BLDP.TO) led the decliners, dropping 4.6%. Other notable losers included Tfi International (TFII.TO), Air Canada (AC.TO), Richelieu Hardware (RCH.TO), Bombardier Inc (BBD.B.TO), Stantec (STN.TO), Canadian National Railway (CNR.TO), Badger Infrastructure (BDGI.TO), Canadian Pacific Kansas City (CP.TO), and Mullen Group (MTL.TO), with declines ranging from 1.7% to 2.5%.
Energy sector stocks also tumbled, with Tourmaline Oil Corporation (TOU.TO), Suncor Energy (SU.TO), Arc Resources (ARX.TO), Parex Resources (PXT.TO), Nuvista Energy (NVA.TO), Canadian Natural Resources (CNQ.TO), and International Petroleum Corp (IPCO.TO) all down by 1% to 2%.
In consumer discretionary, Spin Master Corp (TOY.TO) fell by 2.5%, Magna International (MG.TO) by 1.5%, and Restaurant Brands International (QSR.TO) by 1.7%.
Conversely, some stocks managed to gain. Cameco Corporation (CCO.TO) surged 8.4%, and Cogeco Inc (CGO.TO) rose 2.75%. Docebo Inc (DCBO.TO), Agnico Eagle Mines (AEM.TO), Newmont Corporation (NGT.TO), TC Energy Corporation (TRP.TO), and Wheaton Precious Metals (WPM.TO) posted gains of 1% to 2%.
According to a flash estimate by Statistics Canada, retail sales in Canada are projected to have increased by 0.5% from the previous month in August 2024, following a revised 0.9% rise in July, up from an initial estimate of 0.6%.
Year-over-year, retail sales in Canada increased by 0.9% in July 2024. Excluding autos, retail sales saw a month-over-month increase of 0.4% in July 2024, slightly higher than the 0.3% recorded in June and the forecasted 0.3%.
Separate data from Statistics Canada indicated that industrial producer prices in Canada declined by 0.8% month-over-month in August, a steeper drop than the anticipated 0.3% decline, following a revised 0.1% decrease in the prior period. Industrial producer inflation rose by 0.2% in August, significantly down from an upwardly revised 2.8% increase the previous month.
The Raw Materials Price Index in Canada fell by 3.1% month-over-month in August 2024, compared to a 0.7% increase in the prior month and exceeding the expected 2.5% decline. Annually, raw material prices dropped by 2.5% in August, marking the first decrease in six months, following a 4.1% rise in the previous month.
