Canadian Market Down Marginally In Cautious Trade After U.S. Inflation Data

(RTTNews) - Canadian stocks are turning in a mixed performance Wednesday morning with investors digesting the data from U.S. Labor Department on consumer price inflation in the world's largest economy.

Communications, real estate, industrials and energy stocks are among the notable losers. Consumer discretionary stocks are moving higher.

The benchmark S&P/TSX Composite Index, which dropped to 22,829.24, was down 12.50 points or 0.05% at 22,990.59 a little while ago.

Dollarama Inc (DOL.TO) is up 5.5%. Dollarama Inc reported Wednesday that net earnings for the second quarter increased to $285.94 million or $1.02 per share from $245.76 million or $0.86 per share in the prior-year quarter.

Cameco Corporation (CCO.TO) is gaining 5.7%. BRP Inc (DOO.TO), Brookfield Renewable Corporation (BEPC.TO), Restaurant Brands International (QSR.TO), Boralex Inc (BLX.TO) and Shopify Inc (SHOP.TO) are up 2 to 3.5%.

AtkinsRealis Group Inc (ATRL.TO), National Bank of Canada (NA.TO) and Tourmaline Oil Corp (TOU.TO) are also notably higher.

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 1 to 2%.

Data from the Labor Department showed U.S. consumer price index rose by 0.2% in August, matching the uptick seen in July as well as economist estimates.

However, core consumer prices, which exclude food and energy prices, climbed by 0.3% in August after rising by 0.2% in July. Economists had expected core prices to rise by another 0.2%.

The Federal Reserve is still likely to lower interest rates next week, but the bigger than expected increase by core consumer prices is seen as reducing the chances the central bank lowers rates by 50 basis points.

Following the report, CME Group's FedWatch Tool is indicating an 83% chance of a quarter point rate cut and just a 17% percent chance of a half-point rate cut.