Canadian Market Up Sharply On Soft U.S. Inflation Data; Technology Stocks Rally

(RTTNews) - The Canadian market is up sharply Wednesday morning, with investors reacting positively to data from the U.S. Labor Department that showed consumer prices came in flat in the month of July.

The data said the consumer price index was unchanged in July after jumping by 1.3% a month earlier. Economists had expected prices to edge up by 0.2%.

The data also said core consumer prices, excluding food and energy prices, rose by 0.3% in July, as against expectations for a 0.5% increase. The annual rate of core consumer price growth was unchanged at 5.9%, while economists had expected an acceleration to 6.1%.

The tamer than expected inflation data has led to speculation that the Federal Reserve will slow the pace of interest rate hikes at its September meeting.

Technology and healthcare stocks, which had taken a severe beating in the previous session, are among the most prominent gainers this morning. Consumer discretionary, materials, financials, real estate and consumer staples shares are also mostly up with strong gains.

The benchmark S&P/TSX Composite Index is up 282.20 points or 1.44% at 19,860.50 a few minutes before noon.

Converge Technology Solutions (CTS.TO) is zooming nearly 20%. Shopify Inc (SHOP.TO) is gaining 9% and Hut 8 Mining Corp (HUT.TO) is advancing 8%.

In the healthcare space, Canopy Growth Corp (WEED.TO) is surging 10% on strong volumes. Tilray Brands (TLRY.TO) is climbing nearly 4%.

Metro Inc. (MRU.TO) reported net earnings of $275.0 million for the third quarter of current fiscal, up 9% from a year ago. Adjusted net earnings came in at $283.8 million for the latest quarter, up 8.7% from the year-ago quarter. The stock is hovering around its previous closing level.

ATS Automation Tooling Systems Inc. (ATA.TO) is gaining 6.2% after the company reported net earnings of $39.4 million for the first quarter, up 37.3% over the year-ago quarter.

Boyd Group Services Inc. (BYD.TO) is soaring nearly 20% after the company announced that its adjusted net earnings for the second quarter increased to $13.6 million, compared with $11.4 million in the same period last year. Adjusted net earnings per share came in at $0.63, compared with $0.53 a year ago.

Centerra Gold Inc (CG.TO) shares are plunging 20% after the company said it posted a net loss of $2.6 million in the second quarter of this financial year. The loss included a $40.9 million reclamation provision revaluation recovery at the Endako Mine and the Thompson Creek Mine, the company said.

Magnet Forensics Inc. (MAGT.TO) reported net loss of $1 million in the second quarter of 2022, compared to net income of $1.6 million in the corresponding quarter last year. Despite the results, the Magnet Forensics shares are up nearly 10%.

Air Canada (AC.TO), Manulife Financial (MFC.TO), Lundin Mining (LUN.TO), Toronto-Dominion Bank (TD.TO) and Baytex Energy (BTE.TO) are gaining 1 to 3%.