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US stocks, TSX, slump on caution ahead of inflation data; Boeing retreats further

Published 2024-01-08, 06:26 p/m
© Reuters.

Investing.com -- The main Canadian index, the TSX, and U.S. stocks retreated Tuesday. The North American indices handed back some of the previous session’s tech-led gains amid caution ahead of the release of key inflation data later in the week.

Wall Street Indices, and the TSX closed higher on Monday, boosted by strong gains from chip designer and artificial intelligence darling Nvidia (NASDAQ:NVDA), which helped the tech-heavy Nasdaq Composite post its best day since mid-November.

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Caution ahead of CPI release

However, investors still remain very cautious ahead of Thursday’s release of the latest U.S. inflation release, which should offer more clarity over what the U.S. central bank intends to do with interest rates in the first quarter of the new year.

The crucial core figure is rising by 0.2% month-on-month, dragging the annual pace down to 3.8%, a level not seen since mid-2021.

Data, released earlier Tuesday, showed that the U.S. trade deficit unexpectedly narrowed in November as imports declined.

Tilray Earnings, Boeing remains in spotlight

Tilray (TSX:TLRY) (NASDAQ:TLRY) stock rose 5.5% after the cannabis company reported a strong performance at its marijuana and beverage divisions, boosting revenues to a new high.

Boeing (NYSE:BA) sock fell 1.3% after loose parts on some grounded models of the plane manufacturer's 737 Max 9 jet have reportedly been discovered by both United Airlines (NASDAQ:UAL) and Alaska Airlines.

Match Group (NASDAQ:MTCH) stock surged over 10% following a report by the Wall Street Journal indicating that activist investor Elliott Investment Management has amassed a stake of approximately $1 billion in the dating app company.

Juniper Networks (NYSE:JNPR) soared over 20% after the WSJ reported that Hewlett Packard Enterprise (NYSE:HPE) is reportedly in advanced negotiations to acquire the tech company for approximately $13 billion.

Crude rebounds ahead of API inventories

Oil prices rose Tuesday, rebounding after the previous session’s sharp losses, as traders digested concerns over sluggish demand as well as Middle East tensions.

Both crude benchmarks had fallen over 3% on Monday as sharp price cuts by top exporter Saudi Arabia had raised worries about slowing crude demand, particularly from major Asian consumers.

However, the ongoing conflict between Israel and Hamas, and the worry that this could grow into a regional crisis that could disrupt Middle Eastern oil supplies, remains an underlying support for the crude market.

The latest reading of U.S. crude inventories from industry body American Petroleum Institute is due later in the session, ahead of Wednesday’s official data.

(Oliver Gray contributed to this article.)

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