By Ketki Saxena
Investing.com – The S&P/TSX Composite tracked Wall Street lower this morning, after downbeat forecasts from Home Depot (NYSE:HD) and Walmart (NYSE:WMT), indicative of a larger slowdown in retail as rate hikes from the Federal Reserve cool the US economy. Rising treasury yields, and ongoing fears of further hawkishness from the Fed also weighed on growth stocks.
The commodity heavy Canadian index gained little support from oil prices, which remained mixed on mixed signals including China’s reopening, future direction from the Fed, and uncertain global supply.
The Biggest Stories on Bay Street
Teck Resources Ltd A (TSX:TECKa) will spin off its multibillion dollar steelmaking coal mines business into a company called Elk Valley Resources Ltd, while the parent company will own copper and zinc mines and be renamed Teck Metals Corp. The spinoff is subject to shareholder approval. The new company will be listed on the Toronto Stock Exchange.
CIBC (TSX:CM) has agreed to pay Cerberus Capital Management US$770 million to settle a lawsuit related to a defaulted on payments tied to a limited-recourse note issued by the bank to Cerebrus, dating back to the financial crisis. The amount is about US$85 million less than the company had set aside for the dispute.
Rich Kruger, the former president and CEO of Imperial Oil (TSX:IMO) from 2013 until his retirement in 2019, will now return to the oil industry as the new chief executive of Suncor Energy Inc (TSX:SU). Kruger will replace interim CEO Kris Smith on April 3.
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In Canadian Economics
Statistics Canada says retail sales rose 0.5% to $62.1 billion in December. Sales grew in seven of 11 subsectors in December, representing 75.1% of retail trade. Core retail sales, which exclude gasoline stations and motor vehicle and parts dealers, were up 0.4% in December. In volume terms, retail sales increased 1.3% in December.
Canadian inflation moderated to 5.9% in January, the first time since February 2022 that the Consumer Price Index has ticked in below 6%. The reading was cooler than the 6.3% seen in December and the 6.1% year over year increase expected by analysts.