Canadian Stocks Down In Negative Territory As U.S. Inflation Data Weighs

(RTTNews) - Canadian stocks are down firmly in negative territory Thursday afternoon, weighed down by concerns the Federal Reserve will hold interest rates higher for longer after data showed a bigger than expected increase in U.S. consumer prices in the month of December.

Shares from utilities, healthcare and financials sector are among the prominent losers. Energy stocks are faring reasonably well thanks to higher crude oil prices.

The benchmark S&P/TSX Composite Index, which tumbled to 20,773.14, was down 117.55 points or 0.56% at 20,871.87 a little while ago.

Interfor Corporation (IFP.TO) is declining 5.6%. Quebecor Inc (QBR.A.TO), Celestica Inc (CLS.TO), Richelieu Hardware (RCH.TO), Canadian Pacific Kansas City (CP.TO), Premium Brands Holdings (PBH.TO), Alimentation Couche-Tard (ATD.TO) and Royal Bank of Canada (RY.TO) are down 1 to 3%.

Aritzia Inc (ATZ.TO) is soaring more than 20% after the company's sales in the third-quarter surpassed expectations, climbing 5% annually to $653.5 million.

Cascades Inc (CAS.TO) is rising nearly 8%. Cameco Corporation (CCO.TO), North American Construction Group (NOA.TO), Tourmaline Oil Corp (TOU.TO), Rogers Communications (RCI.A.TO), Precision Drilling Corporation (PD.TO), Descartes Systems Group (DSG.TO), Methanex Corporation (MX.TO), Linamar Corporation (LNR.TO) and RB Global (RBA.TO) are gaining 1 to 3%.

The U.S. Labor Department said its consumer price index climbed by 0.3% in December after inching up by 0.1% in November. Economists had expected consumer prices to rise by 0.2%.

The report also showed the annual rate of consumer price growth accelerated to 3.4% in December from 3.1% in November. The annual rate of growth was expected to tick up to 3.2%.

Meanwhile, the annual rate of growth by core consumer prices slowed to 3.9 percent in December from 4.0 percent in November. Economists had expected the pace of core price growth to decelerate to 3.8 percent.

A number of economists have said the data makes the U.S. central bank less likely to cut interest rates in March, with many predicting the central bank will hold off until its May meeting.