Canada Stocks: TSX weighted down by healthcare stocks; Fed meet in focus

Celestica

30/01/2024 16:06

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      TSX down 0.4%
    

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      Healthcare sector top loser 
    

  
 (Updated at 10:33 a.m. ET/ 1533 GMT)
    By Purvi Agarwal and Khushi Singh
       Jan 30 (Reuters) - Canada's main stock index fell in a
broad selloff on Tuesday, led by losses in healthcare stocks,
ahead of Big Tech earnings in the United States, domestic GDP
data and Federal Reserve's rate decision later this week.
    At 10:33 a.m. ET (15:33 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was down 77.43 points, or
0.37%, at 21,122.63.
    Healthcare shares  .GSPTTHC  were the top decliners, falling
1.5%, led by a 2.3% slide in pot firm Tilray Brands  TLRY.TO 
after Bernstein cut the target price on the stock.
    Heavyweight financials  .SPTTFS  shed 0.2%, while the energy
shares  .SPTTEN  traded flat.
    Markets remain subdued ahead of the Federal Reserve's
monetary policy meeting on Wednesday, alongside a November
reading of Canadian gross domestic product (GDP) data.
    "Another soft GDP report should give the Bank of Canada more
evidence of fading growth momentum as a drag from services holds
GDP unchanged in November for the 6th consecutive month in the
flat/negative territory," analysts at TD Securities said in a
note.     
    The yield on the 10-year benchmark Canadian bond rose 3
basis points on Tuesday and was last at 3.485%.
    The benchmark index has had a downbeat start to 2024, as
investors scaled back expectations of an early rate cut after
domestic data showed sticky inflation in Canada.
    On the corporate side, shares of electronics company
Celestica  CLS.TO  climbed 4.9% after it reported fourth-quarter
results that beat analysts' estimates.
    Investors will now move their focus to the quarterly
earnings of Microsoft  MSFT.O  and Alphabet  GOOGL.O  scheduled
to be announced today after market close. Apple  AAPL.O ,
Amazon.com  AMZN.O  and Meta  META.O  report their results on
Thursday.
    Wall Street's main indexes were subdued on Tuesday as
investors assessed mixed earnings from legacy names such as
United Parcel Service and General Motors.  .N 

 (Reporting by Purvi Agarwal in Bengaluru; Editing by Vijay
Kishore)
 ((Purvi.Agarwal@thomsonreuters.com))