Hot inflation number triggers sell-off
Markets on Thursday slid on new inflation figures that were higher than expected and the highest in 40 years. This stoked fears of the U.S. raising interest rates higher and faster in coming months. The U.S. 10-year yield leapt 5% to top 2.052%, its highest level since August 2019. The S&P closed -1.81%, the Nasdaq -2.1% and the Dow -1.47%.
As expected, tech was hit the hardest as Microsoft finished -3.28%, Netflix -2.37%, Adobe -5.22% and Intuit -4.04%. The sell-off impacted many other sectors with Blackrock shedding 4.91%, chipmakers like AMD sliding 5.37% and MSCI losing 3.34%. Despite market weakness, Disney delivered a surprising earnings beat, led by its theme park attendance and Disney+ subscriptions; shares jumped 3.65%. Also, Micron rallied 3.57% and Kellogg popped 3.07%.
The TSX saw more modest declines as it closed -0.43%. Energy and financials supported the index while tech lagged as it did in the U.S. Brookfield Asset Management jumped 5.54% after announcing a spin-off. Other winners were Canfor up 6.65%, Manulife which climbed 3.68% after its earnings report, A&R REIT up 3.14% and Riocan REIT adding 3.13%. Laggards were Shopify down 3%, Sun Life Financial sinking 5.54% and Canada Goose diving 16% after weak earnings and outlook. Oil marched up as WTI returned to $90 a barrel and WCS traded around $76.65.
Ⓜ Microsoft (MSFT-Q) -3.28%
📺 Netflix Inc. (NFLX-Q) -2.37%
💾 Adobe Systems (ADBE-Q) -5.22%
💿 Intuit Inc. (INTU-Q) -4.04%
🏛 Blackrock Inc. (BLK-N) -4.91%
💾 Advanced Micro Devices (AMD-Q) -5.37%
🏛 MSCI Inc. (MSCI-N) -3.34%
👸 Walt Disney Co. (DIS-N) +3.65%
💾 Micron Technology (MU-Q) +3.57%
🌽 Kellog (K-N) +3.07%
♻ Brookfield Asset Management Inc. (BAM-N) +5.54%
🌲 Canfor Pulp Products (CFX-T) +6.65%
🏛 Manulife Financial (MFC-T) +3.68%
🏛 A&W Revenue Royalties Income Fund (AW.UN-T) +3.14%
🏠 RioCan Real Estate Investment (REI.UN-T) +3.13%
🛍 Shopify Inc. (SHOP-T) -3%
🏛 Sun Life Financial Inc (SLF-T) -5.54%
🧣 Canada Goose Holdings (GOOS-T) -16%
