Hot U.S. inflation pressures stocks

Allan Tong Posted On February 12, 2025

January’s CPI print south of the border came in at 3.0%, higher than the expected 2.9% and fanning fears that the U.S. Fed will hold interest rates for longer. Though losses eased by the close of the session, the S&P still lost 0.27%, the Dow sank 0.5% and the Nasdaq climbed only 6 points.

While Trump’s tariffs continue to shadow the market, earnings sparked rallies for stocks such as CVS, which soared 14.95% on a blowout quarter. Meanwhile, Generac rallied 7.56%, Intel 7.2% as Westinghouse closed -9.06% and Arista Networks -6.16%. The inflation print pushed the U.S. 10-year yield up to 4.625% while Bitcoin added 1.2% to US$97,545.

In Toronto, the TSX shed 27 points or 0.11% as sectors were mixed. Materials and telcos outperformed while energy and discretionary lagged the most. Major movers: BlackBerry 10.49%, Barrick Gold 6.35%, CNQ -2.9%%, Baytex -4.34% and Intact Financial 5.08%. Stockpiles were reported lower than expected, pushing WTI down US$2 a barrel to US$2,902. However, gold climbed US$5 to maintain record levels at US$2,902.

👨‍⚕️ CVS Health Corp (CVS-N) +14.95%

🧬 Generac (GNRC-N) +7.56%

💾 Intel (INTC-Q) +7.2%

⚙ Westinghouse Air Brake Technologies Corporation (WAB-N) -9.06%

🧬 Arista Networks, Inc. (ANET-N) -6.16%

🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +1.2%

📱 BlackBerry (BB-T) +10.49%

🥇 Barrick Gold (ABX-T) +6.35%

🛢 Canadian Natural Rsrcs (CNQ-T) -2.9%

🛢 Baytex Energy Corp (BTE-T) -4.34%

🏛 Intact Financial (IFC-T) +5.08%