Investing.com -- Canada's main stock index edged lower on Thursday as falling gold prices and disappointing mining earnings weighed on materials shares, while investors assessed U.S. inflation data and stronger-than-expected economic growth.
T
The S&P/TSX Composite Index was down 0.07%, or 26.18 points, at 36,238.91.
The materials sector led declines, falling 2.4% as gold prices weakened after U.S. inflation data reinforced expectations that the Federal Reserve could raise interest rates later this year. Disappointing quarterly results from gold producers added to the pressure on mining stocks.
Alamos Gold Inc (TSX:AGI) fell 8.3% after the company missed third-quarter profit estimates, while Kinross Gold Corp (NYSE:KGC) lost 5% as its quarterly revenue declined 2%.
The weakness in Canadian mining shares came as investors reassessed the outlook for precious metals following the latest U.S. economic data. Higher interest rates can weigh on gold by increasing the opportunity cost of holding the non-yielding asset.
Technology stocks also weighed on the benchmark, with the sector falling 1% after Alphabet Inc Class A (NASDAQ:GOOGL) reported disappointing search advertising results and an increase in cash spending as it accelerated investments in artificial intelligence. The results renewed concerns about whether technology companies will generate sufficient returns from their substantial AI investments.
U.S. indices open lower
U.S. stocks opened lower on Thursday as disappointing results from major technology companies renewed concerns about the returns on artificial intelligence investments. The weakness in technology shares added to investor caution as markets assessed corporate earnings and the outlook for AI-related spending.
At 9:32 a.m. ET, the Nasdaq Composite was down 1.5% at 26,162.35, while the S&P 500 fell 0.4% to 7,711.81 and the Dow Jones Industrial Average shed 0.4% to 52,246.24.
"A more cautious tech mood is the main theme in markets as we go to print, as underwhelming results from Alphabet and Samsung have renewed doubts about the returns on AI spending," Deutsche Bank analysts said in a morning note.
Alphabet shares fell more than 10% in premarket trading after the Google parent reported third-quarter profit below expectations, largely reflecting disappointing revenue from its Google Services unit.
Meanwhile, the U.S. personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, matched expectations across the board in September. The data came a day after the Fed held interest rates steady, signalling that policymakers could wait for more economic evidence before making further changes to monetary policy.
Original Article
TSX slips as gold miners tumble on earnings, US inflation data
Whirlpool downgraded to B by S&P as earnings slump pushes leverage to 11x
Aschenbrenner seeks Fluidstack investment at $40 billion valuation - Bloomberg
