Stock market: winners and losers on May 14

(Illustration: Camille Charbonneau)

Canada’s main stock index fell slightly on Tuesday, led by weaker energy shares, while U.S. markets rose and the Nasdaq hit a new record.

“I think the market consensus may be a bit lower than the economist consensus for tomorrow’s (US) CPI,” said Jules Boudreau, chief economist at Mackenzie Investments.

The report will provide a better overview of the data the US Federal Reserve has to determine when it will start cutting interest rates.

Tuesday’s report on producer price inflation, another measure of inflation that appeared too high at first glance, Jules Boudreau said.

But he said markets recovered from their initial negative reaction to the news after a closer reading showed downward revisions in previous months and the components putting upward pressure on producer prices were those the central bank was paying less attention to.

“The most dynamic components in April were the components that don’t really count in the numbers that the Fed looks at,” said Jules Boudreau.

“So because of all these numbers, probably on the internet, it’s actually an encouraging number for PPI ahead of tomorrow’s CPI.”

As for Fed Chairman Jerome Powell, speaking at a roundtable in Amsterdam on Tuesday, he said the central bank was unlikely to raise its key interest rate despite stubborn inflation. He described the producer price report as “mixed,” not “burning.”

The speech brought nothing new to investors, Jules Boudreau said.

“I think he’s going to say the same thing he’s been saying for a while until he’s willing to change his mind, which is that rates are going to stay high for a long time,” he said.

Small-cap stocks outperformed on Tuesday, Jules Boudreau noted, likely in part because of stock market memes, but also as a generally positive sign that companies other than big tech names will benefit from rate cuts when they intervene.

Here are the winners and losers for May 14, 2024:

S&P/TSX TSE index
Price Change ($CAN) Change (%)
The winners
Hudbay Minerals (HBM) 13.71 1.84 28,264
Tucows (TC) 27.69 3.17 12,928
BlackBerry (BB) 4.73 0.50 11.82

Optiva (OPT)



Fennec Pharmaceuticals (FRX) 10.02 -3.70 -26.968

Only titles worth more than $1 are considered in the winner/loser rankings.

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