Bay Street Likely To See Mixed Start; Canadian Inflation Data, U.S. Bank Earnings In Focus

Slightly higher oil prices and weak cues from Asian and European markets indicate a slightly mixed start for Canadian stocks Tuesday morning.

However, Canadian consumer price inflation data, and earnings updates from U.S. bank majors Morgan Stanley and Goldman Sachs are expected to determine the mood in early trades on Bay Street.

Data on Canadian inflation for the month of December is due at 8:30 AM ET.

The annual rate of inflation in Canada came in at 3.1% in November, remaining unchanged from the previous month. Core inflation rose to 2.8% in November from 2.7% in the previous month.

Canadian housing starts data for the month of December is due at 8:15 AM ET.

Goldman Sachs Inc reported fourth quarter net earnings of $1.87 billion of $5.48 per share, up from $1.19 billion or $3.32 per share in the year-ago quarter.

Morgan Stanley’s fourth-quarter bottom line totaled $1.38 billion or $0.85 per share, compared with $2.11 billion or $1.26 per share a year ago.

In Canadian company news, CGI Inc. (GIB.A.TO) said Tuesday that it has launched a new computer vision service, called CGI Machine Vision. The new offering uses artificial intelligence to transform asset and infrastructure monitoring.

Teck Resources Ltd. (TECK.B.TO) said its copper production for the fourth quarter of 2023 came in at 103,500 tonnes and sales amounted to 101,200 tonnes. For the full year 2023, production totaled 296,500 tonnes, falling short of the 2023 production guidance of 320,000-365,000 tonnes. Full-year 2023 zinc production was 644,000 tonnes, just shy of the 645,000-685,000 guidance, the company added.

The Canadian market ended on a firm note on Monday, as stocks shrugged off a slightly weak start and moved higher in cautious trade.

Shares from utilities, energy, healthcare, communications and consumer staples sectors posted gains, contributing to the market’s uptick.

With the U.S. market closed for Martin Luther King Jr. Day, and Canadian inflation data due later in the week, the mood remained…