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TSX Ends Notably Lower

Save for a very brief while at the start, the Canadian stock market stayed weak on Tuesday and eventually ended the session notably lower.

Data showing a drop in manufacturing sales in the month of July weighed a bit on the market.

Investors also reacted to the data from U.S. Labor Department that showed consumer prices increased by slightly less than expected in the month of August.

Healthcare, energy and telecom stocks were the major losers. Several shares from industrials and financial sectors too closed on a weak note, while a few stocks from materials and consumer discretionary sections moved up.

The benchmark S&P/TSX Composite Index ended down by 113.16 points or 0.55% at 20,553.25.

Healthcare shares Tilray Inc (TLRY.TO) and Cronos Group (CRON.TO) ended lower by 3.7% and 3.4%, respectively. Organigram Holdings (OGI.TO) ended 2.8% down and Canopy Growth Corp (WEED.TO) declined 2.5%.

Among energy stocks, Cenovus Energy (CVE.TO) declined 2.85%, Parex Resources (PXT.TO) lost 2.1%, Suncor Energy (SU.TO) ended nearly 2% down, Canadian Natural Resources (CNQ.TO) and MEG Energy (MEG.TO) both shed about 1.6%, and Imperial Oil (IMO.TO) ended lower by 1.4%.

Lithium Americas Corp (LAC.TO) climbed more than 7%. Teck Resources (TECK.B.TO) gained 4.7% and Oceanagold Corp (OGC.TO) gained nearly 3%. Silvercrest Metals (SIL.TO) and Sandstorm Gold (SSL.TO) gained 2.4% and 2.2%, respectively.

Consumer discretionary shares Canada Goose Holdings (GOOS.TO), Dollarama (DOL.TO) and Aritzia Inc (ATZ.TO) gained 1 to 1.6%. Brp Inc (DOO.TO) ended nearly 1% up.

Data released by Statistics Canada this morning showed manufacturing sales in Canada dropped by 1.5% from a month earlier to C$ 59.6 billion in July 2021, following an upwardly revised 3.6% rise in June and compared to a preliminary estimate of a 1.2% decrease.

The U.S. Labor Department said its consumer price index rose by 0.3% in August after climbing by 0.5% in July. Economists had expected consumer prices to increase by 0.4%.

The somewhat tame U.S. inflation data generated optimism that the Federal Reserve may delay plans to begin scaling back stimulus. However, comments from economists suggest the central bank might begin tapering its asset purchases in December.

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