Canadian Stocks Showing A Lack Of Direction

After failing to sustain an early move to the upside, Canadian stocks have shown a lack of direction over the course of the trading day on Thursday.

The benchmark S&P/TSX Composite Index has bounced back and forth across the unchanged line and is currently down 7.82 points or less than a tenth of a percent at 21,387.18.

The choppy trading comes as traders digest another reading on U.S. inflation, with a report from the Labor Department showing only a slight uptick in U.S. producer prices in the month of December.

The Labor Department said its producer price index for final demand edged up by 0.2 percent in December after jumping by an upwardly revised 1.0 percent in November.

Economists had expected producer prices to rise by 0.4 percent compared to the 0.8 percent increase originally reported for the previous month.

The report also showed the annual rate of producer growth slowed to 9.7 percent in December from a record high 9.8 percent in November.

Despite the lack of direction being shown by the broader market, technology stocks are following their U.S. peers lower, dragging the S&P/TSX Capped Information Technology Index down by 1.4 percent.

Considerable weakness is also visible among healthcare stocks, as reflected by the 1.6 percent drop by the S&P/TSX Capped Health Care Index.

On the other hand, consumer discretionary stocks have shown a strong move to the upside, driving the S&P/TSX Capped Consumer Discretionary Index up by 2.2 percent.

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