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Equities Perk on U.S. Inflation Info

Stocks in Canada’s largest centre rose on Wednesday, with technology stocks leading gains, after data showed a slower-than-expected rise in U.S. inflation last month.

The TSX came back from Tuesday’s losses with a vengeance, leaping 154.26 points to open Wednesday at 19,732.56.

The Canadian dollar recovered 0.29 cents to 77.65 cents U.S.

Scotiabank assumed coverage on Cineplex with an outperform rating and price target of $20.00. Cineplex shares picked up 24 cents, or 2.2%, to $11.28.

CIBC cut the rating on Recipe Unlimited to tender from neutral. Recipe shares captured two cents to $19.68.

National Bank of Canada raised the target price on Spartan Delta to $22.50 from $20.00. Spartan shares jumped 55 cents, or 4.4%, to $13.10.

ON BAYSTREET

The TSX Venture Exchange revived 2.89 points to 666.72.

All but two of the 12 TSX subgroups were in the green in the first hour, with information technology ahead 2.2%, consumer discretionary jumping 1.5%, and financials richer by 1.3%.

The two laggards were energy, down 0.3%, and gold, duller in price 0.1%.

ON WALLSTREET

Stocks rose sharply on Wednesday after a key inflation reading showed a better-than-expected slowdown for rising prices.

The Dow Jones Industrials popped 530.77 points, or 1.6%, to 33,305.18

The S&P 500 rocketed 72.92 points, or 1.8%, to 4,195.39.

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The NASDAQ Composite sprang up 275.29 points, or 1.8%, to 12,769.22.

Major tech stocks were outpacing the broader market on Wednesday, with Tesla and Netflix climbing more than 3% each. Salesforce was the best performer in the Dow, rising 3.5%.

Earnings season also continues, with Disney’s quarterly results due after the bell.

The headline consumer price index for July rose 8.5% year over year, and was flat compared to June. Economists surveyed by Dow Jones were expecting increases of 8.7% and 0.2%, respectively.

Core inflation, which strips out volatile food and energy prices, also saw a smaller-than-expected increase.

The Federal Reserve will weigh the report, along with other key economic data, ahead of its September meeting where it is slated to hike interest rates again.

Treasury prices staggered, raising yields to 2.72% from Tuesday’s 2.78%. Treasury prices and yields move in opposite directions.

Oil prices lost $1.88 to $88.62 U.S. a barrel.

Gold prices dropped 10 cents to $1,812.20 U.S. an ounce.