U.S. inflation slowed more than expected in January, easing some pressure on markets and helping fuel gains in gold producers, airlines and semiconductor stocks. Investors are weighing what the softer data means for interest rates while reacting to a wave of corporate earnings.
BNN Bloomberg spoke with Andrew Pyle, senior investment advisor and senior portfolio manager at CIBC Wood Gundy, about the Federal Reserve’s likely path and the strong performances from companies including Agnico Eagle, Air Canada, Airbnb, Applied Materials and Bombardier.
Key Takeaways
- U.S. consumer-price growth slowed to 2.4 per cent in January, triggering a relief rally but not yet guaranteeing a shift in Federal Reserve policy.
- Agnico Eagle rose after strong results and higher gold output, as elevated bullion prices and production gains boosted investor confidence.
- Air Canada reported a profit beat, with domestic and transatlantic travel strength offsetting weaker Canada-U.S. routes.
- Airbnb posted upbeat results as travellers shift destinations and seek flexible, lower-cost booking options.
- Applied Materials and Bombardier advanced on solid earnings, supported by sustained semiconductor demand and resilient business jet sales despite regulatory uncertainty.
Read the full transcript below:
LINDSAY: Right now, investors are digesting the latest economic data from the U.S., which shows inflation slowed more than expected in January, offering hope the U.S. inflation problem could be easing. Consumer-price growth slowed to an annual pace of 2.4 per cent. For more on that, we’re joined by Andrew Pyle, senior investment advisor and senior portfolio manager at CIBC Wood Gundy. It’s good to see you. Thanks for joining us.
ANDREW: Good to see you, Lindsay. Thanks for having me.
LINDSAY: What do you make of these latest CPI numbers? Do they offer a bit of hope?
ANDREW: I think there’s a glimmer of hope. Markets are obviously relieved this morning. Given what we saw in anecdotal energy costs in January, and the cold snap in the U.S., a lot of economists were anxious this number could come in on the hot side. It didn’t, so that’s where your relief rally is coming from this morning.
I don’t think we’re out of the woods. A lot of people are saying this puts Fed easing back in play, perhaps for the first or second quarter. I don’t think the Fed is going to change its game plan based on this one number. There’s still a lot of uncertainty in the inflation makeup in the U.S.
LINDSAY: So you don’t think there’s going to be a change in terms of the Fed’s plan. How many rate cuts do you think we’re going to see this year? Some analysts are saying two. Some are saying maybe three. What do you think?
ANDREW: We still think you could get one to two, and that’s dependent on inflation remaining at these levels or lower. The only way you’re going to get three or more is if you have a more protracted decline in inflation, which we don’t think is in the cards right now, or you get an outright recession in the United States, which would put the Fed back in the game.
For now, we’re sticking with a one- to two-rate-cut plan for 2026.
LINDSAY: We’re also watching earnings. Let’s start with Agnico Eagle, which in its latest results claimed the No. 2 spot globally for gold output, knocking Barrick out of that position. What do you make of what we’re seeing from Agnico?
ANDREW: Incredible results. We’re obviously keying off the extremely high price for gold, but it’s also the fact that we’re seeing output increase. That’s where analysts are going to be very happy. Owners of the stock are going to be pleased as well, given the move higher.
They’re delivering on the guidance they’ve given in recent quarters — increasing output and improving margins with a higher gold price. Being the second-largest producer in the world gives you an even stronger demand push for the stock.
LINDSAY: We’re also watching Air Canada. It hasn’t been the best week for the airline after announcing it would suspend flights to Cuba because of a fuel shortage. We saw shares fall earlier this week, but the company reported a profit beat. What do you make of the results?
ANDREW: It’s a theme you’re going to see across sectors — a shift in travel toward Europe and domestic destinations based on what we’ve seen coming out of the U.S. Travellers are steering clear of destinations they once would have chosen and moving plans domestically or toward Europe.
You’ve also got major global events driving travel demand. We’ve seen similar trends with Airbnb, where demand is increasing outside the U.S. So overall, strong results and some relief for the company after the turbulence — pardon the pun — in the stock over the past week.
LINDSAY: It’s interesting to see companies like Airbnb almost benefiting from tensions between the U.S. and Canada. Will Air Canada and Airbnb be able to continue offsetting that tension?
ANDREW: They can, but this is hugely uncertain. There’s no clarity right now. What we do know is travellers are making different destination choices. Europe, for example, is a high-cost region when it comes to hotels. That’s where a company like Airbnb can pick up the slack, offering a lower price point and a different experience. That’s part of why we’re seeing the results we are.
LINDSAY: We’re also watching Applied Materials, up sharply after reporting strong results and an upbeat sales forecast. What’s contributing to that?
ANDREW: There’s still extremely healthy demand for semiconductors. After a week where we’ve heard more talk about a broadening selloff in tech, it’s interesting to see pockets of strength. Applied Materials is one of them.
Demand for semiconductors and memory continues to improve, and companies in that space can do well even if there’s a general decline in sentiment toward the broader tech sector.
LINDSAY: Lastly, Bombardier beat on revenue and surpassed its 2025 guidance. But could there be turbulence ahead?
ANDREW: The results are strong and the market likes what it’s seeing. But we still have uncertainty around the U.S., including potential regulatory decisions affecting aircraft. That’s a question mark. If it’s resolved positively, 2026 could look clearer. Until then, that uncertainty may keep some investors on the sidelines.
LINDSAY: Andrew Pyle, senior investment advisor and senior portfolio manager at CIBC Wood Gundy. Thanks so much for joining us.
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This BNN Bloomberg summary and transcript of the Feb. 13, 2026 interview with Andrew Pyle are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
