American Market News


TSX Ends Lower on Day, Week


Resources Win Day, Techs, Discretionaries Punished

Oct 18 2019 04:30 pm EST


Equities in Canada''s largest centre finished Friday lower, on weakness in consumer and health-care stocks, and amid concerns about slowing

growth in China.

The TSX Composite Index faded into the red 49.18 points to 16,377.12, a weekly drop of 72.2 points, or 0.44%,

The Canadian dollar crept up 0.03 at 76.14 cents U.S.

Gold and materials were in the green, as Barrick Gold picked up a dime to $22.59, while Centerra Gold gained a nickel to $12.63.

Teck Resources acquired 12 cents to $21.62, while Agnico Eagle Mines strengthened 72 cents, or 1%, to $71.16.

Equitable Group led a mini-charge by financial stocks, up $1.09, or 1%, to $108.92, while Home Capital Group climbed 20 cents, or 1.6%, to $26.63.

Gildan Activewear fell $11.76, or 25.3%, the most on the TSX, to $34.73, after the company lowered its full-year profit forecast. Canada Goose Holdings shares couldn''t take flight, losing $1.22, or 2.3%, to $52.40

Techs also suffered, as Shopify dived $22.46, or 5.2%, to $413.14, while BlackBerry slid 15 cents, or 2.1%, to $6.69.

Among health-care concerns, Canopy Growth skidded 71 cents, or 2.6%, to $26.60, while Aurora Cannabis lost 29 cents, or 5.7%, to $4.82.

ON BAYSTREET

The TSX Venture Exchange remained lower 1.64 points to 542.43, a drop on a short week of 16.3 points, or 2.9%

The 12 Toronto subgroups were split evenly between gainers and losers, as gold, materials and financials each gained 0.2%.

The half-dozen laggards, though, were weighed most by consumer discretionary stocks, fading 2.8%, information technology, off 2.6%, and health-care dumped 2.4%.

ON WALLSTREET

The Dow Jones Industrial Average fell sharply on Friday, weighed down by steep losses in Boeing and Johnson & Johnson. The broader market was also pressured by a decline in Netflix shares that led other Big Tech stocks lower.

The 30-stock index jettisoned 255.68 points to end the day at 26,770.20. Boeing dropped 6.8% — its biggest one-day drop since February 2016 — on news that company instant messages suggest the aerospace giant misled regulators over the safety systems of the 737 Max.

Johnson & Johnson slid 6.2% after the company recalled some baby powder upon finding traces of asbestos.

Friday''s losses wiped out the Dow''s gains for the week. The index closed down 0.2% week to date.

The S&P 500 fell 11.75 points to 2,986.20. The NASDAQ Composite sank 67.31 points to 8,089.54. Netflix shares dropped more than 6%. Facebook, meanwhile, slid 2.2% while Amazon fell 1.6%. Alphabet shares pulled back 0.4%.

Both indexes were able to post solid gains for the week despite Friday''s decline. The S&P 500 rose 0.5% week to date while the NASDAQ gained 0.4% as enthusiasm around the first batch of corporate earnings lifted market sentiment.

More than 70 S&P 500 companies have reported calendar third-quarter earnings this week. Of those companies, 81% have posted better-than-expected results.

Weak data from China weighed down the market on Friday.

Some of the companies posting stronger-than-forecast results this week include Bank of America, Netflix, J.P. Morgan Chase and Morgan Stanley. Coca-Cola continued that trend on Friday, rising more than 2%. Their results helped push the major indexes higher for the week.

Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to 1.75% from Thursday''s 1.76%. Treasury prices and yields move in opposite directions.

Oil prices dipped 19 cents to $53.74 U.S. a barrel.

Gold prices flopped $4.20 to $1,494.10 U.S. an ounce.

Dow Thuds 250+ to End Week