American Market News


Indexes Stagger into Weekend


Shopify, Suncor Take Lumps

Dec 14 2018 04:23 pm EST


Markets in Canada''s stumbled into the end of the second-last week before Christmas, as weakness in the tech and energy sectors weighed heavily on the indexes.

The S&P/TSX Composite Index slouched 155.28 points, or 1.1%., to end Friday and the week at 14,595.07

The Canadian dollar fell 0.17 cents to 74.73 U.S.

Shopify fell $27.41, or 12.7%, to $187.71, after the e-commerce company raised $400 million in equity. BlackBerry doffed 14 cents, or 1.4%, to $10.13.

In the energy sector, Suncor lost $1.39, or 3.4%, to $39.57, while Canadian Natural Resources docked $1.12, or 3.2%, to 34.18

Alamos Gold, down 27 cents, or 6.3%, was among the biggest decliners on the main index, priced at $3.99, after reporting that two of its employees were presumed dead after an accident in its mine. Elsewhere in gold, Kinross Gold lost four cents, or just over 1%, to $3.84.

One of the few progressive stocks on the TSX was Wheaton Precious Metals Corp, which jumped $3.26, or 14.7%, to $25.42, after the company reached a settlement with Canada Revenue Agency on a tax dispute regarding foreign income.

ON BAYSTREET

The TSX Venture Exchange lost 1.58 points to 555.38.

All 12 TSX subgroups remained negative on the day, with information technology plummeting 5%, energy dipped 3.3%, and gold dulled in price 2.2%.

ON WALLSTREET

Stocks fell sharply on Friday after weaker-than-expected datain China and Europe exacerbated concerns of a global economic slowdown.

The Dow Jones Industrial Average tumbled 496.87 points, or 2%, to 24,100.51, led lower by declines in Apple and Johnson & Johnson. For the year, the Dow is now down 2.5%.

The S&P 500 descended 50.59 points, or 1.9%, to 2,599.95, as the consumer staples and health-care sectors lagged. The broad index also closed down 2.8% for 2018.

The NASDAQ dropped 159.67 points, or 2.3%, to 6,910.67. Friday''s losses wiped out the gains for the week across the major indexes.

Shares of Apple fell 3.2% after TF International Securities slashed its iPhone shipment estimates by 20%.

Johnson & Johnson, another Dow member, fell 10% after media reports circulated that the company knew about asbestos in its baby powder for decades.

Stocks initially surged this week amid hopes the U.S. and China would be able to strike a permanent deal on trade. On Friday, China said it would suspend an additional tariff on U.S. autos. China also confirmed it would reduce a 40% charge on U.S. auto imports to 15% for 90 days.

But the uncertainty around the ongoing negotiations has kept investors on edge recently. Data from research service Lipper found that more than $46 billion were pulled out in a week from U.S. stock mutual funds and ETFs, the most ever.

China reported industrial output and retail sales growth numbers for November that missed expectations. This is the latest sign shown by China that its economy may be slowing down. The data also underscored the rising risks to China''s economy as Beijing works to resolve an ongoing trade war with the U.S.

Industrial production in China grew by 5.4% for November on a year-over-year basis, the slowest pace in almost three years. Retail sales, meanwhile, grew at their slowest rate since 2003.

Prices for the benchmark for the 10-year U.S. Treasury were higher, lowering yields 2.90% from Thursday''s 2.91%. Treasury prices and yields move in opposite directions

Oil prices retreated $1.49 to $51.09 U.S. a barrel.

Gold prices slumped $5.20 to $1,242.20 U.S. an ounce.