TSX Suffers Slight Drop - InvestingChannel

TSX Suffers Slight Drop

Equity markets in Canada’s largest centre fell on Friday after a U.S. air strike in Baghdad killed a top Iranian commander, sharply escalating geopolitical tensions in the Middle East, but a jump in shares of energy companies limited losses.

The TSX Composite Index dropped 24.12 points to begin Friday at 17,075.83

The Canadian dollar inched back 0.02 cents to 76.99 cents U.S.

The largest percentage gainers on the TSX were Meg Energy, which jumped 38 cents, or 5.2%, to $7.72, and Baytex Energy, which rose nine cents, or 4.5%, to $1.97.

Air Canada fell $2.26, or 4.4%, the most on the TSX, to $47.79, and the second biggest decliner was First Quantum Minerals, down 33 cents, or 2.5%, to $12.95.

Cowen and Company cut the rating on The Maple Leaf Airline to market

perform from outperform.

CIBC raised the price target on Park Lawn Corp to $34.00 from $30.00. Park Lawn shares climbed $1.73, or 5.9%, to $31.30.

Jefferies cut the price target on Canopy Growth to $21.00 from $25.00. Canopy shares acquired 33 cents, or 1.3%, to $26.46.

ON BAYSTREET

The TSX Venture Exchange added 2.13 points to 590

Seven of the 12 TSX subgroups were on the downswing, as industrials moved backward 0.8%, while information technology and consumer discretionary stocks each slumped 0.7%.

The five gainers were led by energy, vaulting 2.1%, gold, better by 1.3%, and health-care, up 1%.

ON WALLSTREET

Stocks fell sharply on Friday after the U.S. confirmed that an airstrike killed Iran’s top military commander, sending oil prices surging and hiking geopolitical concerns.

The Dow Jones Industrials stumbled 257.35 points to start Friday at 28,611.45

The S&P 500 let go of 22.94 points to 3,234.91

The NASDAQ sank 70.24 points to 9,021.95.

Energy stocks were the lone winner on Friday. Concho Resources and Marathon Oil rose more than 2% each while Apache jumped traded more than 1.5% higher.

Airline stocks fell broadly on the threat of higher oil prices. United, American and Delta all dropped more than 2%.

A weaker-than-expected reading on the manufacturing economy also weighed on stocks. December’s Institute for Supply Management manufacturing index came in at 47.2, the weakest in a decade and smaller than the 49 reading expected by economists polled by Dow Jones.

The U.S. announced late Thursday that it had killed Iran’s top commander, Gen. Qasem Soleimani, in Baghdad in an airstrike. Soleimani had been a key figure in Iranian politics, and his death has raised concerns over a potential retaliation from the Iranian forces.

Prices for the 10-Year U.S. Treasury spiked, dropping yields to 1.82% from Thursday’s 1.88%. Treasury prices and yields move in opposite directions.

Oil prices gained $2.30 to $63.48 U.S. a barrel.

Gold prices added $23.00 at $1,551.10 U.S. an ounce.

Dow Drops Sharply After Attack on Iran