TSX to Break 3-Day Streak - InvestingChannel

TSX to Break 3-Day Streak

Equities in Canada’s biggest centre shed initial gains on Friday to snap their three-day winning streak due to weakness in materials sector, while strength in energy stocks and upbeat domestic retail sales data helped limit losses.

The TSX dropped 81.55 points to reach noon Friday at 17,571.39

The Canadian dollar lost 0.3 cents to 78.24 cents U.S.

BlackBerry fell $1.34, or 12.8%, the most on the TSX, to $9.17, after the cybersecurity firm missed Wall Street estimates for third-quarter revenue.

The second biggest decliner was Enghouse Systems, down $4.47, or 6.6%, to $63.42.

The largest percentage gainers on the TSX were media company Corus Entertainment, which added 16 cents, or 3.9%, to $4.26, and uranium producer Cameco, which rose 24 cents, or 1.4%, to $16.95.

From the economic platform, Statistics Canada reported retail sales edged up 0.4% to $54.6 billion in October, marking the sixth consecutive monthly increase since the record decline in April. The sales growth was led by motor vehicle and parts dealers.

ON BAYSTREET

The TSX Venture Exchange nosed ahead 0.56 points to 817.49.

All but two of the 12 TSX subgroups were negative, with real-estate and information technology sagging 1.2% each, while financials slid 0.6%.

The two gainers were energy, up 1.1 %, while health-care added 0.5%.

ON WALLSTREET

Stocks slipped from record highs on Friday as lawmakers rushed to bridge differences on additional coronavirus stimulus measures.

The Dow Jones Industrials tumbled 203.25 points from Thursday’s all-time highs to 30,100.12.

The S&P 500 removed 23.13 points to 3,699.35.

The NASDAQ retreated 29.89 points from Thursday’s record closing high, to 12,734.85.

The major averages are on track to post modest gains for the week. The S&P 500 is up 1.6% this week through Thursday’s close, heading for its fourth positive week in five. The Dow has gained 0.9% in this period, while the tech-heavy NASDAQ outperformed with a 3.1% rally for the week so far.

The stock market is expected to experience massive volume on Friday as Tesla’s historic entry into the S&P 500 is poised to occur based on prices at Friday’s close. There will be a rush of activity into the final bell and the S&P 500 will begin trading with Tesla as a member on Monday.

With a market capitalization of more than $600 billion after a 700% rally this year, the electric carmaker will be joining as the seventh-largest company in the index.

Shares of Tesla jumped as much as 4% to hit an all-time high on Friday. As of 11:20 a.m. ET, more than 38 million shares of Tesla have changed hands, already exceeding 85% of its 30-day average daily volume.

Meanwhile, the Tesla inclusion coincides with a quarterly event known as quadruple witching, when options and futures on indexes and equities expire. Many expect Friday to be one of the busiest trading days of the year.

Leaders on Capitol Hill said they are close to an agreement that would provide $900 billion in additional aid. The talks, which have stretched on for months, are up against the wire, with federal funding lapsing at 12:01 a.m. ET on Saturday.

Prices for the 10-Year Treasury were lower, raising yields to 0.94% Thursday’s 0.93%. Treasury prices and yields move in opposite directions.

Oil prices improved 65 cents to $49.01 U.S. a barrel.

Gold prices faded $1.50 to $1,887.50.