Fuitures Lower as Ukraine Conflict Escalates - InvestingChannel

Fuitures Lower as Ukraine Conflict Escalates

Futures for Canada’s main stock index slid on Friday as the escalating Russia-Ukraine war kept investors on the edge, although the benchmark index was on track for its second consecutive week of gains.

March futures on the S&P/TSX index were down 0.9%.

The S&P/TSX Composite shed 38.9 points Thursday to 21,216.74.

Reports of a fire near Ukraine’s Zaporizhzhia nuclear power plant, following fighting with Russian forces, added to worries about the escalating conflict.

Although further losses were capped by strength in oil prices as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies.

ATB Capital Markets raised the rating on Hexo Corp. to “sector perform” from “underperform”

RBC raised target price on Park Lawn Corp:. to $53 from $50

Canaccord Genuity cut the price target on Toronto-Dominion Bank to $106.00 from $110.50

On the economic slate, Statistics Canada reported the total value of building permits decreased 8.8% to $10.1 billion in January. The residential sector fell 11.6% to $6.7 billion, while the non-residential sector declined 2.7% to $3.4 billion.

The IVEY Purchasing Managers Index for February is duie out later this morning (10 a.m. EST)

ON BAYSTREET

The TSX Venture Exchange lost 8.04 points Thursday to 846.92.

ON WALLSTREET

Stock futures fell early Friday as worrisome developments in Ukraine weighed on sentiment as investors digested latest reading on the jobs market.

Futures tied to the Dow Jones Industrial Average dropped 268 points, or 0.8%, to 33,470. Those for the S&P 500 declined 32 points, or 0.7%, to 4,327.25, while NASDAQ futures moved down 106.98 points, or 0.8%, to 13,924.50.

The Dow is down 0.9% for the week, on track for its fourth negative week in a row. The S&P 500 is down about 0.5% for the week, while the NASDAQ is down more than 1%.

The decline in futures followed reports that smoke was visible from a nuclear power plant in Ukraine — the largest in Europe — after Russian troops attacked. Reports Friday morning indicated that Russian forces had seized the plant in Zaporizhzhia.

The situation in Ukraine is rapidly deteriorating, and dispatches from the country are difficult to confirm.

Futures trimmed their losses after a stronger-than-expected February jobs report. The economy added 678,000 jobs last month, above the 440,000 expected by economists, according to Dow Jones. The unemployment rate ticked down to 3.8%.

This is the last jobs report before the Federal Reserve’s next meeting, where the central bank is expected to begin hiking interest rates. Fed Chair Jerome Powell said this week that he is leaning toward support a single 25-basis point hike in March. A basis point is equal to 0.01%.

Earnings reports drove some big moves in extended trading. Retailer Gap and restaurant chain Sweetgreen both surged after beating expectations. Chipmaker Broadcom rose after outpacing estimates for earnings and revenue.

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