TSX on Road to 4th Straight Weekly Decline - InvestingChannel

TSX on Road to 4th Straight Weekly Decline

Equities in Canada’s largest market opened lower on Friday and headed for its fourth consecutive weekly loss, weighed down by weakness in energy and mining shares.

The TSX Composite Index deducted 89.52 points to begin the week’s last session at 21,560.89.

The Canadian dollar faded 0.63 cents to 78.79 cents U.S.

Bank of Canada Governor Tiff Macklem said on Thursday supply pressures were showing no signs of easing and the central bank will be watching the impact of higher interest rates on inflation to gauge how much it needs to tighten policy.

CIBC raised the rating on Cogeco Inc to outperform from neutral. Cogeco shares acquired a nickel to $112.83

CIBC revised the rating on Shaw Communications to tender from outperform. Shaw shares were virtually unchanged at $38.77.

CIBC cut the rating on Telus to neutral from outperform, and raised the price target to $34.00 from $33.50. Telus shares handed over 22 cents to $33.49.

On the economic front, Statistics Canada reported retail sales edged up 0.1% to $59.9 billion in February.

Higher sales at clothing and clothing accessories stores and gasoline stations were offset by lower sales at motor vehicle and parts dealers.

The agency’s industrial product price index The Industrial Product Price Index rose 4.0% month over month in March, the largest monthly change on record since the series began in 1956.

Year over year, the index increased 18.5%, its biggest gain since December 1974, StatsCan’s raw materials price index was up 11.8% on a monthly basis in March and 42.7% year over year.

ON BAYSTREET

The TSX Venture Exchange eased 1.63 points, to 853.98.

Eight of the 12 TSX subgroups were lower in the first hour Friday, with consumer discretionary stocks down 1.4%, financials poorer 1.1%, and industrial issues off 0.9%.

The four gainers were led by health-care, up 0.7%, while energy and information technology each eked up 0.2%.

ON WALLSTREET

Stocks were lower on Friday as the S&P 500 tried to avoid a third down week in a row, amid busy earnings and rising bond yields.

The Dow Jones Industrials continued their plunge, losing 350.46 points, or 1%, to 34,442.30.

The S&P 500 skidded 28.41 points to 4,365.25.

The NASDAQ Composite reversed course and moved higher 8.99 points to 13,183.65.

For this week, the Dow is down 0.07% and on pace for its third losing week in a row. The S&P is down 0.8% on the week and attempting to break a two-week losing streak. The NASDAQ is down 1.6% week to date, on track to post its third negative week in a row.

Meanwhile, earnings season continues with mixed results, though they remain a tailwind for stocks, analysts say.

Health-care stocks led S&P 500 declines Friday. HCA Healthcare dropped 15% on weak full-year earnings and revenue guidance. Intuitive Surgical fell 10%, and Universal Health Services dipped 9%.

Snap shares fell 3% as the social media platform reported first-quarter revenue short of expectations even after showing strong growth in daily users.

Gap shares plunged 13% after the company announced the CEO of its Old Navy division, Nancy Green, is leaving the business this week. Gap also slashed its outlook for net sales growth in fiscal 2022.

American Express shares were down slightly despite the company reporting quarterly earnings and revenue beats. Verizon shares fell almost 3% after the company reported a loss of 36,000 monthly phone subscribers in the first quarter.

Treasury prices were unchanged, keeping yields at Thursday’s 2.89%.

Oil prices subtracted $1.09 at $102.70 U.S. a barrel.

Gold prices dipped $1.30 to $1,946.90 U.S. an ounce.

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