TSX Red by Noon - InvestingChannel

TSX Red by Noon

Canada’s main stock index came off its higher perch midday Friday, as a drop in gold prices drove down mining stocks.

The TSX dropped 27.5 points to move into noon hour Friday at 20,536.99.

The Canadian dollar removed 0.19 cents to 74.76 cents U.S.

In company news, Loblaw Companies edged up 89 cents to $126.02, after the retailer said it would spend $2 billion to expand its business in 2023 and create more than 6,000 new jobs in retail, supply chain, technology and construction in Canada.

Shares of Teck Resources rose 82 cents, or 1.4%, to $60.20, after a report said the copper miner’s biggest shareholder China Investment Corp (CIC) backed Glencore’s takeover offer, which would allow investors to exit their coal exposure for cash.

On the economic calendar, Statistics Canada reported manufacturing sales declined 3.6% in February, mainly on lower sales in the petroleum and coal product, motor vehicle and primary metal industries.

ON BAYSTREET

The TSX Venture Exchange dropped 3.35 points to 636.05.

Seven of the 12 TSX subgroups were in the minus category by noon hour, with gold collapsing 2.8%, materials weaker by 1.6%, and health-care down 0.5%

The five gainers were led by consumer discretionary stocks, up 0.5%, while consumer staples and financials each took on 0.3%.

ON WALLSTREET

The Dow Jones Industrial Average fell Friday as investors assessed a weak retail sales report, as well as stronger-than-expected corporate earnings.

The 30-stock index tumbled 215.38 points to pause for lunch Friday at 33,814.37.

The S&P 500 dipped 20.82 points to 4,125.40.

The NASDAQ fell 94.01 points to 12,072.27.

The disappointing retail sales data offset excitement around strong corporate earnings. JPMorgan Chase reported record revenue that beat analyst expectations, with the stock rising more than 7%. Wells Fargo shares were flat after reporting growing profits. These were the first bank earnings since the collapse of Silicon Valley Bank and Signature Bank last month.

UnitedHealth, which has the biggest weighting in the Dow, fell 2% even after the firm posted better-than-expected results.

Elsewhere, Boeing fell 6% after the aircraft maker warned of delivery delays for some of its 737 Max planes.

Expectations for this earnings season are downbeat. Analysts polled by Refinitiv expect S&P 500 earnings fell more than 5% in the first quarter. That forecast comes as companies deal with persistent inflation and higher rates.

Advanced retail sales data showed consumer spending fell twice as much as expected in March. Retail sales declined by 1% last month as consumers dealt with growing recession fears, more than the 0.5% fall expected by economists polled by Dow Jones.

Prices for the 10-year Treasury stepped back, raising yields to 3.53% from Thursday’s 3.45%. Treasury prices and yields move in opposite directions.

Oil prices advanced 56 cents to $82.72 U.S. a barrel.

Gold prices stumbled $44.40 to $2,010.90 U.S. an ounce.

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