Equities Fold Yet Again - InvestingChannel

Equities Fold Yet Again

The general malaise placed over stocks in Toronto continued into Friday’s final bell, as much suspense remains over whether the Bank of Canada has another rate hike in store next week.

The TSX Composite nose-dived 233.17 points, or 1.2%, to close Friday at 19,115.64. On the week, the index lost nearly 350 points, or 1.78%.

The Canadian dollar backpedaled 0.13 cents at 73.03 cents U.S.

In the communications realm, Rogers dumped $1.44, or 2.8%, to $50.57, while Cogeco Communications fell $1.94, or 3.3%, to $57.29.

Financials also took it on the chin, with Canadian Imperial Bank of Commerce falling $1.66, or 3.3%, to $48.66, while National Bank slid $3.10, or 3.5%, to $85.45.

In real-estate, units of Canadian Apartment REIT dipped $1.23, or 2.8%, to $42.28, while those for Boardwalk REIT subsided $1.89, or 2.8%, to $65.865.

Only gold held out against the negative tide, with Barrick Gold triumphant 51 cents, or 2.2%, to $23.25, while Novagold Resources grabbed 11 cents, or 2.1%, to $5.27.

On the economic calendar, Statistics Canada told investors retail sales decreased 0.1% to $66.1 billion in August. Sales were down in six of nine subsectors and were led by decreases at motor vehicle and parts dealers.

ON BAYSTREET

The TSX Venture Exchange faded 3.08 points to 520.74. On the week, the index handed over 8.4 points, or 1.59%.

All but one of the 12 TSX subgroups lost ground Friday, with communications sliding 2%, financials down 1.9%, and real-estate declining 1.5%.

Only gold did some positive business, gaining 0.7%.

ON WALLSTREET

Stocks retreated Friday as a surge in the 10-year Treasury yield prompted broader concerns about the state of the economy.

The Dow Jones Industrials swooned 286.89 points at Friday’s closing bell to 33,127.28, dragged down by American Express following a mixed earnings report.

The S&P 500 index dropped 53.84 points, or 1.3%, to 4,224.16.

The NASDAQ index declined 202.37 points, or 1.5%, to 12,983.81.

The S&P 500 is down 2.2% on the week, while the Dow has lost 1.5%. The NASDAQ is off 3%, for its second straight week of losses.

American Express shares dipped more than 5%. The company’s earnings per share beat expectations, but revenue was about in line with estimates. Non-interest revenue, meanwhile, missed a StreetAccount consensus forecast.

Solar stocks were also among the biggest decliners. The move came after SolarEdge slashed its third-quarter revenue guidance, sending the stock down more than 27%.

Nvidia, the closely followed artificial intelligence stock, was on pace for its worst week since September 2022 with a loss of nearly 9%. It was one of multiple semi stocks that struggled this week after the U.S. Department of Commerce announced plans to tighten restrictions on sales of advanced artificial intelligence chips to China.

Tesla was on track to end the week more than 15% lower, which would be its worst week since December 2022. The electric vehicle maker, which reported earnings on Wednesday, missed Wall Street expectations on both lines for the first time since 2019.

The yield on the benchmark 10-year Treasury crossed 5% for the first time in 16 years on Thursday. The 10-year yield hit 5.001% around 5 p.m. ET, the first time it has traded above that level since July 20, 2007 — when it yielded as high as 5.029%.

Prices for the 10-year Treasury moved forward, lowering yields to 4.91% from Thursday’s 4.98%. Treasury prices and yields move in opposite directions.

Oil prices slid 35 cents to $89.02 U.S. a barrel.

Gold prices advanced $11.60 to $1,999.70.

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