Equity markets in Canada’s biggest centre fell on Friday as a rout in commodity prices pushed mining and energy stocks toward deeper losses, while disappointing earnings and some profit taking also added to the declines.
The S&P/TSX composite index faded 79.13 points to end the day and week at 14,186.24
The Canadian dollar was unchanged at 76.71 cents U.S.
Valeant Pharmaceuticals International, which jumped more than 9% on Thursday after investors cheered its quarterly earnings results, was by far the biggest drag on the TSX. Shares fell $14.32, or 4.2%, to $326.70, sending the overall health-care sector down substantially.
Shares of Encana Corp, Canada’s leading natural gas producer, plunged 98 cents, or 8.7%, to $10.25 after it reported a bigger-than-expected quarterly loss.
Suncor Energy was off 57 cents, or 1.7%, to $33.08.
Goldcorp recovered from earlier losses to finish positive 68 cents, or 4.1%, to $17.34, but First Quantum Minerals did not fare so well, off 41 cents, or 3.3% to $11.88.
Teck Resources Ltd fell 70 cents, or 7.1%, to $9.23, despite beating expectations, as investors remained unhappy with bloated debt and hefty capital commitments.
Copper prices hit multi-year lows, dropping to $5,244 U.S. a tonne on demand worries from top metals consumer China.
ON BAYSTREET
The TSX Venture Exchange lost 5.61 points to 592.49.
All but four of the 14 TSX subgroups were lower on the day, global base metals subtracting 2.4%, energy surrendering 2.2% of its strength, and the metals and mining sector down 1.8%.
The four gaining groups were led by gold, leaping 4.4%, materials, up 0.9%, and telecoms, better by 0.7%.
ON WALLSTREET
U.S. stocks traded lower after briefly attempting gains on Friday, despite surprisingly strong Amazon earnings, as signs of slower global growth weighed on sentiment.
The Dow Jones industrial average stumbled 163.39 points to close Friday at 17,568.53, with DuPont leading 28 blue chips lower and Visa and Cisco the only advancers.
The S&P 500 jettisoned 20.73 points, or nearly 1%, to 2,081.42, with health-care leading nine sectors lower and telecommunications the only advancer.
The NASDAQ index dove 53.07 points, or 1%, to 5,093.34.
Among the firms posting results before the open, Biogen Idec beat on earnings but missed on revenue, as well as lowered full-year guidance.
American Airlines posted earnings that topped expectations on revenue a touch below forecasts. The airline also announced the authorization of an addition $2 billion U.S. in share buybacks.
VF Corp., the maker of North Face, Wrangler, and other apparel brands, posted earnings that beat on both the top and bottom lines. The firm also raised its full-year outlook.
Shares of Regeneron reopened down more than 3% after the Federal Drug Administration approved its new cholesterol drug.
Amazon shares traded about 12% higher after soaring more than 17% in the open to a record after reporting unexpected quarterly profit after the close Thursday. The e-commerce firm's market cap now surpasses that of Wal-Mart.
Starbucks and Visa also traded at all-time highs after beating on both the top and bottom line.
However, Capital One Financial missed expectations, with profit of $1.78 U.S. a share on $5.67 billion U.S. in revenue, flat year-over-year.
In deal-making news, Anthem said on Friday it would buy Cigna in a deal valued at $54.2 billion U.S, creating the largest U.S. health insurer by membership.
The U.S. flash manufacturing PMI for July edged up to 53.8, from a 20-month low hit in June.
New home sales showed a decline of 6.8% to a seven-month low in June.
Prices for 10-year U.S. Treasuries were slightly higher, thus lowering yields to 2.26% from Thursday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices erased 49 cents a barrel to $47.96 U.S.
Gold prices added $3.70 to $1,097.80 U.S. an ounce.
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