Equities in Canada’s largest centre slipped on Friday morning after alternative lender Home Capital Group Inc acknowledged uncertainty about its ability to continue as a going concern.
The S&P/TSX Composite Index changed direction and skidded 19.34 points to approach noon at 15,531.21
The Canadian dollar fell 0.12 cents to 72.45 cents U.S.
Home Capital fell 11.8% to $9.53 after it said in an earnings release late on Thursday that worries about its future funding capabilities had cast "significant doubt" on its ability to continue as a going concern.
Hudson's Bay Co fell 6.5% to $10 after the retailer reported disappointing quarterly same-store sales figures.
In the materials group, Teck Resources rose 2.3% to $25.38 after agreeing to sell its stake in a British Columbia dam and related assets for $1.2 billion.
Online gambling company Amaya rose 3.1% to $26.47 after beating profit expectations.
ON BAYSTREET
The TSX Venture Exchange remained buoyant 2.57 points to 790.95
Eight of the 12 TSX subgroups were higher by midday, with gold shinier 1.4%, materials up 0.9%, and telecoms up 0.4%.
The four laggards were weighed most by financials, sliding 0.7%, information technology, off 0.6%, and industrials, worse off by 0.5%.
ON WALLSTREET
U.S. equities fell on Friday as investors digested a tough week for retailers as well as mixed economic data.
The Dow Jones Industrials Average had come to within 17.1 points of breakeven by noon ET at 20,902.32, with Goldman Sachs contributing the most losses. General Electric was the biggest laggard in the 30-stock index after Deutsche Bank downgraded the stock to sell from hold.
The S&P 500 inched faded 3.43 points to 2,391.02, with financials lagging
The NASDAQ inched up 2.83 points to 6,118.79
The fall in retailers came after J.C. Penney's stock dropped 10% in morning trade. The company reported mixed quarterly results, with earnings topping expectations but same-stores sales fell more than expected.
Several retailers, including Macy's and Nordstrom, have seen their stocks descend this week after reporting weaker-than-expected quarterly results, putting the sector under pressure.
Investors kept a close eye on the retail space as they assessed the strength of the U.S. consumer, a key component of the U.S. economy.
In economic news, the U.S. Commerce Department said retail sales increased 0.4% in April from March, less than expected.
Meanwhile, consumer prices rose 0.2% in April, in line with expectations. In the 12 months through April, the CPI increased 2.2%
While that was a slowdown from March's 2.4% increase, the year-on-year gain in the CPI was still larger than the 1.7% average annual increase over the past 10 years.
Prices for the benchmark 10-year Treasury note moved up sharply, lowering yields to 2.33% from Thursday’s 2.39%. Treasury prices and yields move in opposite directions.
Oil prices dropped 19 cents at $47.64 U.S. a barrel
Gold prices picked up $4.60 at $1,228.80 U.S. an ounce.
Related Stories
