Markets Experience Profit-Taking to End Week

BlackBerry Slammed

Equities in Canada stumbled at the end of the last full week of the calendar year, with real-estate and information technology stocks weighing the whole market.

The TSX dropped 118.31 points to conclude Friday at 17,534.63, dipping into the red for the week 14.29 points.

The Canadian dollar lost 0.37 cents to 78.17 cents U.S.

Real-estate took the most punishment Friday, as Broadwalk REIT fell $1.19, or 3.4%, to $34.22, while Allied Property REIT gave back $1.29, or 3.3%, to $38.11.

In techs, BlackBerry was turned black and blue, losing $1.68, or 16%, to $8.83, while Enghouse Systems swooned $4.32, or 6.4%, to $63.57.

In resource stocks, Osisko Mining was negative 14 cents, or 3.7%, to $3.69, while Pretium Resources slid 51 cents, or3.4%, to $14.66.

Communications tried to provide a buffer, as Corus Entertainment picked up 13 cents, or 3.2%, to $4.23, while Cogeco Communications climbed $1.09, or 1.1%, to $99.89.

In consumer discretionary stocks, Canadian Tire galloped $3.72, or 2.2%, to $169.92. Gildan Activewear gained $1.17, or 3.4%, to $35.83.

From the economic platform, Statistics Canada reported retail sales edged up 0.4% to $54.6 billion in October, marking the sixth consecutive monthly increase since the record decline in April. The sales growth was led by motor vehicle and parts dealers.

ON BAYSTREET

The TSX Venture Exchange slumped 0.73 points on the day to 816.20, but enjoyed a gain on the week of 35.9 points, or 4.6%, to 816.20.

All but two of the 12 TSX subgroups were negative, with real-estate and information technology sagging 1.2% each, while financials slid 0.6%.

The two gainers were energy, up 1.1 %, while health-care added 0.5%.

ON WALLSTREET

Stocks slipped from record highs in volatile trading on Friday as lawmakers struggled to bridge differences on additional coronavirus stimulus measures.

The Dow Jones Industrials recovered from their lows of the morning, but were still negative 124.32 points from Thursday’s all-time highs to 30,179.05. Still, the 30-stock index gained on the week more than 132 points, or 0.4%.

The S&P 500 removed 13.07 points to 3,709.41. Despite falling off its all-time highs, the S&P nearly 46 points over the last five sessions, or 1.25%.

The NASDAQ retreated 9.11 points from Thursday’s record closing high, to 12,755.64. On the week, the gain was an astounding 378 points, or 3.05%.

The stock market experienced massive volume on Friday as Tesla’s historic entry into the S&P 500 will be based on prices at the close. There was a rush of activity into the final bell and the S&P 500 will begin trading with Tesla as a member on Monday.

With a market capitalization of more than $600 billion after a 700% rally this year, the electric carmaker will be joining as the seventh-largest company in the index.

Tesla is being added to the benchmark in one fell swoop, marking the largest rebalancing of the S&P 500 in history. It’s estimated that passive funds tracking the S&P 500 needed to buy more than $85 billion of Tesla, while selling $85 billion of the rest of the index to make room for it.

Shares of Tesla rose to hit an all-time high on Friday in volatile trading. More than 180 million shares of Tesla changed hands, quadrupling the 30-day average volume.

Senate Majority Leader Mitch McConnell said Friday that the negotiations 'remain productive. In fact, I am even more optimistic now than I was last night that a bipartisan, bicameral framework for a major rescue package is very close at hand," he added

House Majority Leader Steny Hoyer said in the afternoon that the chamber would go into a recess until 5 p.m. while congressional leaders try to get a “clearer picture” of how to move forward. He told representatives to keep Friday night, Saturday and Sunday free.

Last-minute disputes preventing Congress from passing a relief deal include direct payments, small business loans and a boost to unemployment insurance.

As the market closed, Congress was trying to approve a measure to keep the government running for two more days.

Prices for the 10-Year Treasury were lowering, raising yields to 0.95% from Thursday’s 0.93%. Treasury prices and yields move in opposite directions.

Oil prices improved 69 cents to $49.05 U.S. a barrel.

Gold prices backpedaled $4.30 to $1,886.10.