Gains for equities in Canada’s biggest market were subdued on Friday as weak monthly retail sales raised worries over the impact of the COVID-19 pandemic, while delays in vaccine rollouts and weak jobs data weighed on weekly performance.
The S&P/TSX Composite picked up 18.88 points to begin the last session of a shortened week at 18,292.95.
The Canadian dollar jumped 0.4 cents to 79.26 cents U.S.
Magna International on Friday forecast full-year revenue above analysts' estimates after fourth-quarter profit surged 67% on a rebound in vehicle sales from pandemic lows.
Magna shares began Friday up $8.45, or 8.8%, to $104.15.
CIBC raises target price on Canadian Tire to $202.00 from $198.00. Canadian Tire shares gave back 18 cents to $175.60.
CIBC also raised the target price on CCL Industries to $72.00 from $70.00. CCL shares docked 40 cents to $65.75.
Canaccord Genuity cut the rating on Superior Plus to hold from buy. Superior shares drooped 64 cents, or 4.6%, to $13.34.
On the economic front, Statistics Canada said retail sales posted their largest decline since the low of April driven by the COVID-19 pandemic, decreasing 3.4% to $53.4 billion in December.
ON BAYSTREET
The TSX Venture Exchange restored 17.34 points, or 1.6%, to 1,089.43.
The 12 TSX subgroups were evenly divided in Friday’s first hour, with health-care taking on 2.2%, consumer discretionary stocks up 1.9%, and materials prospering 0.8%.
The half-dozen laggards were weighed most by consumer staples, down 0.9%, communications, sliding 0.8%, and utilities, off 0.6%.
ON WALLSTREET
Stocks rose on Friday after Treasury Secretary Janet Yellen said a large COVID relief package is needed for a full recovery in the U.S.
The Dow Jones Industrials climbed 93.27 points to 31,586.61,
The S&P 500 recovered 8.29 points to 3,922.26
The NASDAQ Composite jumped 56.47 points to 13,921.89.
Friday’s gains weren’t enough to scrub the S&P 500's losses for the week: The index was down 0.3% for the period as of the latest reading.
The Dow Jones Industrial Average has fared better with a slight gain of 0.25%. The NASDAQ is down 1.2% since last Friday’s close.
Cyclical stocks started out on strong footing with the industrials improving 1%, financials and energy sectors each better by 0.9%. Utilities and communications services stocks were among the biggest laggards.
Applied Materials, which makes the equipment used to manufacture semiconductors, gave a better-than-expected second-quarter forecast after the bell Thursday. The shares gained 7% Friday. Other chip-related stocks also rose, including Lam Research, AMD and Nvidia.
Yellen told reports after Thursday’s bell that more stimulus is necessary even as some economic data suggested a rebound is already underway. She added a $1.9-trillion stimulus deal could help the U.S. get back to full employment in a year.
Many on Wall Street agree with Yellen that a large stimulus is needed and that a trillion-dollar package, along with a smooth economic reopening this year, will cause the market rally to continue.
The House of Representatives will try to pass a $1.9-trillion coronavirus relief plan before the end of February, Speaker Nancy Pelosi said Thursday. Democratic Congressional leaders may try to pass a package without votes from Republicans.
Prices for 10-Year Treasurys lost ground, raising yields to 1.34% from Thursday’s 1.29%. Treasury prices and yields move in opposite directions.
Oil prices sank 40 cents to $60.12 U.S. a barrel.
Gold prices added $8.70 to $1,783.70
