Equities fell in early trade on Friday in a broad retreat led by banks and energy stocks as crude oil prices fell and domestic retail sales data disappointed.
The S&P/TSX Composite Index tumbled 128.17 points, or 1%, to open the last session of a shortened week at 12,803.19. The market is still on track for a 3% gain on a week which began on Tuesday, the day after Family Day closed the markets.
The Canadian dollar dropped 0.5 cents to 72.37 cents U.S.
Fairfax Holdings reported a lower-than-expected quarterly profit, hurt by higher losses on its investments.
Fairfax shares scaled back $6.82 to $764.21.
KBW cut the target price on Bank of Montreal to $77.00 from $79.00. BMO shares shed 94 cents, or 1.3%, to $73.76.
Barclays raised the target price on Canadian Tire Corp to $143.00 from $140.00 with an overweight rating. Canadian Tire shares added 53 cents to $126.16.
National Bank Financial raised the target price on OceanaGold Corp to $3.85 from $3.65. Oceana shares retreated eight cents, or 2.1%, to $3.83.
On the economic front, Statistics Canada reported that the consumer price index rose 2.0% in the 12 months to January, after increasing 1.6% in December. On a seasonally adjusted monthly basis, the Consumer Price Index increased 0.2% in January, following a 0.1% increase in December.
Moreover, retail sales fell 2.2% in December to $43.2 billion, following a 1.7% rise in November. Declines were widespread as lower sales were reported in 10 of 11 sub-sectors, representing 97% of retail trade.
The agency reported that later snowfalls and unseasonably warm weather in many parts of Canada may have contributed to lower seasonal purchases.
ON BAYSTREET
The TSX Venture Exchange nicked up 1.03 points to 526.91
All but two of the 13 TSX subgroups were lower at the outset, with energy failing 2.2%, health-care down 2%, and financials off 1.3%.
The two gainers were metals and mining, up 2.5%, and gold, up 1.4%.
ON WALLSTREET
U.S. stocks traded lower Friday, continuing to consolidate after solid gains earlier in the week, as oil fell back below $30.00 U.S. a barrel.
The Dow Jones industrial average jettisoned 114.92 points to 16,298.51. Caterpillar and Boeing were the greatest contributors to declines on the Dow.
The S&P 500 slid 11.53 points to 1,906.30. Energy fell more than 1% in morning trade to lead all S&P 500 sectors lower.
The NASDAQ index moved back 19.63 points to 4,467.90
As of the close Thursday, the major U.S. averages were up more than 2.5% for the week so far, on pace for their best week since November. Markets stateside were closed Monday for Presidents Day.
In earnings news, Deere reported earnings that beat by 10 cents but revenue missed as the strong dollar weighed. The heavy equipment maker said its financial condition is strong, but it expects another "challenging" year ahead.
In economic news, the consumer price index showed a 0.3% rise ex-food and energy in January. The headline inflation figure was unchanged from the previous month. Year-over-year, the core CPI moved up 2.2%, the largest rise since June 2012
Prices for the 10-year Treasury gained a bit of ground, lowering yields to 1.73% from Thursday’s 1.74%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.04 a barrel to $29.73 U.S.
Gold prices fell $2.13 to $1,228.74 U.S. an ounce.
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