Equities in Canada’s biggest market index retreated a bit by noon ET on Friday, as a rally in shares of cannabis companies was offset by losses in gold and materials.
The S&P/TSX Composite Index slid 11.5 points to approach noon hour Friday at 15,529.10
The Canadian dollar gained 0.23 cents higher to 76.41 cents U.S.
Tech shares were unchanged, weighed down by Celestica, which plunged $2.21, or 16.9%, the most on the TSX, to $10.85 after its fourth-quarter revenue and adjusted profit fell below expectations.
Its decline was followed by Teck Resources, down 68 cents, or 2.1%, to $31.32, after the diversified miner warned that its fourth-quarter profit will be significantly below market estimates, hurt by "disappointing" business at its energy and trail operation units.
On the bright side, health-care issues advanced, helped by a rally in shares of cannabis producers. The largest percentage gainers on the TSX were Aphria, which surged $1.04, or 9.1%, to $12.45, and Cronos Group, which rose $2.17, or 8.4%, to $27.92.
The headline seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index fell back to 53.0 in January from 53.6 in December. Although still above the crucial 50.0 no-change threshold, the latest reading pointed to the weakest improvement in overall business conditions since December 2016.
ON BAYSTREET
The TSX Venture Exchange gained 0.29 points to 623.01
Eight of the 12 TSX subgroups were lower, as gold dulled in price 1.6%, while materials fell 1.1%, and consumer discretionary stocks wilted 1%
Health-care stocks rose 2.2%, while the other gainers were financials, eking up 0.1%, and industrials, edging up 0.01%.
Information technology stocks were flat by noon hour.
ON WALLSTREET
Stocks rose on Friday, the first day of February, after the U.S. government released jobs growth data that easily beat expectations.
The Dow Jones Industrials remained robust, jumping 149 points to 25,148.67, led by Merck and Exxon Mobil.
The S&P 500 added 9.73 points to 2,713.83, as gains in energy and tech offset a decline in the consumer discretionary sector.
The NASDAQ Composite gained 11.83 points to 7,293.66.
The moves Friday come after Wall Street posted its biggest January gain since 1987 on Thursday. Strong earnings and an indication from the Federal Reserve that it will pause rate hikes boosted investor confidence. The S&P 500 ended January up more than 7%.
Wall Street also digested key earnings from companies like Amazon, Merck and Exxon Mobil. On Thursday, Amazon reported better-than-expected earnings and revenue for the fourth quarter.
However, the company issued weaker-than-expected revenue guidance for the first quarter and warned about increasing investments.
These concerns pushed Amazon shares down by 5%.
Merck, meanwhile, posted a better-than-expected profit and revenue, sending its shares up by 3.9%. Exxon Mobil shares rose 3% after the company reported better-than-expected earnings. Chevron also gained 3% on a stronger-than-forecast profit.
So far, more than 45% of S&P 500 have reported earnings this season. Of those companies, 68.1% have topped analyst expectations,
The stateside economy added 304,000 jobs in January, according to data released by the U.S. Bureau of Labor Statistics. Economists expected the U.S. economy to have added 170,000 jobs in January.
The report follows a 35-day U.S. government shutdown. It also marks the 100th straight month of jobs growth. Investors had been awaiting the report in search of clues about the state of the economy.
Prices for the benchmark 10-year U.S. Treasury dropped sharply, raising yields to 2.69% from Thursday’s 2.64%. Treasury prices and yields move in opposite directions.
Oil prices gained 75 cents to $54.54 U.S. a barrel.
Gold prices sank $3.20 to $1,322.00 U.S. an ounce.
Related Stories
