TSX Slumps to End Week

Interrent, Transalta Falter

Equities in Canada’s largest centre stumbled their way to the finish of the week, as real-estate and utility stocks failed to retain strength.

The S&P/TSX Composite Index remained 15.45 points to close Friday and the week at 16,514.61

The Canadian dollar discarded 0.22 cents to 75.42 cents U.S.

Real-estate stocks weighed things down with Interrent REIT units dropping 46 cents each, or 3.4%, to $13.00, while Altus slipped $2.14, or 4.3%, to $47.66.

In utilities, Transalta Corp. doffed 15 cents, or 1.8%, to $8.44, while Capital Power Corporation fell 35 cents, or 1.2%, to $28.83.

Techs also took their bruises, with Absolute Software tailing off 40 cents, or 2.6%, to $15.28, while Celestica faltered 27 cents, or 2.4%, to $10.85.

Consumer stocks led gainers, as Spin Master triumphed $1.65, or 5.9%, to $29.49, while BRP tacked on $1.66, or 2.7%, to $63.09.

Energy stocks also soared, with Seven Generations forging up 22 cents, or 5%, to $4.59, while MEG Energy popped 20 cents, or 5.1%, to $4.15.

In communications, Cineplex tallied 45 cents, or 5.5%, to $8.64.

On the macroeconomic front, Statistics Canada reported manufacturing sales rose by a record 20.7% to $48.7 billion in June, following an 11.6% increase in May.

ON BAYSTREET

The TSX Venture Exchange skidded 3.74 points, to 737.65.

Eight of the 12 TSX subgroups were negative, with real-estate sliding 1.1%, utilities backing away 0.8%, and information technology swooning 0.7%.

The four gainers were led by consumer discretionary stocks, up 0.6%, while energy gained 0.5%, and communications perked 0.3%.

ON WALLSTREET

Stocks finished Friday mostly flat as the S&P 500 once again failed to overtake its February record highs. Traders also pored over mixed economic data and looked to Washington for clues on further coronavirus stimulus.

The Dow Jones Industrials gained 34.3 points to end Friday and the week at 27,931.02.

The S&P 500 fell back 0.58 points to 3,372.85. The broader market index traded above its record closing high several times this week before falling short of the milestone.

The NASDAQ sank 23.2 points to 11,019.30.

Big Tech came under modest pressure in late-day trading as shares of Amazon went south 0.4%, Alphabet lost 0.8%, and Apple slumped 0.1%.

Stocks that would benefit most from economic reopening, however, helped offset some of the losses. United Airlines, Delta and Southwest were each up at least 0.5%. Carnival Corp gained 1.6%, and Norwegian Cruise Line rose 2.6%. Nordstrom shares advanced more than 2%.

The major stock indexes all clinched weekly gains despite Friday’s muted trading action. The S&P 500 added 0.64% for the week, its third straight weekly gain. The Dow advanced 1.8% this week. The NASDAQ, the relative laggard, climbed less than 0.1% since last Friday’s close.

Traders also pored over over mixed economic data and looked to Washington for clues on further coronavirus stimulus.

Retail sales for July rose 1.2%, the Commerce Department said. That’s below a Dow Jones estimate of 2.3%. Excluding autos, however, retail sales rose 1.9% to top a forecast of 1.2%.

In Washington, lawmakers seem unable to move forward with a coronavirus stimulus bill.

House Speaker Nancy Pelosi has said she will not restart talks with Republicans on the matter until they increase their aid offer by $1 trillion.
White House economic advisor Larry Kudlow also reporters that the administration and Democrats were at a “stalemate.”

Prices for the 10-Year Treasury went slightly forward, lowering yields to 0.71% from Thursday’s 0.72%. Treasury prices and yields move in opposite directions

Oil prices dipped eight cents at $42.16 U.S. a barrel.

Gold prices docked $18.30 to $1,952.10 U.S. an ounce.