Stocks Foresee Worst Week in Months, Despite Noon Hour Rise

GDP in View

Equities in Canada’s largest centre managed to raise themselves by their own bootstraps by midday on Friday, thought on course to record their worst weekly performance in eight months, pressured by health-care stocks.

The TSX Composite came out its dungeon by noon hour, acquiring 34.48 points to 20,104.73

The Canadian dollar gained 0.15 cents to 78.99 cents U.S.

Canadian stocks have gained more than 15% this year, helped by accommodative central bank policies and hopes of an economic recovery, although persisting fears of inflation and a slowdown in global economic growth have knocked the index down from the record highs touched recently.

Lightspeed POS jumped 74 cents to $122.96,, while Docebo lost $1.44, or 1.6%, to $91.05.

On the economic beat, Statistics Canada reported real gross domestic product edged down 0.1% in July, as gains in services-producing industries were more than offset by declines in goods-producing industries.

ON BAYSTREET

The TSX Venture Exchange gained back 1.39 points to 860.26

Seven of the 12 TSX subgroups were still negative by noon hour, as health-care weighed on things 2% while gold and consumer staples each descended 0.7%.

The five gainers were co-led by energy and financials, picking up 0.6% ech, while industrials were better by 0.5%.

ON WALLSTREET

U.S. stocks pushed higher on Friday as news of a new oral treatment for COVID-19 boosted shares of companies tied to the economic recovery.

The Dos Jones Industrials leaped 270.77 points to 34,114.69,

The S&P 500 advanced 22.61 points to 4,330.15

The NASDAQ Composite gathered 18.9 points to 14,467.48, hoping to break a string of six straight losing sessions.

Shares of Dow member Merck jumped 7% after the drug maker and Ridgeback Biotherapeutics said their oral antiviral treatment for COVID-19 reduced the risk of hospitalization or death by 50% for patients with mild or moderate cases. The companies plan to seek emergency authorization for the treatment.

The new drug from Merck appeared to boost travel stocks. Shares of Royal Caribbean and Las Vegas Sands added 3% and 2%, respectively. Southwest Airlines led a gain in airline stocks after JPMorgan upgraded the stock and said most of the group was worth buying for a trade. Bank stocks rose as well, helping the Dow outperform.

The market just capped a tumultuous September as inflation fears, slowing growth and rising rates kept investors on edge. The S&P 500 finished the month down 4.8%, breaking a seven-month winning streak. The Dow dumped 4.3%, and the NASDAQ fell 5.3%, suffering their worst months of the year.

On the data front, personal income rose 0.2% in August, in line with expectations. The price index for core personal consumption expenditures was up 3.6% year over year, slightly ahead of the estimate of 3.5% from economists surveyed by Dow Jones.

Congress was poised to prevent a government shutdown Thursday. The Senate and House both passed a short-term appropriations bill that would keep the government running through Dec. 3 and sent it to President Joe Biden to sign.

On the data front, personal income rose 0.2% in August, in line with expectations. The price index for core personal consumption expenditures was up 3.6% year over year, the biggest jump in more than 30 years slightly ahead of the estimate of 3.5% from economists surveyed by Dow Jones.

Prices for 10-year Treasurys were higher, lowering yields to 1.48% from Thursday’s 1.50%. Treasury prices and yields move in opposite directions.

Oil prices gained 18 cents to $75.21 U.S. a barrel.

Gold prices moved upward $5.60 to $1,799.70 U.S. an ounce.