Equities in Toronto overcame early losses, and surging in Friday’s first hour, powered by material and gold concerns.
The S&P/TSX Composite began the week’s last session up 34.6 points to 21,155.66
The Canadian dollar gained 0.39 cents to 78.48 cents U.S.
Magna International on Friday lowered its annual profit forecast, as a global semiconductor shortage and rising raw material prices pressure vehicle production.
Magna shares ducked 34 cents to $79.58.
National Bank of Canada raised the rating on Alamos Gold to outperform from sector perform. Alamos shares grew 22 cents, or 2.2%, to $10.20.
RBC raised the target price on Canadian Utilities to $41.00 from $38.00. Canadian Utilities shares acquired a dime to $39.04.
CIBC raised the target price on Toromont Industries to $125.00 from $123.00. Toromont shares skidded $3.04, or 2.5%, to $117.66.
On the economic front, Statistics Canada reported Gross Domestic Product grew 1.1% in February.
ON BAYSTREET
The TSX Venture Exchange added 4.77 points, or 1.2%, to 823.20.
Seven of the 12 TSX subgroups began the day in plus territory, with materials surging 1.8%, while gold and health-care shares improved 1.5% each.
The five laggards were weighed most by industrials, sliding 0.7%, while communications and utilities each suffered 1.5%.
ON WALLSTREET
U.S. stocks fell Friday with the S&P 500 on pace for the worst month since March 2020, as Amazon became the latest victim in the technology-led selloff.
The Dow Jones Industrials dropped 330.4 points, or 1%, to 33,585.99.
The S&P 500 slid 56.72 points, or 1.3%, to 4,230.66.
The NASDAQ Composite flopped 160.21 points, or 1.2%, to 12,711.32.
Stocks were set to close out a dismal month as investors have contended with a slew of headwinds, from the Federal Reserve’s monetary tightening, rising rates, persistent inflation, COVID case spikes in China and the ongoing war in Ukraine.
The S&P 500 is down about 6%, on pace for its worst monthly performance since the onset of the COVID pandemic. The NASDAQ is down around 10%, also its worst month since March 2020. The Dow is off by roughly 3% for the month.
Technology stocks have been the epicenter of the April selloff as high interest rates hurt valuations, and supply chain issues stemming from COVID and the war in Ukraine disrupt business.
Amazon on Friday sunk more than 12% — its biggest drop in more than a decade — after the e-commerce giant reported a surprise loss and issued weak revenue guidance for the second quarter.
Apple shares kept the market at bay, marginally even after management said supply chain constraints could hinder fiscal third-quarter revenue. The stock was down in the premarket, but analysts said to buy the dip.
Friday wraps up one of the busiest weeks for the first-quarter earnings season and a particularly intense one for tech companies, which have driven investor sentiment throughout the week.
Intel also reported earnings Thursday evening. The stock fell 5% after the company issued weak guidance for its fiscal second quarter.
Shares of Robinhood rose more than 2%, even after the company reported a wider-than-expected loss, shrinking revenue and a decrease in monthly active users.
About 80% of S&P 500 companies have beat quarterly earnings expectations, with about half of the index’s members having reported results so far, according to FactSet.
A hot inflation reading Friday underscored the difficult environment. The core personal consumption expenditures price index — the Fed’s preferred inflation gauge — rose 5.2% from a year ago.
Treasury prices gained ground, lowering yields to 2.87% from Thursday’s 2.83%. Treasury prices and yields move in opposite directions.
Oil prices moved up $1.75 to $107.11 U.S. a barrel.
Gold prices brightened $18.20 to $1,909.50 U.S. an ounce.
