Resource and financial companies were the main culprits behind a sharply lower session on the Toronto stock market Friday afternoon as traders wonder if economic conditions warrant further moves up for stocks.
The S&P/TSX composite index dropped 74.15 points to conclude the week at 14,514.74
The Canadian dollar nicked higher 0.20 cents to 92.09 cents U.S.
Markets in Canada will be closed Monday for Victoria Day
In earnings news, private equity firm Onex Corp. reported quarterly consolidated net profit of $99 million, up from a net loss of $271 million a year ago.
Revenues were up 3% to $6.5 billion. Onex says it's increasing its quarterly dividend 33 per cent to five cents and its shares declined $1.09 to $62.26.
Financials declined, ahead of the release of quarterly earnings by the big banks starting next week. TD shares faded 31 cents to $51.55, while Royal Bank of Canada dropped 43 cents to $72.77
The gold sector faded as Barrick Gold fell 25 cents to $18.05
The energy sector dropped strength, as Imperial Oil lost nine cents to $53.01, and Suncor slumped 76 cents to $42.10
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The base metals sector was down, while July copper was unchanged at $3.15 a pound. Teck Resources was off 30 cents to $24.61.
On the economic slate, Statistics Canada reported that investors in this country acquired $7.9 billion of foreign securities in March, the largest such outflow of funds since November 2012. Meanwhile, foreign investors reduced their holdings of Canadian securities by $1.2 billion, the first monthly divestment this year.
ON BAYSTREET
The TSX Venture Exchange gained 2.05 points to 976.70
All but two of the 14 Toronto subgroups were lower, weighed mostly by gold, down 1.1%, energy stocks, off 1%, and financials, sliding 0.8%.
The two gainers were health-care, up 0.8%, and real-estate, up 0.3%
ON WALLSTREET
Stocks staged a modest rebound late Friday, though the major gauges are still in the red for the week as worries about the economic recovery grow.
The Dow Jones Industrial Average gained 44.50 points to end the day and week at 16,491.31
The S&P 500 was stronger by 7.01 points to 1,877.86, and the NASDAQ composite index recovered 21.30 points to 4,090.59
While the overall market was treading water, a number of well-known stocks were making moves.
Darden Restaurants announced plans to sell its Red Lobster chain to private equity firm Golden Gate Capital $2.1 billion U.S. The company, which also owns Olive Garden, plans to use the proceeds to pay down debt. But the stock fell more than 3% on the news.
Shares of WWE fell more than 40% after the company unveiled a new television distribution agreement with Comcast-owned NBCU late Thursday.
WWE expects the deal to result in losses ranging from $35 million U.S. to $52 million U.S. over the next two years, depending on how many people sign up to watch the Raw and Smackdown broadcasts.
General Motors agreed to pay a $35 million U.S. to settle a federal probe into the company's decision to delay a recall of vehicles with faulty ignition switches for 10 years.
The company has been hit with a string of high-profile recalls lately, and investors seemed to take the news in stride. GM shares were down 1%.
J.C. Penney shares surged about 15% as the retailer posted quarterly sales that beat expectations and revealed a smaller-than-expected loss.
Luxury retailer Nordstrom shares also soared on better-than-expected earnings.
Verizon shares were up about 2% after Warren Buffett's investment firm, Berkshire Hathaway, revealed it had purchased a stake worth nearly $530 million U.S. in the company.
Recent economic data has been mixed, and reports released Friday added to concerns about the lackluster recovery. An early reading on consumer sentiment in May unexpectedly fell, but a report on new home construction in April was strong.
Two companies began trading for the first time Friday.
TrueCar, a website that offers users guaranteed pricing on cars, priced its initial public offering of stock at $9 U.S. a share, well below the expected range. But the stock rose more than 10% once it started trading.
Jumei International Holdings, the largest online seller of beauty products in China, rose nearly 15% in its debut. That's after the company boosted the size of its IPO and priced the stock above the range at $22 U.S. a share.
Strong demand for Jumei could be a sign that investors will have a similarly big appetite for Chinese e-commerce king Alibaba once it begins trading later this year.
Prices for 10-year U.S. Treasuries sagged, upping yields to 2.52% from Thursday’s 2.50%. Treasury prices and yields move in opposite directions
Oil prices gained 59 cents to $102.09 U.S. a barrel.
Gold prices ditched $1.10 to $1,292.50 U.S. an ounce.
