Equities in Toronto fell in Friday’s first hour, weighed down by losses in energy shares, as oil prices fell on rising worries over the potential economic damage from a coronavirus outbreak that has spread to around 20 countries.
The TSX Composite Index collapsed 99.15 points to begin the week’s and month’s last session at 17,391.41
The Canadian dollar gave back 0.07 cents to 75.60 cents U.S.
The largest percentage gainers on the TSX were Detour Gold, which jumped $1.08, or 4.7%, to $23.98, and Kirkland Lake Gold, which rose $2.28, or 4.3%, to $55.32.
Methanex fell $3.55, or 7.6%, the most on the TSX, to $42.89, after TD Securities cut its price target on stock. The second biggest decliner was First Quantum Minerals Ltd, down 66 cents, or 6%, to $10.35.
Cott Corp said on Friday it would sell its S&D Coffee and Tea business to privately owned Westrock Coffee Co for $405 million in cash, as it looks to focus on its more profitable water business. Cott stock soared 83 cents, or 4.3%, to $20.22.
RBC raised the target price on CAE to $41.00 from $39.00. CAE shares acquired a dime to $39.68.
Scotiabank raised the target price on Exco Technologies to $8.50 from $8.00. Exco shares dropped 14 cents, or 1.8%, to $7.52.
CIBC raised the target price on Intact Financial to $145.00 from $141.00. Intact shares strengthened 73 cents to $143.61.
On the economic slate, Statistics Canada’s industrial product price The Industrial Product Price Index edged up 0.1% in December, driven primarily by higher prices for primary non-ferrous metal products.
The agency’s raw materials price index hiked 2.8%, mainly due to higher prices for crude energy products.
Moreover, November’s Gross Domestic Product edged up 0.1% in November, offsetting most of the decline in October.
ON BAYSTREET
The TSX Venture Exchange recovered 2.14 points, to 577.30.
Eight of the 12 TSX subgroups stubbed their collective toes, with energy faltering 1.8%, consumer discretionaries down 1.4%, and health-care slumping 1.3%.
The four gainers were led by gold, up 1.1%, materials, better by 0.4%, and utilities, eking up 0.2%.
ON WALLSTREET
Stocks fell broadly on Friday, wiping out the Dow Jones Industrial Average’s gain for January, as investors grew increasingly worried about the potential economic impact of China’s fast-spreading coronavirus.
The 30-stock index dumped 319.4 points, or 1.2%, to 28,540.04.
The S&P 500 fell 29.04 points at 3,254.62
The NASDAQ sank 61.61 points to 9,237.33.
The major averages slid even as Amazon surged 9% to a $1 trillion market value, joining an elite club shared only by Apple, Microsoft and Alphabet.
Still, the S&P 500 was on pace for its fifth straight monthly gain, gaining 0.9% in January. The NASDAQ is up 3.1% and is also on track for a five-month winning streak. The Dow, however, was headed for its first monthly loss since August.
Las Vegas Sands and Wynn Resorts, two stocks that are coronavirus proxies given their gaming exposure in China, fell more than 1.5% each. Airline stocks such as American and United dropped more than 2.5% each while Delta slid 1.6%.
In corporate news, Caterpillar shares fell 1% after the industrial giant’s CEO warned about “global economic uncertainty” in the company’s latest quarterly earnings report. Caterpillar also issued disappointing earnings guidance for 2020. Those losses were mitigated, however, by a 8.6% surge in Amazon shares.
Amazon posted a quarterly profit and revenue that easily beat analyst expectations. Amazon Web Services, the company’s cloud business, saw stronger-than-expected revenues.
Investors are nearly halfway through the corporate earnings season. More than 70% of the 226 S&P 500 companies that have reported have beaten analyst earnings expectations.
China’s National Health Commission confirmed on Friday that there have been 9,692 confirmed cases of the coronavirus, with 213 deaths.
The World Health Organization (WHO) recognized the deadly pneumonia-like virus as a global health emergency on Thursday, citing concern that the outbreak continues to spread to other countries with weaker health systems. WHO’s designation was made to help the United
Nations health agency mobilize financial and political support to contain the outbreak.
The virus, which was first discovered in the Chinese city of Wuhan, has now spread to at least 18 other countries and has dampened sentiment over global economic growth.
Prices for the 10-Year U.S. Treasury gained sharply, driving yields down to 1.54% to from Thursday’s 1.59%. Treasury prices and yields move in opposite directions.
Oil prices decreased 33 cents to $51.81 U.S. a barrel.
Gold prices lost $2.20 to $1,587.00 U.S. an ounce.
