Equity markets opened lower on Friday, weighed by energy stocks as oil prices fell on concerns of a slow recovery in fuel demand due to the coronavirus-induced economic slowdown.
The TSX plummeted 121.51 points to begin the week’s last session at 16,485.25.
The Canadian dollar ditched 0.3 cents to 75.61 cents U.S.
Credit Suisse raised the target price on Canadian Imperial Bank of Commerce to $95.00 from $91.00. CIBC shares backed off two cents to $97.60.
Credit Suisse also cut target price on Bank of Nova Scotia to $56.00 from $59.00. Scotiabank shares lost 42 cents to $55.62.
Canaccord Genuity raised the target price on Keyera Corp to $29.00 from $25.00. Keyera shares settled six cents to $24.79.
On the economic slate, the federal government on Thursday outlined a plan to move the unemployed off an emergency COVID-19 income-support program and onto an expanded employment insurance plan that requires people to look for a job to qualify.
Transport Canada plans to conduct flight test activities for the validation of Boeing Co's grounded 737 MAX next week.
Statistics Canada said retail sales rose 23.7% in June to $53.0 billion. The agency goes on to say sales were 1.3% higher than in February, prior to the COVID-19 pandemic, as more regions moved ahead with plans to reopen their economies.
What’s more, the agency’s new housing price index advanced 0.4% in July, with central Canada leading the way. In Ontario, nine out of 10 new housing markets surveyed posted increases, while in Quebec, four out of five of census metropolitan areas recorded price gains.
ON BAYSTREET
The TSX Venture Exchange fell back 5.48 points to 734.
All but one of the 12 TSX subgroups lost ground in the first hour of trading Friday, with gold dulling in price 2.5%, materials, skidding 2.2%, and energy, feeling 1.3% less energetic.
There were no gainers, but industrials were unchanged.
ON WALLSTREET
Stocks rose on Friday to end a week that saw the broader market reach a record level. However, concerns over a new coronavirus stimulus bill kept the market’s gains in check.
The Dow Jones Industrials gained 19.71 points to begin Friday’s session at 27,759.44.
The S&P 500 eked forward 0.66 points at 3,386.17
The NASDAQ Composite tallied 20.01 points to 11,284.97.
Earlier this week, the S&P 500 broke above its late-February high and notched a fresh all-time high. The NASDAQ also hit a record on Thursday. The S&P 500 ended Thursday’s session up 0.4% for the week while the tech-heavy NASDAQ was up over 2% week to date.
The lion’s share of those gains has been driven by strong gains in Big Tech stocks. Apple is up nearly 3% this week and became the first publicly traded company in the U.S. to reach a market valuation of $2 trillion. Amazon and Alphabet have rallied over 4% this week and Microsoft is up 2.7% in that time.
House Speaker Nancy Pelosi told the media both sides need to reach a deal on a more comprehensive stimulus package as millions struggle with being furloughed and unemployed amid the coronavirus pandemic.
Pelosi’s comments come as Democrats and Republicans have been at a stalemate over additional unemployment benefits that expired last month.
Democrats have indicated they want to reinstated the additional assistance at the original $600-per-week rate; Republicans have offered to extend the benefits at a lower rate.
Prices for the 10-Year Treasury were unchanged, keeping yields at Thursday’s 0.65%.
Oil prices faded 60 cents at $42.22 U.S. a barrel.
Gold prices slid $9.20 to $1,937.30 U.S. an ounce.
