Canada's main stock index fell midday Friday, weighed down 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 120.04 points to pause for lunch Friday at 16,486.72.
The Canadian dollar ditched 0.11 cents to 75.80 cents U.S.
The largest percentage gainer on the TSX was Ballard Power Systems, which jumped $1.88, or 9.5%, to $21.75, while Cineplex forfeited gains and plunged 38 cents, or 4.2%, to $8.74 after it said all its theatres and entertainment venues will be operational by Friday.
Units of Summit Industrial Income REIT fell 40 cents, or 3.2%, the most on the TSX, to $11.99, after it announced $150-million bought deal financing.
The second biggest decliner was copper producer First Quantum Minerals, down 46 cents, or 3.6%, to $12.44.
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. Boeing shares reached noon EDT in New York down 12 cents to $169.46.
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, lifted by strong U.S. economic data, to end a week that saw the broader market reach a record level.
The Dow Jones Industrials surged 61.36 points to pull into noon hour Friday at 27,801.09.
The S&P 500 eked forward 0.23 points at 3,385.74
The NASDAQ Composite tallied 18.63 points to 11,283.58.
The S&P 500 has gained 0.4% for the week and the NASDAQ is up over 2% in that time.
The lion’s share of those gains has been driven by strong gains in Big Tech stocks. Apple is up 7% 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 2.4% in that time.
Apple shares rose 4% to an all-time high, building on this week’s strong gain. Chevron and Exxon Mobil dropped more than 1% each, however, as oil prices fell by more than 3%. Deere and Foot Locker were up 5.8% and 2.4%, respectively, on better-than-expected quarterly results.
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.
On the economic front, data from IHS Markit showed U.S. manufacturing activity hit its highest level in 19 months in August, while services were at their highest level in 17 months.
Elsewhere, existing home sales for July saw a record month-over-month spike of 24.7%. The average selling price for homes also hit an all-time high, jumping to $304,100.
Prices for the 10-Year Treasury gained ground by noon, lowering yields to 0.64% from Thursday’s 0.65%. Treasury prices and yields move in opposite directions.
Oil prices faded $1.21 to $41.61 U.S. a barrel.
Gold prices came off their lows, but still trailed Thursday’s close by $1.10 to $1,945.40 U.S. an ounce.
