Equities in Canada’s largest market remained in negative territory Friday and looked doomed to record its worst week since October as concerns over vaccine rollouts weighed on sentiment, while stronger gold and silver prices helped limit losses.
The S&P/TSX Composite Index stumbled 185.2 points, or 1.1%, to approach noon EST Friday at 17,472.
The Canadian dollar moved forward 0.3 cents, however, to 78.23 cents U.S.
The largest percentage gainers on the TSX were First Majestic Silver, up $1.59, or 7.4%, and Blackberry, up $1.69, or 8.9%. to $20.49, driven by social-media hyped stock buying.
Real Matters fell 50 cents, or 2.9%, the most on the TSX, to $16.75, after multiple brokerages cut price target on the IT services provider's stock after its earnings miss on Wednesday. The second-biggest decliner was paper and packaging company Cascades, down 62 cents, or 4.1%, to $14.67.
On the economic slate, Statistics Canada reported the economy was on an upward track as 2020 neared an end, with Gross Domestic Product growing 0.7% in November. In all, some 14 of 20 industrial sectors were up in the month.
ON BAYSTREET
The TSX Venture Exchange popped 8.8 points, or nearly 1%, to 932.73.
All but three of the 12 TSX subgroups were on the down side looking up, as consumer discretionary and industrial issues each faded 2%, and financials poorer by 1.5%.
The trio of gainers consisted of gold, up 1.2%, materials, improving 0.5%, and health-care, inching up 0.01%.
ON WALLSTREET
U.S. stocks fell sharply on Friday after the trial result from Johnson & Johnson’s coronavirus vaccine disappointed some investors, while worries about retail trading frenzy persisted.
The Dow Jones Industrials withered 401.63 points, or 1.3%, to pause for lunch Friday at 30,201.73.
The S&P 500 dropped 47.11 points, or 1.2%, to 3,740.17, as 10 of the 11 sectors traded in the red.
The NASDAQ crumbled 138.61 points, or 1%, to 13,198.42.
All three major averages have lost at least 1% this week.
JNJ said its one-dose vaccine demonstrated 66% effectiveness overall in protecting against COVID-19. The vaccine was 72% effective in the United States, 66% in Latin America and 57% in South Africa after four weeks, the company said. The vaccine offered complete protection against COVID-related hospitalizations. Shares of JNJ dropped 3.6%.
Stocks had rallied to record highs on the hope that vaccines would be effective against COVID to allow a smooth economic reopening before the end of the year. New mutations more resilient to vaccines could upend that rosy outlook for investors.
Heightened speculative trading by retail investors also continued to unnerve the market. Shares of GameStop doubled shortly after the open after Robinhood said it would allow limited buying of the stock and other heavily shorted names after restricting access the day before.
Robinhood raised more than $1 billion from its existing investors overnight, in addition to tapping bank credit lines, to ensure it had the capital required to allow some trading again in the volatile stocks. The stock last traded up 60%.
Investors are concerned that if GameStop continues to rise in such a volatile fashion, it may ripple through the financial markets, causing losses at brokers like Robinhood and forcing hedge funds who bet against the stock to sell other securities to raise cash.
Prices for 10-Year Treasurys dropped, raising yields to 1.08% from Thursday’s 1.05%. Treasury prices and yields move in opposite directions.
Oil prices inched up seven cents to $52.41 U.S. a barrel.
Gold prices recovered $18.90 to $1,856.80 U.S. an ounce.
