TSX Flat on Day, Hikes on Week
5 min readEquities in Canada’s largest market changed very little Friday, but cemented weekly gains, due to strong performances from energy and industrial stocks
The TSX Composite fought its way to a gain of 3.76 points to finish the day and the week at 21,216.15. Over the last five sessions, the index was ahead 288 points, or 1.38{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.
The Canadian dollar added 0.04 cents to 80.87 cents U.S.
Energy led the festivities, with MEG Energy soaring 38 cents, or 3.4{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $11.61, while Arc Resources skyrocketed 23 cents, or 2{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $11.52.
In industrials, Bombardier gathered eight cents, or 3.9{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $2.15, while TFI International climbed $3.55, or 2.5{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $146.48.
In the financial sector, GoEasy jumped $3.33, or 1.7{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $197.94, while gained $1.10, or 2.2{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $50.30.
In health-care, Canopy Growth shares dumped 85 cents, or 4.9{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $16.52, while Organigram Holdings shed 13 cents, or 4.3{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $2.99.
Tech shares got bruised also, as HUT 8 Mining dropped 73 cents, or 5.1{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $13.72, while Shopify unloaded $92.75, or 5{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $1,757.83.
In consumer discretionary stocks, Sleep Country Holdings dozed $1.22, or 3.3{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $35.40, while Magna International lost $3.58, or 3.5{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to $99.26.
On the economic calendar, Statistics Canada reported retail sales were up 2.1{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} to $57.2 billion in August. The agency went on to say sales increased in nine out of 11 sub-sectors, led by higher sales at food and beverage stores, gasoline stations, and clothing and clothing accessories stores
ON BAYSTREET
The TSX Venture Exchange strengthened 3.45 points to 948.84, for a gain on the week of 11 points, or 1.19{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.
Eight of the 12 TSX subgroups remained positive on the day, with gold brighter 0.8{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, materials stronger by 1.8{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, and energy rumbling 1.3{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} higher.
The four laggards were weighed most by health-care falling 2.9{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, information technology, down 2.3{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, while consumer discretionary dropped 1.1{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.
ON WALLSTREET
The S&P 500 edged lower a day after the benchmark closed at a record.
The Dow Jones Industrials recovered from several hours in negative territory to gain 73.94 points to 35,677.02, helped by a 4{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} rise in shares of American Express, which reported strong quarterly earnings Thursday. The ascent on the week was 382 points, or 1.1{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.
The S&P 500 lost 4.88 points on the day to 4,544.20, still strengthening 73 points, or 1.6{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, on the week.
The NASDAQ Composite fell 125.5 points to 15.090.20, after poor results from two technology companies. Still, the rise on the week was 193 points, or 1.3{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.
Shares of Intel retreated more than 11{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} following a weaker-than-expected sales report. The semiconductor company blamed an industry-wide chip shortage for its revenue miss.
Social media stocks also dropped after Snap said its advertising business declined due to Apple’s privacy changes. Snap shares sunk more than 25{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}. Facebook lost 6{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} and Twitter pulled back 4{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.
However, several tech stocks rose to all-time highs. Tesla shares extended their rally, rising 1{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} after hitting a new intraday high earlier in the morning. The stock closed 3{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} higher Thursday after posting record profit and revenue, along with strong margins. Netflix, Ebay and
Microsoft also climbed to new all-time highs.
Despite the blips in the tech sector, overall earnings season has been terrific so far, boosting the broader market back to an all-time high following a two-month lull. So far for the third quarter earnings season, 84{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} of the 117 companies that have reported have beat analysts’ earnings estimates. Profits are reportedly on pace in the quarter to increase 34.8{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}.
Prices for 10-year Treasurys regained ground, lowering yields to 1.64{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} from Thursday’s 1.69{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}. Treasury prices and yields move in opposite directions.
Oil prices gained $1.59 to $84.09 U.S. a barrel.
Gold prices gained $13.20 to $1,795.10 U.S. an ounce.
