July 3, 2022

DS Duke

Global Business In World

TSX Sinks Heavily to End October

3 min read
Equities in Toronto faltered on the day and the week, mostly hampered by losses in...

Equities in Toronto faltered on the day and the week, mostly hampered by losses in resource stocks.

The TSX Composite dropped 160.46 points, to greet Friday’s closing bell at 21,037.07., for a decrease on the week of 179 points, or 0.84%.

The Canadian dollar slipped 0.19 cents to 80.80 cents U.S.

After snapping its seven-month winning streak in September, the Canadian equity index was on track to end October in gains helped by stronger commodities and on prospects of corporate earnings.

Eldorado Gold, down 75 cents, or 6.3%, to $11.10, led declines on the sub-sector index and was the biggest drag on the index after posting a dismal third quarter earnings. Alamos Gold docked 40 cents, or 4.2%, to $9.20.

In other resource issues, Fortuna Silver Mines let go of 28 cents, or 4.4%, to $6.07, while Canfor Corporation lost $1.08, or 4%, to $25.71.

Financials were also hit hard, as Bank of Montreal dropped $4.08., or 2.9%, to $134.49, while Brookfield Asset Management was lower by $1.56 a share, or 2%, to $74.76.

Among energy stocks, Cenovus Energy gained 25 cents, or 1.7%, to $14.85, while Birchcliff Energy obtained 13 cents, or 2%, to $6.69.

In the industrial sector, New Flyer Industries took on 72 cents, or 3%, to $25.01, while Waste Connections popped $4.79, or 2.9%, to $168.66.

In consumer discretionary stocks, Magna International was boosted $1.22, or 1.2%, to $100.95, while Martinrea International gained eight cents to $11.57.

On the economic front, Statistics Canada reported real gross domestic product grew 0.4% in August, led by continued growth in services-producing industries.

The agency’s industrial product price index increased 1.0% month over month in September and 14.9% compared with the same month in 2020.

Its Raw Materials Price Index increased 2.5% on a monthly basis in September and 31.9% compared with September 2020.

ON BAYSTREET

The TSX Venture Exchange slid 4.78 points to 950.43, losing 8.4 points on the week, or 0.88%

All but three of the 12 TSX subgroups were lower on the day, as gold shed 2.2%, materials were down 1.3%, and financials skidded 1.2%.

The three gainers were energy and industrials, in a dead heat for the lead, gaining 0.4% each, while consumer discretionary stocks climbing 0.2%.

ON WALLSTREET

The U.S. stock market set another round of record highs on Friday as Wall Street looked past disappointing results from major companies to wrap up its best month of the year.

The Dow Jones Industrials finished in the green 89.08 points to 35,819.56

The S&P 500 gained 8.96 points to 4,605.38

The NASDAQ Composite forged ahead 50.27 points to 15.498.39.

All three closed at record highs, and the S&P 500 and NASDAQ clinched their best months since November 2020.

Amazon shares dropped more than 2% after the e-commerce giant badly missed earnings and revenue expectations for the third quarter.

Apple stock fell 1.8% after the tech giant’s quarterly revenue fell short of expectations amid larger-than-expected supply constraints on iPhones, iPads and Macs. It was the first time Apple’s revenues have missed Wall Street estimates since May 2017.

However, Microsoft rose more than 2% to surpass Apple as largest listed company in the world by market cap. Nike and Intel also had solid days to boost the Dow.

Shares of Exxon Mobil and Chevron rose on Friday after the energy giants topped earnings expectations. Starbucks, however, was under pressure after revenue from China missed expectations.

All three major averages posted their fourth positive week in a row and finished solidly higher for the month. The NASDAQ gained more than 7% for October, while the S&P 500 gained 6.9%. The Dow rose 5.8% for its best month since March.

Despite the recent disappointing results from Big Tech, the stock market has been raking in records amid solid earnings. About half of the S&P 500 have reported quarterly results and more than 80% of them beat earnings estimates from Wall Street analysts. S&P 500 companies are expected to grow profit by 38.6% year over year.

All three major averages are on track to post a winning week, their fourth positive week in a row. Month to date, the S&P 500 is up 6.7%, on pace for its best monthly performance since November 2020. The blue-chip Dow has gained 5.6% in October, while the NASDAQ has rallied 6.9%.

Prices for 10-year Treasurys were higher, thus lowering yields to 1.56% from Thursday’s 1.57%. Treasury prices and yields move in opposite directions.

Oil prices gained 55 cents to $83.36 U.S. a barrel.

Gold prices reversed $17.80 to $1,784.80 U.S. an ounce.

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