October 19, 2021

TSX Gains Take some of the Sting out of Weekly Losses

5 min read
Equities in Canada’s largest sector got bruised on the week, but Friday’s gains eased some...

Equities in Canada’s largest sector got bruised on the week, but Friday’s gains eased some of the blow, as energy and gold stocks staged impressive rallies.

The TSX rumbled ahead 229.48 points, or 1.2{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to close Friday at 19,365.29. However, the index fell short on the week by 107 points, or 0.55{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}

The Canadian dollar gained 0.37 cents at 82.54 cents U.S.

Energy stocks were the big winners on the day, with MEG Energy towering 53 cents, or 7.8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to $7.29, while Vermilion Energy gained 37 cents, or 4.1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to $9.36.

Among gold plays, Kinross Gold hiked 28 cents, or 3.1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to $9.41, while Seabridge Gold tacked on 73 cents, or 3.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to $21.91.

In health-care Aurinia Pharmaceuticals rose $1.07, or 8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to $14.42, while Canopy Growth added 85 cents, or 3.2{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to $27.76.

On the economic platform, manufacturing sales bounced back in March, rising 3.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} to $57.8 billion, following a 1.1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} decline in February. Gains were widespread across all major industries.

Sales by Canadian wholesalers rose 2.8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} in March, the second increase in three months. The growth in March was due to increases in the building material and supplies sub-sector and the miscellaneous sub-sector.

ON BAYSTREET

The TSX Venture Exchange zoomed 22.61 points, or 2.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to end Friday at 930.96, minimizing the loss on the week to 19 points, or 2{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

All 12 subgroups were positive on the day, with energy stocks gushing 2.8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, gold shining 2.3{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} brighter, and health-care stronger 2.1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

ON WALLSTREET

U.S. stocks jumped on Friday, rebounding for a second day led by technology shares and reopening trades after Wall Street started the week with big losses.

The Dow Jones Industrials soared 360.62 points, or 1.1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to 34,382.07.

The S&P 500 gained 61.36 points, or 1.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to 4,173.86.

The NASDAQ jumped 304.99 points, or 2.3{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, to 13,429.98.

The major averages experienced a roller-coaster week that saw the blue-chip Dow drop nearly 1,200 points from Monday to Wednesday. The S&P 500 lost 4{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, and the NASDAQ fell 5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} during that period.

The indexes have since rebounded from the steep selloff, but they still posted modest losses for the week as inflation fears hit sentiment.

The Dow and the S&P 500 fell more than 1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} each this week, while tech stocks got hit especially hard, pulling the NASDAQ down over 2.3{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} for the week.

Tech stocks were the biggest outperformers Friday. Tesla gained more than 3{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}. Facebook jumped 3.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, while Alphabet and Microsoft rose more than 2{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}. Apple, Amazon and Netflix also all climbed over 1{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

Disney shares were bucking the trend, falling 4.5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} after posting weaker-than-expected revenue and streaming subscribers.

United Airlines and American Airlines both climbed more than 5{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}. Carnival and Norwegian Cruise Line shares both popped more than 8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}, while Royal Caribbean advanced more than 7{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}.

Stocks most exposed to the ongoing recovery jumped again Friday after the Centers for Disease Control and Prevention eased guidelines saying that in most settings fully vaccinated people don’t need to wear masks indoors or outdoors.

Stocks advanced on Friday even after data showed consumer purchases slowed down last month. Advance retail sales were flat for April, the Commerce Department reported Friday. That compared to the Dow Jones estimate of a 0.8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} gain and a 9.8{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} surge in March.

Prices for 10-Year Treasurys moved higher, thus lowering yields to 1.63{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} from Thursday’s 1.66{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d}. Treasury prices and yields move in opposite directions.

Oil prices regained $1.53 to $65.35 U.S. a barrel.

Gold prices gained $19.50 to $1,843.50 U.S. an ounce.

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