Stocks in Toronto emerged at the final bell Friday significantly the worse for wear, as fears over a global economic slowdown made their presence felt on health-care and tech issues.
The TSX Composite docked 174.28 points to finish the day’s trading at 19,385.88. On the week, the index handed over 387 points, or 1.96%.
The Canadian dollar fell 0.11 cents to 75.37 cents.
Health-care issues were particularly roughed up, for instance, Canopy Growth, down 33 cents, or 7.2%, to $4.23, while Aurora Cannabis dropped 14 cents, or 6.9%, to $1.89.
Next down the list were tech stocks, with HUT 8 Mining sliding 24 cents, or 8.5%, to $2.57, while Converge Tech Solutions dipped 36 cents, or 5.8%, to $5.86.
Industrials were also hard hit, especially, Brookfield Business Partners, whose units jettisoned $2.32, or 7.6%, to $28.31, while TFI International lost $6.35, or 4.8%, to $125.95.
Pointing upward were gold stocks, primarily New Gold, shooting up five cents, or 4.7%, to $1.18, while Seabridge Gold improved 19 cents, or 1.2%, to $16.50.
In consumer staples, Empire Company jumped 50 cents, or 1.4%, to $36.44, while Loblaw piled on 73 cents to $113.52.
In communications, Corus Entertainment traveled eight cents higher, or 3.1%, to $2.65, while BCE gained 63 cents, or 1.1%, to $62.21.
On the economic front, Canada Mortgage and Housing Corporation reported housing starts of 267,309 units in August, up from 264,467 units in July.
Statistics Canada came out saying wholesale sales fell 0.6% in July, largely due to declines in the personal and household goods sub-sector.
Also, foreign investors acquired $14.8 billion of Canadian securities, while Canadian investors added $4.3 billion of foreign securities to their holdings.
Adding to the somber mood, the World Bank said the global economy might be inching toward a recession, while the International Monetary Fund said it expected a slowdown in the third quarter.
The TSX Venture Exchange let go of 6.99 points, or 1.1%, to 630.50, for a weekly loss of 15 points, or 2.33%.
All but three of the 12 TSX subgroups remained negative by day’s end, with health-care surrendering 3.3%, and information technology falling 2.7%, and industrials skidding 2.3%.
The three gainers were gold, up 1.1%, while communications and consumer staples each climbed 0.4%.
Stocks fell Friday as Wall Street headed toward a big losing week, and traders absorbed an ugly earnings warning from FedEx about the global economy.
The Dow Jones Industrials came off its lows of the day, but forfeited 139.40 points to conclude Friday and the week at 30,822.42
The S&P 500 sank 28.02 points to 3,873.33.
The NASDAQ Composite subtracted 103.95 points to 11,448.40.
Shares of FedEx plunged 21%, its worst daily drop ever, after the shipments company withdrew its full-year guidance and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as the global economy “significantly worsened.”
Transport stocks are typically seen as a leading economic indicator, so FedEx’s announcement could contribute to broader declines on Friday.
Transport stocks are typically seen as a leading economic indicator, and FedEx pointed to weakness in Asia as one of the main reasons for its negative outlook. Shares of shipping rivals UPS lost 4% and XPO Logistics dropped 7%, and Amazon’s stock fell 3%.
The three major averages were on pace to notch their fourth losing week in five as a comeback rally looks increasingly like a bear market bounce. The Dow Jones Industrial Average has declined 4.1% this week, while the S&P 500 was 5% lower. The NASDAQ is down 5.5%, headed toward its worst weekly loss since June.
The University of Michigan’s consumer sentiment index preliminary September reading came in at 59.5, just below a Dow Jones estimate of 60. That print was still slightly above August’s final reading of 58.2.
Treasury prices lost ground, raising yields back to Thursday’s 3.45%. Treasury prices and yields move in opposite direction.
Oil prices eked up 26 cents to $85.36 U.S. a barrel.
Gold prices hiked $5.80 to $1,683.10 U.S. an ounce.
Stocks Tremble on FedEx Warning