Stock indexes in Canada’s largest centre fell on Friday, led by declines in energy and material shares after data showed domestic factory sales fell for a fourth straight month, with investors also digesting the Russian president’s comments on no plans for further military mobilization.
The TSX Composite faltered 122.26 points to break for noon hour EDT at 18,491.37.
The Canadian dollar weakened 0.6 cents to 72.07 cents U.S.
The TSX has lost 12.9% so far this year after the Russia-Ukraine war spiraled commodity prices across the globe
Resource stocks took it on the chin Friday, with Hudbay Minerals descending 32 cents, or 5.8%, to $5.24, while Endeavour Silver gave back 21 cents, or 4.6%, to $4.34.
In gold stocks, Eldorado Gold lost 41 cents, or 4.8%, to $8.13, while OceanaGold handed back 11 cents, or 5%, to $2.11.
Techs tried to right the ship, as Shopify moved ahead 32 cents to $36.43, while Sierra Wireless added 36 cents to $42.48.
Friday’s macroeconomic slate was a busy one, with August wholesale trade up 1.4%, while manufacturing sales declined 2.0%, mainly on lower sales of petroleum and coal, chemical and primary metal products industries.
The Canadian Real Estate Association reported national home sales were down 3.9% on a month-over-month basis in September. Actual (not seasonally-adjusted) monthly activity came in 32.2% below September 2021.
The TSX Venture Exchange dipped 2.94 points to 583.45.
All but three of the 12 TSX subgroups sank, as materials declined 3.2%, gold, duller in price by 2.9%, and energy, off 1.7%.
The three gainers were information technology, progressing 0.5%, financials, better by 0.3%, and consumer staples, up 0.2%.
Stocks slumped Friday, giving up gains from earlier in the session a day after posting a historic turnaround rally as investors digested inflation expectations.
The Dow Jones Industrials capsized 299.35 points, or 1%, to 29,739.37
The S&P 500 fell back 69.42 points, or 1.9%, to 3,600.49
The NASDAQ Composite stumbled 257.78 points, or 2.4%, to 10,391.37.
Stocks fell to session lows after a consumer survey from the University of Michigan showed inflation expectations were increasing, sentiment that the Federal Reserve is likely watching closely.
Earlier in the session, bank stocks gained, leading the broader market, after four key earnings reports. Wells Fargo gained more than 2% after beating Wall Street’s revenue expectations. JPMorgan jumped more than 1%, and Citigroup rose more than 2%.
The positive moves come amid a negative outlook for the earnings season. Profit for S&P 500 companies increased a measly 2.4% in the third quarter, according to the latest analyst estimates. That’s the worst growth since the third quarter of 2020, the heart of the pandemic.
Treasury prices fell a bit, raising yields to 4.01% from Thursday’s 3.96%. Treasury prices and yields move in opposite directions.
Oil prices stumbled $2.99 to $86.12 U.S. a barrel.
Gold prices let go of $24.50 to $1,652.50 U.S. an ounce.