American Market News


Indexes Slip Badly from All-Time Highs


Bombardier, Aphria Punished

Feb 21 2020 04:27 pm EST


Stocks in Toronto got pushed from record highs to end the week, dragged by energy stocks, as a rise in coronavirus cases globally brought crude prices under pressure.

The TSX Composite Index slumped 100.53 points from Thursday''s all-time high to end Friday at 17,843.53.

The Canadian dollar recovered 0.24 cents to 75.65 cents U.S.

Energy concerns took the majority of the bruising, with Enerflex Ltd., dropping $1.43, or 14.4%, to $8.50, while Pason Systems gave back a dollar, or 7.3%, to $12.79.

Industrials also took a beating, with Bombardier skidding 14 cents, or 10%, to $1.26, while Westshore Terminals Investment plummeted 85 cents, or 5.3%, to $15.19.

Health-care also fell into the “sick” column, with Aphria slipping 18 cents, or 3.2%, to $5.48, while Cronos Group shed 27 cents, or 2.8%, to $9.45.

Gold was the champion among the gainers. The largest percentage gainer on the TSX was Eldorado Gold which jumped $2.83, or 28.3%, to $12.86, after reporting quarterly profits in-line with expectations and forecasting a rise in annual production for subsequent years.

Elsewhere in the gold sector, IAMGOLD shot higher 28 cents, or 7.2%, to $4.16.

Materials did their best to raise investors'' spirits, too as MAG Silver took on a dollar, or 7.1%, to $15.13, while Lundin Mining increased 35 cents, or 4.9%, to $7.51.

Among consumer discretionary issues, Jamieson Wellness exhibited just that, growing 54 cents in price, or 2%, to $27.23, while Metro acquired 42 cents to $55.47.

Altus Group rose $4.17, or 9.4%, to $48.61, after at least five brokerages raised price target on the stock after it reported fourth-quarter earnings.

Teck Resources fell $2.15, or 12.6%, the most on the TSX, to $14.94, as its quarterly profit plunged 76%. The second-biggest decliner was Hudbay Minerals, down 53 cents, or 12.2%, to $3.78, after reporting a quarterly loss.

On the economic beat, Statistics Canada said retail sales pretty much stayed put at $51.6 billion in December, after growing 1.1% in November.

The agency went on to say higher sales at building material and garden equipment and supplies dealers, as well as food and beverage stores were more than offset by lower sales at motor vehicle and parts dealers and gasoline stations.

ON BAYSTREET

The TSX Venture Exchange eked forward 1.37 points to 582.55

Eight of the 12 TSX subgroups were lower to conclude a short week with energy demurring 1.8%, industrials and health-care each bowing 1.2%.

The four gainers were led by gold, shining 3.3% brighter, while materials poked higher 0.7%, and consumer staples forged higher but 0.02%.

ON WALLSTREET

Stocks fell sharply on Friday after the number of new coronavirus cases escalated, fueling worries over a pronounced global economic slowdown.

The Dow Jones Industrials tumbled 227.57 points, to end the day and the week at 28,992.41, its first close below 29,000 since Feb. 4.

The S&P 500 slouched 35.84 points, or 1.1%, to 3,337.75, its biggest one-day loss since Jan. 31

The NASDAQ wilted 174.38 points, or 1.8%, to 9,576.59, the tech-heavy index suffering its worst session since Jan. 27.

Friday''s losses put the major averages on pace for their first weekly losses in three weeks. The NASDAQ was down 1.6% this week. The Dow gave back 1.4% and the S&P 500 lost nearly 1.3% for the week.

Microsoft fell more than 3% to lead the Dow lower on Friday. The S&P 500 was pressured by a 2.3% drop in the tech sector. Facebook, Amazon, Netflix, Google-parent Alphabet and Apple all closed at least 1.5% lower to drag down the NASDAQ lower. In turn, money poured into U.S. bonds, pushing the 30-year rate to an all-time low.

China''s National Health Commission reported more than 75,000 confirmed cases and over 2,000 deaths on the mainland. More than 800 new cases were reported in China overnight. South Korea reported 52 new cases on Thursday to take its total to 150.

IHS Markit also said activity in the U.S. services sector hit its lowest level in more than six years, noting confidence was “subdued” to the coronavirus.

Prices for the 10-Year U.S. Treasury gained sharply, lowering yields to 1.47% from Thursday''s 1.52%. Treasury prices and yields move in opposite directions.

Oil prices dropped 54 cents to $53.34 U.S. a barrel.

Gold prices hiked $25.30 to $1,645.80 U.S. an ounce.