Indexes Stumble at First Friday

Techs Very Much in Focus


Techs Very Much in Focus

Equities in Canada’s largest market opened lower on Friday as concerns around the economic impact of rising coronavirus infections overcame optimism over new domestic stimulus measures.

The TSX dipped 28.31 points to begin Friday at 15,883.95.

The Canadian dollar sank 0.21 cents to 74.90 cents U.S.

The federal government on Thursday had proposed boosting a weekly payout for the unemployment that would replace emergency COVID-19 income support that ends this weekend.

ON BAYSTREET

The TSX Venture Exchange eked ahead 1.79 points to 688.10.

Seven of the 12 TSX subgroups were down in the first hour of trade, with energy going south 1.4%, while gold and materials each slid 0.9%.

The five gainers were led by information technology, up 0.9%, utilities, ahead 0.4%, and health-care, gaining 0.5%.

ON WALLSTREET

U.S. stocks were little changed on Friday as Wall Street headed for its fourth consecutive week of losses.

The Dow Jones Industrial Average plunged 167.87 points to begin the week’s last session at 26,647.57.

The S&P 500 lost 7.83 points to 3,238.57.

The NASDAQ added 24.37 points to 10,696.64.

For the week, the Dow entered Friday’s session down 3% while the S&P 500 has lost 2.2%. The NASDAQ is down 1.1% week to date. This would mark the benchmarks’ longest weekly slide since August 2019.

The major averages have had a tough month, with the S&P 500 falling more than 7% in September. The Dow has dropped 5.7% over that time period and the NASDAQ is down 9.4% month to date.

Shares of Amazon dipped 0.2% and Facebook slipped 0.9%. Cruise operators Carnival picked up 4.2%, Norwegian Cruise Line added 8.9%, and Royal Caribbean was 3.8%, after an upgrade from a Barclays analyst.

Much of September’s losses have been concentrated in mega-cap tech stocks, which carry a heavy weight in the indexes. Shares of Apple — the largest publicly traded company in the U.S. by market cap — have dropped more than 19% this month. Microsoft, Alphabet, Netflix, Amazon and Facebook are all down at least 9.9% over that time period.

House Democrats are reportedly preparing a $2.4-trillion relief package that they could vote on as soon as next week. The bill would include enhanced unemployment benefits and aid to airlines, but the overall price tag remains well above what Republican leaders have said they are willing to spend.

Prices for the 10-Year Treasury gained, driving yields down to 0.65% from Thursday’s 0.67%, Treasury prices and yields move in opposite directions.

Oil prices deducted 53 cents to $39.78 U.S. a barrel.

Gold prices dipped $18.70 to $1,858.20 U.S. an ounce.