Stocks End Bad Week in Bad Way

By Baystreet Stock Market Update

Cannabis Companies Worst Off on TSX

Canada’s main stock index dipped on Friday, following in the wake of global stocks as fears about corporate profits, global trade and economic growth set in.

The S&P/TSX Composite Index slid 35.82 points to close Friday and the week at 14,888.26

The Canadian dollar shed 0.08 cents to 76.43 centsU.S.

Health-care issues were among the biggest decliners on Friday, as Aphria slumped 88 cents, or 5.4%, to $15.34, while fellow cannabis concern Canopy Growth docked 94 cents, or 1.8%, to $50.59.

In the communications field, BCE Inc. doffed 92 cents, or 1.8%, to $51.52, Shaw Communications ditched 33 cents, or 1.4%, to 24.09.

Among consumer staples, Restaurant Brands International dived $1.06, or 1.4%, to $72.56, while Maple Leaf Foods tumbled $1.10, or 3.6%, to $29.73.

New Gold rose half a cent to $1.05, while rival Goldcorp rocketed 47 cents, or 4.2%, to $11.56.

In the materials sector, First Quantum Minerals picked up 77 cents, or 7%, to $11.70

Energy stocks made their way slowly upward, as Canadian Natural Resources improved 40 cents, or 1.1%, to $36.94, while Suncor gathered 49 cents, or 1.1%, to $44.47.

ON BAYSTREET

The TSX Venture Exchange lost 3.04 points to 643.58

Eight of the 12 subgroups were lower, with health-care skidding 2.3%, while communications submered 1.5%, and consumer staples demurred 1.2%.

The four gainers were led by gold, up 1.2%, materials, up 1.1%, energy, up 0.3%.

ON WALLSTREET

Stocks fell sharply on Friday as investors slogged through another volatile session on Wall Street.

The Dow Jones Industrials plunged 296.24 points, or 1.2%, to 24,688.31

The S&P 500 fell 46.88 points, or 1.7%, to 2,658.69, and briefly entered into correction territory, trading more than 10 percent below its 52-week high. Market watchers say the average stock market correction, since WWII, results in a 13% drop and lasts for four months if it does

not turn into a full-fledged bear market.

Seven of the 11 S&P 500 sectors are down at least 10% from their 52-week highs, including energy, materials and financials. Around three quarters of the index’s stocks are also in a correction.

The NASDAQ plummeted 151.12 points, or 2.1%, to 7,167.21

The major averages posted big losses for the week. The S&P 500 shrank 3.9%, and the Dow dropped 3% this week. The NASDAQ pulled back 3.8%.

These losses add to a sharp drop seen throughout this month. For October, the Dow is off 6.7%, and S&P 500 is down 8.8%. The NASDAQ, meanwhile, has lost 10.9%. The Dow is now on pace for its biggest one-month decline since May 2010, and the S&P 500 is tracking for its biggest monthly loss since February 2009. The NASDAQ is set for its largest one-month pullback since October 2008.

Among the driving forces for the market’s sharp drop on Friday were disappointing earnings from key tech companies that overshadowed strong economic data.

Amazon fell 7.8% after the company released its latest quarterly results on Thursday. Alphabet shares, meanwhile, dropped as much as 5.6% before closing 1.8% lower. Earnings for both companies topped analyst estimates, but revenues fell short.

The Commerce Department reported the U.S. economy grew at a 3.5% rate in the third quarter, above a 3.4% estimate. The government also said its personal consumption expenditures (PCE) index, a key measure of inflation, increased by 1.6% last quarter.

Stock have suffered in recent weeks as fears of rising inflation — and rising interest rates — trim corporate profit expectations. Since the PCE index is the Federal Reserve’s preferred inflation gauge, any sign that the measure may be slowing could stall the central bank in its plan to continue to raise the overnight rate.

Consumer spending, which account for more than two-thirds of economic activity, surged by 4% in the third quarter, the fastest pace since the fourth quarter of 2014.

Prices for the benchmark for the 10-year U.S.Treasury hiked, lowering yields to 3.08% from Thursday’s 3.13%. Treasury prices and yields move in opposite directions.

Oil prices recovered 37 cents at $67.74U.S. a barrel.

Gold prices changed course and lost $3.80 an ounce to $1,236.20

This article provided by NewsEdge.