Baystreet.ca - Canada's main stock index fell after weak earnings from consumer discretionary firms Magna and MTY Food on Friday, while investors took some profits after strong gains in the previous session.
The TSX Composite Index lost 97.08 points midday Friday at 25,601.43. The index is still ahead, however, by 158 points, or 0.6% on the week.
The Canadian dollar eked higher 0.13 cents to 70.60 cents U.S.
In corporate news, pipeline operator TC Energy (TSX:TRP) beat estimates for fourth-quarter profit on Friday. TC shares lost $1.62, or 2.4%, to $65.58.
On the TSX, consumer discretionary sector led the declines, as MTY Food Group (TSX:MTY) lost $4.58, or 9.2%, to $45.46 after the restaurant chain reported fourth-quarter revenue below estimates.
Another consumer discretionary share, Magna International (TSX:MG), fell $2.14, or 3.8%, to $54.12, after the Canadian auto parts maker cut its 2026 sales estimate and offered a weak revenue forecast for the current year.
The materials group also lost, dragged by a 10% fall of $2.43, or 12.8%, in miner Seabridge Gold (TSX:SEA), to $16.51, after the company announced a $100 million financing.On the economic front, motor vehicle sales are on investors’ radar screens. That figure declined to 135,500 in December from 161,500 in November. As well, wholesale sales fell 0.2% to $83.6 billion in December.
Manufacturing sales rose 0.3% in December, driven primarily by higher sales of petroleum and coal as well as food products.
Markets on both sides of the border are closed Monday, for Family Day in Canada, for Presidents Day in the States.
ON BAYSTREET The TSX Venture Exchange faded 2.56 points to 645.36. On the week, however, the index has garnered six points, or nearly 1%.
The 12 subgroups were split halfway, with gold sliding 2.2%, consumer discretionary stocks down 1.8%, and materials sinking 1.7%.
The half-dozen gainers were buoyed by real-estate and utilities, each up 0.6%, while financials were richer 0.5%.
ON WALLSTREET
Stocks were little changed on Friday in a pause from a strong performance this week, as investors weighed the latest on the global trade and inflation fronts.
The Dow Jones Industrials backed off 95.99 points to break for lunch Friday at 44,615.44
The S&P 500 index gained two points to 6,117.07
The tech-heavy NASDAQ added 25.42 points to 19,971.07.
Traders also shrugged off data released Friday that reflected a 0.9% slump in retail sales for January, worse than the Dow Jones estimate for a 0.2% decline.
This week, the S&P 500 is headed to accumulate 1.5% and the Dow is on pace for a gain of 0.9%. The NASDAQ is 2.3% higher this week.
On Thursday, President Donald Trump signed a memorandum on laying out a plan to impose levies on goods from countries with duties on U.S. products. The lack of immediate tariffs boosted sentiment, which saw equity markets move higher as investors also piled into technology stocks.
While markets managed to end the previous trading session higher one expert expresses the opinion that this relief and positive momentum over a pause in reciprocal tariffs may be short-lived.
Sentiment appeared to calm after January’s producer price index, as well as the consumer price index report released earlier this week, suggested a softer reading for the personal consumption expenditures price index. The PCE price index, which is due later this month, is the Federal Reserve’s preferred inflation gauge.
Prices for the 10-year Treasury won new life, lowering yields to 4.45% from Thursday’s 4.53%. Treasury prices and yields move in opposite directions.
Oil prices dropped 52 cents to $70.77 U.S. a barrel.
Prices for gold subsided $38.70 an ounce to $2,907.10 U.S.