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TSX Stumbles Home

Published 2024-09-06, 12:24 p/m
© Reuters.  TSX Stumbles Home
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Baystreet.ca - Equities ended a rough week suffering the effects of a selloff, with investors shaking off employment numbers from both sides of the border.

The TSX Composite Index descended 270.67 points, or 1.2%, Friday to 22,717.61. On the week, the index was lower by 564 points, or 2.4%.

The Canadian dollar pointed downward 0.04 cents at 73.73. cents U.S.

In corporate news, Japanese retail giant Seven & i Holdings rejected Canada's convenience store operator Alimentation Couche-Tard's $38.5 billion cash bid. Couche-Tard stock rose $1.50, or 2%, to $76.91. Elsewhere in consumer staples, North West Company (TSX:NWC) gained $1.89, or 3.9%, to $50.89.

The communications sector was supported by a seven-cent rise in Quebecor (TSX:QBRa) to $33.69. TELUS (TSX:TIXT) latched onto 13 cents to $22.84.

Among individual stocks, Enghouse Systems (TSX:ENGH) stormed higher $1.74, or 6%, to $30.94 after the software and services company posted better-than-expected third-quarter results.

Gold, however, did not fare so well, as Centerra Gold (TSX:CG) shed 41 cents, or 4.5%, to $8.66, while Torex Gold (TSX:TXG) dropped $1.03, or 4.1%, to $23.85. In materials, Hudbay Minerals (TSX:HBM) let go of 53 cents, or 5.4%, to $9.23, while First Majestic Silver (TSX:AG) dipped 32 cents, or 4.9%, to $6.24.

In tech stocks, Bitfarms dropped 16 cents, or 6.2%, to $2.44, while Celestica (TSX:CLS) shares shook off $6.49, or 10.5%, to $55.51.

Statistics Canada informed investors Friday that employment was little changed in August (+22,000; +0.1%) while the employment rate decreased 0.1 percentage points to 60.8%. The unemployment rate rose 0.2 percentage points to 6.6%.

Moreover, the IVEY PMI registered at 48.2 in August, much lower than the 57.6 figure the month before and well below the 53.5 in August 2023.

ON BAYSTREET

The TSX Venture Exchange fell back 5.06 points to 545.22, for a bruising on the week of 22 points, or 4%.

All but one of the 12 TSX subgroups were on the minus side, with information technology plummeting 2.8%, while materials and gold flopped 2% each.

Only communications held out against the negative tide, eking up 0.1%.

ON WALLSTREET

The S&P 500 dropped Friday, and tracked its worst week since March 2023, as investors assessed the fallout from a weak August jobs report and ditched leading technology stocks.

The Dow Jones Industrial index cratered 410.34 points, or 1%, to conclude Friday at 40,345.41.

The much-broader index reversed 94.99 points, or 1.7%, to 5,408.42.

The NASDAQ got slammed 436,83 points, or 2.6%, to 16,690.83.

Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) slumped about 4% each, while Meta (NASDAQ:META) Platforms lost more than 3%. Broadcom (NASDAQ:AVGO) shed 10% on lackluster current-quarter guidance. Other semiconductors fell in sympathy, with Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) dropping about 4% each.

Fresh August jobs data showed further signs of a slowing labour market as growth fears mount on Wall Street. Nonfarm payrolls grew by 142,000, versus a 161,000 gain expected by economists polled by Dow Jones. However, the unemployment rate edged down to 4.2%, in line with expectations.

Friday’s moved closed out a rocky week for equity markets. The S&P 500 registered a 4.3% decline and its worst week since March 2023.

The NASDAQ shed 5.8% for its worst week since 2022, while 30-stock Dow has slumped 2.9%.

Prices for the 10-year Treasury gained ground, lowering yields to 3.72% from Thursday’s 3.73%. Treasury prices and yields move in opposite directions.

Oil prices faded 96 cents to $68.19 U.S. a barrel.

Gold prices dropped $18.10 to $2,525.

This content was originally published on Baystreet.ca

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