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Stocks Roughed up to End Week

Baystreet.ca
·3 min read

It was an ugly end to an ugly week for equities on both sides of the border in North America, as energy stocks took a hit and investors foresaw higher interest rates starting next week.

The S&P/TSX Composite fell sharply by Friday’s closing bell, 436.79 points, or 2.1%, to 20,621.39, for a loss on the week of 736 points, or 3.45%.

The Canadian dollar slumped 0.49 cents at 79.50 cents U.S.

Energy stocks wore the largest collars, with Birchcliff Energy sliding 41 cents, or 6.7%, to $5.68, while Vermilion Energy weakened a dollar, or 5.3%, to $18.02.

Tech issues took a wallop, too, as Shopify was bruised $169.58, or 13.2%, to $1,112.61, HUT 8 Mining was stricken 96 cents, or 12.3%, to $6.82.

In resource stocks, Turquoise Hill retreated $1.80, or 8.5%, to $19.49, while MAG Silver doffed $1.43, or 7%, to $19.07.

On the economic calendar, Statistics Canada reported retail sales gained 0.7% to $58.1 billion in November. The increase was led by higher sales at gasoline stations, building material and garden equipment and supplies dealers and food and beverage stores.

The agency’s new housing price index grew 0.2% its slowest pace since June 2020. Nationally, new home prices rose 11.6% year over year in December.

Elsewhere, Alberta Premier Jason Kenney on Thursday called on the federal government to pause a COVID-19 vaccine mandate for cross-border truckers that companies say will disrupt the supply chain and fuel inflation.

ON BAYSTREET

The TSX Venture Exchange cratered 33.73 points, or 3.8%, Friday to 872.18, for a weekly bleeding of 46 points, or 5.12%.

All 12 TSX subgroups were lower, with energy plummeting 3.8%, information technology descending 3.4%, and materials down 2.6%.

ON WALLSTREET

The NASDAQ Composite dropped on Friday, notching its worst week since 2020, as sharp losses in streaming giant Netflix dragged the technology-focused index deeper into correction territory.

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The Dow Jones Industrials swooned 450.02 points, or 1.3%, to 34,245.37, a loss on a holiday-shortened week of 1,646 points, or 4.86%. Markets were closed Monday for Martin Luther King Day.

The S&P 500 sank 84.79 points, or 1.9%, to 4,397.94, for a weekly loss of 265 points, or 5.68%. Both the Dow and S&P 500 are on track for a third straight week of losses, their worst weeks since 2020.

The NASDAQ crumpled 389.10 points, or 2.7% Friday to 14,039.86, for a weekly loss of 1,125 points, or 7.55%.

The NASDAQ is off to its worst start to the year, through the first 14 trading days, since 2008.

Both the Dow and S&P 500 are on track for a third straight week of losses.

Netflix’s disappointing quarterly report is the latest setback for technology investors. Shares of the streaming giant tumbled 21.8% on Friday after the company’s fourth-quarter earnings report showed a slowdown in subscriber growth. Its competitors’ shares also declined, with Dow component Disney, which operates the Disney+ streaming service, off 6.9%.

Netflix is the first major tech stock to report earnings this season, with Apple and Tesla slated to post earnings next week. Tesla lost 5.3% on Friday. Other tech names like Amazon dropped 6%, and Meta Platforms fell 4.2%.

Meanwhile, Peloton shares rebounded 11.7% on Friday. The maker of interactive fitness bicycles and treadmills plunged 23.9% during regular trading on Thursday after reports that the company is temporarily halting production of its fitness products.

Prices for 10-year Treasurys leaped, lowering yields to 1.76% from Thursday’s 1.82%. Treasury prices and yields move in opposite directions.

Oil prices ditched 67 cents to $84.88 U.S. a barrel.

Gold prices retreated $9.20 to $1,833.40 U.S. an ounce.