TSX Closes out Losing Week on Downward Note

Stocks in Toronto trudged toward the finish of the second week of calendar 2021, burdened by losses in the energy and gold sector.

The TSX remained behind 49.06 points to close Friday and the week to 17,909.64. On the week, the loss amounted to 133 points, or 0.7%.

The Canadian dollar let go of 0.56 cents at 78.51 cents U.S.

Energy rested heaviest on the exchange, with PrairieSky Royalties losing 58 cents, or 5.1%, to $10.90 and MEG Energy off 26 cents, or 5.3%, to $4.64.

Gold took a licking, too, as Eldorado Gold lost 82 cents, or 5.4%, to $14.36, while Teranga Gold sifted off 58 cents, or 4.4%, to $12.56.

Among other resources, Osisko Mining deducted 22 cents, or 6.3%, to $3.25, while Fortuna Silver Mines dipped 79 cents, or 7.6%, to $9.63.

Consumer staples tried to even things out, with Alimentation Couche-Tard darting $1.80 ahead, or 5%, to $38.09, while Empire Company added 81 cents, or 2.3%, to $36.01.

In communications, Cogeco Communications leaped $5.55, or 4.8%, to $101.55, while BCE traveled 90 cents, or 1.6%, higher to $55.85.

Utilities also gave strong showing, with Canadian Utilities taking on 69 cents, or 2.2%, to $32.18, while Brookfield Infrastructure Partners popped $2.06, or 3.1%, to $68.21.

On the economic beat, the Canadian Real Estate Association reported national home sales rose 7.2% on a month-over-month basis in December.

ON BAYSTREET

The TSX Venture Exchange dipped 6.36 points to 907.99.

The 12 subgroups were evenly divided, with consumer staples up 2.2%, communications improving 1.2%, and utilities clicking 1% higher.

The half-dozen laggards were weighed most by energy, sliding 3.7%, gold, dimming 1.9%, and materials, 1.8% the worse.

ON WALLSTREET

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Stocks fell on Friday to close out a tough week as traders weighed President-elect Joe Biden’s $1.9-trillion stimulus plan along with the latest earnings from some of the biggest U.S. banks.

The Dow Jones Industrials shed 180.8 points to finish the week at 30,810.72. Dow Inc. and Chevron both fell more than 3% led the 30-stock average lower.

The S&P 500 dipped 27.29 points to 3,768.25. Energy dropped 4%, posting its worst one-day decline since late November, pressuring the S&P 500.

The NASDAQ stumbled 114.14 points to 12,998.50.

The Dow demurred 0.9% on the week, and the NASDAQ skidded 1.5%, to snap four-week winning streaks. The S&P 500 also lost 1.5% over that time period.

On Friday, investors got fresh looks at major banks such as JPMorgan Chase, Citigroup and Wells Fargo. JPMorgan reported better-than-expected earnings, but the stock fell more than 1%. Wells Fargo swooned 7.8% and Citigroup also declined 6.9%, even after posting earnings that beat analyst expectations.

Biden’s proposal, called the American Rescue Plan, includes increasing the additional federal unemployment payments to $400 per week and extending them through September, direct payments to many Americans of $1,400, and extending the federal moratoriums on evictions and foreclosures through September.

The plan also calls for $350 billion in aid to state and local governments, $70 billion for COVID testing and vaccination programs and raising the federal minimum wage to $15 per hour.

Meanwhile, the U.S. Commerce Department said retail sales fell 0.7% in December. Economists polled by Dow Jones expected sales to remain flat.

Prices for the 10-Year Treasury regained lost ground, lowering yields to 1.09% from Thursday’s 1.13%. Treasury prices and yields move in opposite directions.

Oil prices handed back $1.39 to $52.18 U.S. a barrel.

Gold prices erased $25.50 to $1,825.90 U.S. an ounce.