May 9, 2021

Business Information

Futures Fall After Week-Long Rally

2 min read
Futures for Canada’s main stock index fell on Friday, weighed by weakness in oil prices...

Futures for Canada’s main stock index fell on Friday, weighed by weakness in oil prices as Europe’s second coronavirus lockdown led to concerns about fuel demand, while investors eye jobs report due before the market open.

The TSX leaped 299.43 points, or 1.9%, to conclude Thursday at 16,298.17.

The Canadian dollar eked up 0.05 cents Friday at 76.49 cents U.S.

December futures sank 0.2% Friday.

Magna International posted a better-than-expected quarterly profit on Friday, as its key customers ramped up production to meet recovering demand for new cars in Europe, China and the United States.

Telus said on Friday it will buy data service provider Lionbridge AI in a $1.2-billion deal.

Canaccord Genuity raised the price target on Canadian Tire to $160.00 from $145.00

RBC raises target price on Norbord to $60.00 from $57.00

Canaccord Genuity cut the target price on Stantec to $49.00 from $51.00

In the economic docket, Statistics Canada reported the economy created 84,000 jobs in October, but keeping the unemployment rate intact at 8.9%, pretty much same as September.

Later this morning, Western University’s IVEY School of Business puts out its Purchasing Managers Index for October.

ON BAYSTREET

The TSX Venture Exchange spiked 31.12 points, or 4.5%, Thursday to 727.43.

ON WALLSTREET

U.S. stock futures sank early Friday as Wall Street eyed its best week since April even as the results of the presidential election remained unclear.

Futures for the Dow Jones Industrials staggered 226 points, or 0.8%, to 28.071.

Futures for the S&P 500 docked 33.5 points, or 1%, at 3,471.25.

Futures for the NASDAQ Composite slumped 136.25 points, or 1.1%, to 11,940.25.

Wall Street was coming off its fourth-straight positive session on Thursday and the major averages were on track for their best week since April 9. The S&P 500 and the Dow are up 7% so far this week. The tech-heavy NASDAQ Composite has led the way with a nearly 9% gain.

The sharp rally follows a slump in the prior week.

The surge in stocks has come despite lingering uncertainty about the outcome of Tuesday’s election. Democratic nominee Joe Biden leads with 253 electoral votes, according to media projections, while President Donald Trump has 214.

Votes are still being counted in several key states including Nevada, Arizona, Pennsylvania and Georgia. Some media outlets say Biden has taken a slight lead in Georgia while Trump’s advantage in Pennsylvania has become narrower.

On the economic front, Friday will bring a fresh look at the labour market for investors, with the U.S. Labor Department’s October jobs report scheduled to be released before the bell. The report comes on the heels of disappointing readings for ADP private payrolls and initial jobless claims.

Overseas, in Japan, the Nikkei 225 index gained 0.9%, while in Hong Kong, the Hang Seng index eked up 0.1%.

Oil prices staggered $1.16 to $37.63 U.S. a barrel.

Gold prices gained $7.30 to $1,929.60.

Source link