TORONTO — Canada's main stock index closed lower on the day and the week Friday, while U.S. stock markets ended with mixed results despite widespread gains early in the day.
The S&P/TSX composite index closed down 87.88 points at 24,463.67, weighed down by financials and telecoms, to end down 358.87 points from a week earlier.
In New York, the Dow Jones industrial average closed down 259.96 points at 42,114.40. The S&P 500 index was down 1.74 points at 5,808.12, while the Nasdaq composite was up 103.12 points at 18,518.61.
U.S. markets got a boost early in the day from more indications of an overall strong economy as a consumer sentiment survey rose to a six-month high. However, disappointing results out of New York Community Bank put pressure on financials, said Candice Bangsund, vice-president and portfolio manager with Fiera Capital.
"A weaker outlook drove an eight per cent decline in that stock specifically, and drove the financial sector lower," said Bangsund.
"So that's sort of why the S&P 500 has come back down versus earlier in the day."
The dip in financials also put pressure on the sector in Canada, with the S&P/TSX financials index down 0.5 per cent.
Telecoms were also under pressure with the index down 0.7 per cent as Rogers Communications Inc. shares fell for a second day after releasing quarterly results.
Energy stocks however saw gains with the index up 1.4 per cent as the price of crude rose.
Oil prices have been swinging up and down over tensions in the Middle East, but the more optimistic outlook on the U.S. economy likely helped push crude higher Friday, said Bangsund.
"That stronger-than-expected economic data in the U.S. has boosted the outlook for demand for crude and that's helped to support prices."
The Canadian dollar traded for 72.09 cents US compared with 72.23 cents US on Thursday.
The loonie has been under pressure as the Bank of Canada is expected to keep lowering interest rates, while the rate trajectory is much less clear in the U.S. Much of that divergence has been priced in, said Bangsund, but there's still uncertainty
"The resilience of the U.S. economy has brought into question whether the Fed can indeed reduce interest rates by as much as the market is expecting," she said.
The December crude oil contract closed up US$1.59 at US$71.78 per barrel and the December natural gas contract was up seven cents at US$3.09 per mmBTU.
The December gold contract was up US$5.70 at US$2,754.60 an ounce and the December copper contract was up two cents at US$4.37 a pound.
This report by The Canadian Press was first published Oct. 25, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press
