North American stock markets close lower; gold falls back after hitting US$1,900

North American stock markets close lower; gold falls back after hitting US$1,900

TORONTO — North American stock markets closed the week with a down day on Friday despite gold prices briefly surpassing US$1,900 per ounce for the first time since 2011.

In Toronto, the S&P/TSX composite index closed down 21.59 points at 15,997.06.

For the week, it was off by 124.42 points, ending a run of three consecutive weekly gains.

“We’re going through earnings season so there are a lot of results out right now and what we’re getting is a mix of numbers,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.

“We’re kind of in the middle of some profit taking, some bargain hunting, some rotation between sectors,” he said.

“It’s a very different kind of market than what we’ve been used to the last couple of years. It’s not one where everything’s going up or everything’s going down. It’s back into being more of a stock picker’s market.”

Materials shone brightest among sectors trading in Toronto as the August gold contract closed up US$7.50 at US$1,897.50 an ounce, tantalizingly close to the record US$1,1120 per ounce set in 2011.

Yamana Gold Inc. stock rose 9.29 per cent, or 72 cents, to $8.47 on Friday after the company hiked its dividend and suggested it could increase its production guidance for 2020.

Wheaton Precious Metals Corp. was up 5.62 per cent, or $3.83, to $71.93 and Lundin Gold Inc. rose 4.36 per cent, or 51 cents, to $12.22.

The September crude contract was up 22 cents at US$41.29 per barrel.

Cieszynski said the market is beginning to accept a stabilized price near US$40 after extreme volatility caused by the pandemic lockdowns of the past few months.

Two oilsands producers who reported earnings earlier this week were among the most active. Suncor Energy Inc. fell 62 cents to $23.13 and Cenovus Energy Inc. rose seven cents to $6.73.

The September natural gas contract was up 3.2 cents at nearly US$1.87 per mmBTU.

Utilities were the worst performing sector on the day, with Brookfield Renewable Partners LP off by $2.26 to $71.04 and TransAlta Corp. down 24 cents to $8.44.

The September copper contract was down 4.6 cents at about US$2.89 a pound.

South of the border, the tech sector weighed down all three major U.S. stock averages for the second day in a row as tensions continued to rise between the world’s two largest economies.

On Friday, China ordered the United States to close its consulate in the western city of Chengdu, in apparent response to the Trump administration ordering Beijing earlier this week to close its consulate in Houston.

In New York, the Dow Jones industrial average was down 182.44 points at 26,469.89.

The S&P 500 index was down 20.03 points at 3,215.63, while the Nasdaq composite was down 98.24 points at 10,363.18.

The Canadian dollar traded for 74.51 US compared with 74.67 on Thursday.

“We could continue to see the market consolidate and trend sideways for the next several weeks as we work our way through earnings reports. That will take us to the latter part of August,” said Cieszynski.

He said he expects political conventions and other news concerning U.S. presidential election campaigns will then start to have greater sway in the markets.

By Dan Healing in Calgary

This report by The Canadian Press was first published July 24, 2020.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX:YRI, TSX: WPM, TSX:LUG, TSX:SU, TSX:CVE)

The Canadian Press

Note to readers: This is a corrected story. A previous version provided an incorrect number for the change in the TSX/S&P index.

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

County of Paintearth raising alarms over proposed oil and gas assessment changes

A change in the assessment model used for oil and gas will impact the tax revenue rural municipalities collect

Alberta reports 257 new cases of COVID-19

Central zone has 157 active cases

Putting agriculture back in the classroom

Alberta teachers get first hand experience through the Canadian Agricultural Partnership’s Agriculture Literacy Program

Update: Possible drowning at Pigeon Lake involved man and woman from Edmonton

Bodies recovered from Pigeon Lake’s northeastern shores.

Sylvan Lake man’s documentary getting limited run in Alberta theatres

Scott McDermott’s documentary will be in 14 theatres, including Sylvan Lake and Wetaskiwin

Canada to match donations to Lebanon relief

Canada is directing all of its aid for this crisis directly to humanitarian organizations, not the Lebanese government

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

Oilers 50/50 raffle delayed as team resolves errors, offers refunds

Alberta fans who want to void any ticket purchases will have until noon Thursday

Sylvan Lake couple donates $850,000 to AACS

The doantion will be put towards a new X-Ray machine for the facility

Who can dismiss the Governor General? A look at protocols and possibilities

The Governor General is appointed by the Queen, on the advice of the prime minister

Second phase of NHL draft lottery set for Monday

Each club eliminated from qualifying round has a 12.5 per cent shot at the No. 1 pick

Collapse of Nunavut ice shelf ‘like losing a good friend:’ glaciologist

The ice shelf on the northwestern edge of Ellesmere Island has shrunk 43 per cent

13-year-old charged in death of boy, 10 in Maskwacis

The RCMP Major Crimes Unit have laid a manslaughter charge against a 13-year-old boy from Maskwacis.

Most Read