Toronto’s main stock index skidded into negative territory by lunch hour Friday as gold and materials floundered, while U.S. Federal Reserve Chair Jerome Powell kept the doors open for more interest rate hikes on still-high inflation.
The TSX slid 18.24 points to move into noon hour EDT Friday at 19,757.59.
The Canadian dollar wilted 0.22 cents to 73.37 cents U.S.
Among individual companies, TD Bank Group on Thursday said it is expected to be imposed by fines and “non-monetary” penalties related to the investigations by U.S. authorities over its anti-money laundering compliance program.
TD shares stumbled 67 cents to $80.00.
Shares of the country’s second-largest bank fell over 1%, extending declines from the previous session after it missed profit estimates.
Investors will focus on Canada’s big bank earnings slated for next week as they look to assess the health of the financials sector, which is the biggest constituent of the benchmark stock index.
ON BAYSTREET
The TSX Venture Exchange fell 3.24 points to 580.59.
Still, seven of the 12 TSX subgroups remained positive midday, with health-care and energy each headed higher 0.7%, while utilities added 0.5%.
The five laggards were led by gold, dulling 1%, and materials, settling 0.7%, and financials, tailing 0.6%.
ON WALLSTREET
U.S. stocks rose on Friday as Wall Street traders digested Federal Reserve Chairman Jerome Powell’s Jackson Hole speech, which kept the door open for further action from the central bank.
The Dow Jones Industrials gained 106.6 points to pause for lunch at 34,206.02.
The S&P 500 index forged their way higher 3.26 points to 4,379.57.
The NASDAQ index dropped 22.16 points to 13,441.81.
Given that Powell gave no clear indication of which way he sees interest rates heading, Krosby pointed to the trajectory of rising U.S. Treasury yields as a key underpinning of market direction.
Shares of Hawaiian Electric fell 17% following news that Maui County is suing the utility company for damages over the island’s wildfires.
The county’s suit, filed Thursday, said Hawaiian Electric kept its power lines energized despite a warning from the National Weather Service that high winds and drought conditions created a high fire risk.
Prices for the 10-year Treasury were lower, boosting yields to 4.25% from Thursday’s 4.24%. Treasury prices and yields move in opposite directions.
Oil prices picked up 52 cents to $79.57 U.S. a barrel.
Gold prices sagged $10.60 to $1,936.50 U.S. an ounce.
