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

Rimbey Meals on Wheels volunteer driver Diana Pearman picks up a bin of supplies to start her week of delivering the hot meals.
photo submitted
Rimbey’s Meals on Wheels program continues to meet the need

Volunteers are always welcome to help with the long-running FCSS program

(Photo Submitted by the Gord Bamford Foundation)
Lacombe’s Gord Bamford to perform a virtual concert for a good cause

The concert aims to raise awareness for Operation Santa Clause

Alberta Health Services' central zone jumped from 162 active COVID-19 cases to 178 on Friday. Five additional deaths were reported provincewide, bringing the toll to 323. THE CANADIAN PRESS/Graham Hughes
622 new COVID-19 cases set another daily high Friday

Province confirmed 622 additional cases Friday

(Photo submitted)
Rimbey resident avid author despite Parkinson’s

Wins more accolades for her writing

Alberta children whose only symptom of COVID-19 is a runny nose or a sore throat will no longer require mandatory isolation, starting Monday.
477 new COVID-19 cases confirmed in Alberta on Thursday

Changes being made to the COVID-19 symptom list for school-age children

Over the years, Janice Blackie-Goodine’s home in Summerland has featured elaborate Halloween displays and decorations each October. (File photo)
QUIZ: How much do you really know about Halloween?

Oct. 31 is a night of frights. How much do you know about Halloween customs and traditions?

A man runs across the Carcross Dunes in Carcross, Yukon, on July 2, 2018. THE CANADIAN PRESS/Darryl Dyck
‘No manual or checklist:’ Yukon ditching fall time change this year

The territory decided to adopt year-round daylight time in March

Innovation Minister Navdeep Bains makes an announcement regarding vaccine procurement, in Toronto, on Wednesday, Aug., 5, 2020. Despite its status as an artificial intelligence hub, Canada has yet to develop a regulatory regime to deal with issues of privacy, discrimination and accountability to which AI systems are prone, prompting calls for regulation from businesses and experts. THE CANADIAN PRESS/Christopher Katsarov
Canada crawling toward AI regulatory regime, but experts say reform is urgent

5 million images of shoppers collected without consent at Canadian malls

FILE - In this Jan. 23, 1987 file photo, actor Sean Connery holds a rose in his hand as he talks about his new movie "The Name of the Rose" at a news conference in London. Scottish actor Sean Connery, considered by many to have been the best James Bond, has died aged 90, according to an announcement from his family. (AP Photo/Gerald Penny, File)
Actor Sean Connery, the ‘original’ James Bond, dies at 90

He died peacefully in his sleep overnight in the Bahamas

(Photo Submitted by the Gord Bamford Foundation)
Lacombe’s Gord Bamford to perform a virtual concert for a good cause

The concert aims to raise awareness for Operation Santa Clause

City of Wetaskiwin Mayor presenting the AUMA Above & Beyond Award to John Maude and Susan Quinn. Ren Goode/ City of Wetaskiwin.
Wetaskiwin County residents win the AUMA Above & Beyond Award

John Maude and Susan Quinn are being recognized for their role in Wetaskiwin’s sustainability.

Conservative leader Erin O’Toole rises during Question Period in the House of Commons in Ottawa on Wednesday October 28, 2020. (Adrian Wyld/The Canadian Press)
Conversion therapy ban gets approval in principle, exposes Conservative divisions

Erin O’Toole himself voted in favour of the bill, as did most Conservative MPs

(Pixabay photo)
Spoooky, scaaaary: The ultimate Halloween-in-quarantine playlist

All the costumes, trick-or-treating and spooky-season fun is essentialy off the table due to COVID-19

Pilots Ilona Carter and Jim Gray of iRecover Treatment Centres, in front of his company’s aircraft, based at Ponoka’s airport. (Perry Wilson/Submitted)
95-year-old Ilona Carter flies again

Takes to the skies over Ponoka

Most Read