Canada’s main stock index fell on Friday, as the technology sector echoed a downbeat mood on Wall Street following Amazon’s disappointing forecast, although the index was on track for nine straight months of gains.
At 9:41 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 82.69 points, or 0.39%, at 21,038.37.
U.S. stocks fell as Amazon pressured growth stocks. Toronto-listed technology shares dipped 1.1%, reflecting the drop on Wall Street.
“Amazon’s update was worrying as it not only put the company into its first quarterly loss since 2015, but it also painted a gloomy picture for the retail market in general,” said Russ Mould, investment director at AJ Bell.
The energy sector climbed 0.7% as oil prices rose for a fourth day as fears over Russian supply disruption overshadowed COVID-19 lockdowns in China, the world’s biggest crude importer.
The financial sector slipped 0.4%, while the industrial sector fell 1%, dragged down by a 22% fall in shares of NFI Group following downbeat 2022 forecast.
The materials sector, which includes precious and base metals miners and fertilizer companies, added 0.5% as gold futures rose 1.4% to $1,915 an ounce boosted by a pullback in the dollar.
The TSX benchmark index is on track to record its ninth straight month of gains as its wider exposure to resources-linked sectors has helped it sidestep worries about inflation and geopolitical tensions.
On the economic front, domestic economy most likely grew by 5.6% on an annualized basis in the first quarter, Statistics Canada said, as growth in February beat expectations and real gross domestic product was seen increasing again in March.
On the earnings front, Imperial Oil Ltd rose 0.2% after reporting a first-quarter profit that nearly tripled, while pipeline operator TC Energy dipped 2% despite turning a quarterly profit.
Magna International Inc fell 3% after the auto parts maker lowered its annual profit forecast on Friday as strict COVID-19 lockdowns in China, rising inflation and raw material costs are set to pressure vehicle sales.
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