Dramatic Selloff Closes the Week

Canadian stocks mirrored the bleeding exhibited by their American cousins Friday, as the North American selloff continued.

The TSX Composite Index plummeted 464.03 points, or 2.1%, to conclude Friday and the week at 21,186.38. Over the last five sessions, the index crumbled 669 points, or 3.1%.

The Canadian dollar faded 0.80 cents to 78.63 cents U.S.

Bank of Canada Governor Tiff Macklem said on Thursday supply pressures were showing no signs of easing and the central bank will be watching the impact of higher interest rates on inflation to gauge how much it needs to tighten policy.

Financials ended up with the worst bruises, as ECN Financial lost 32 cents, or 5.1%, to $5.99, while Element Fleet Management doffed 45 cents, or 3.8%, to $11.27.

In consumer discretionary stocks, Canada Goose Holdings handed over $!.79, or 6%, to$27.94, while Canadian Tire forfeited $7.68, or 4%, to $183.54.

The materials sector was also punished, with First Quantum Minerals sinking $3.31, or 8.4%, to $36.01, while Lundin Mining collapsed 76 cents, or 5.9%, to $12.23.

On the economic front, Statistics Canada reported retail sales edged up 0.1% to $59.9 billion in February.

Higher sales at clothing and clothing accessories stores and gasoline stations were offset by lower sales at motor vehicle and parts dealers.

The agency’s industrial product price index The Industrial Product Price Index rose 4.0% month over month in March, the largest monthly change on record since the series began in 1956.

Year over year, the index increased 18.5%, its biggest gain since December 1974,

StatsCan’s raw materials price index was up 11.8% on a monthly basis in March and 42.7% year over year.

ON BAYSTREET

The TSX Venture Exchange let go of 18.98 points, or 2.2 Friday ,to 836.63, a loss on the week of 56 points, or 6.3%

All 12 TSX subgroups were lower Friday, with financial and consumer discretionary stocks each down 2.1%, while materials sank 2%.

ON WALLSTREET

Stocks plunged on Friday, pulling the Dow Jones Industrial Average and S&P 500 down for consecutive weekly declines, as traders weighed a raft of corporate earnings and rising interest rates.

The 30-stock index withered 981.36 points, or 2.8%, to 33,811.46, for its worst day since 2020.

The S&P 500 skidded 121.88 points, or 2.8% to 4,271.78, for its lowest day since March.

The NASDAQ Composite plunged 335.36 points, or 2.6%, to 12,839.29.

UnitedHealth fell more than 3%, shaving more than 100 points off the Dow. Caterpillar also took out nearly 100 points from the 30-stock average, dropping 6.6% on the day. Goldman Sachs, Home Depot and Visa were also big downside contributors.

Those losses put the Dow down 1.9% for the week, its fourth straight weekly decline and its ninth losing week of the last 11. The S&P 500 fell to a three-week slide, and was down 2.8% on a weekly basis. The NASDAQ was the laggard this week, losing 3.8%.

Companies reporting disappointing quarterly results led the market decline Friday. HCA Healthcare dropped 21.8% and was the worst-performing stock in the S&P 500. The decline came as the company posted weak full-year earnings and revenue guidance.

That led other names in the sector lower. Intuitive Surgical and Universal Health Services each lost about 14%. DaVita fell almost 9.1% and DexCom fell 6.7%.

Verizon shares fell 5.6% after the company reported a loss of 36,000 monthly phone subscribers in the first quarter.

Shares of Gap plunged 18% after the company announced the CEO of its Old Navy division, Nancy Green, is leaving the business this week. Gap also slashed its outlook for net sales growth in fiscal 2022.

Treasury prices were slightly lower, inching yields up to 2.90% from Thursday’s 2.89%. Treasury prices and yields move in opposite directions.

Oil prices subtracted $2.12 at $101.67 U.S. a barrel.

Gold prices dipped $14.00 to $1,934.20 U.S. an ounce.

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