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At midday: TSX dragged lower by financials, telecoms – The Globe and Mail

At midday: TSX dragged lower by financials, telecoms – The Globe and Mail

Canada’s main stock index lost ground on Friday, weighed by moves lower in financial stocks and a fall in shares of telecommunications company Telus Corp , which posted lower-than-expected quarterly earnings.

The index is on track for a 1.5-per-cent fall over the week.

The financials group slipped 0.7 per cent, with Brookfield Asset Management Inc down 0.7 per cent to $48.55, extending losses after reporting earnings on Thursday, and Bank of Montreal lost 1 per cent to $92.09.

Telus was one of the most influential movers on the index, falling 1.5 percent to $44.88.

At 11:15 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 59.90 points, or 0.4 per cent, at 15,014.35. Eight of the index’s 10 main groups were in negative territory, although decliners only outnumbered advancers by a 1.3-to-1 ratio.

Auto parts maker Magna International Inc fell 2.4 per cent to $58.32 despite reporting better-than-forecast quarterly profit and raising its full-year sales forecast for the second time in three months.

Wheaton Precious Metals Corp fell 3.9 per cent to $24.50 after it reported lower-than-expected revenue after the close on Thursday.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.7 per cent.

Enerplus Corp jumped 7.5 per cent to $11.57 after the oil and gas company increased its production guidance, while the broader energy group was little changed.

U.S. stocks were modestly higher in late morning trading on Friday as investors cautiously dipped back into riskier assets, after a three-day losing streak on concerns over escalating tensions between the United States and North Korea.

A weaker-than-expected July consumer price data also supported the recovery.

Still, the S&P and the Dow were on track to post their biggest weekly loss in about five months and the Nasdaq on course to post its biggest weekly fall in about six weeks.

In his latest warning to North Korea, U.S. President Donald Trump said on Friday military solutions were “fully in place” and referred to American weapons as being “locked and loaded” should the nuclear-armed nation act “unwisely.”

Nearly $1-trillion has been wiped out from global equity markets since tensions were sparked off by Trump’s “fire and fury” comments on Tuesday.

The CBOE Volatility Index, a barometer of expected near-term stock market volatility, closed at its highest since the U.S. presidential election on Thursday, but was down 1.22 points at 14.82 points on Friday.

The consumer price data, which pointed to weak inflation, could cause the Federal Reserve to hold off from raising rates again this year.

“The market is trying to interpret the CPI data as somewhat positive because it is anticipating that the Fed will be on hold not only in September but also possibly in December,” said Robert Pavlik, chief market strategist at Boston Private Wealth.

“It clears the field of another possible issue and with that you start to see a little bit of short covering going on.”

Federal funds futures suggested the chance of rate hike in December fell to 40 per cent from 42 per cent shortly before the release of the data.

The Dow Jones Industrial Average was up 54.38 points, or 0.25 per cent, at 21,898.39, the S&P 500 was up 8.69 points, or 0.35 per cent, at 2,446.90.

The Nasdaq Composite was up 34.61 points, or 0.56 per cent, at 6,251.48.

The U.S. equity market is hovering near record levels and volume has been tepid following the onset of summer. The S&P has lost more than 1 percent on only three days this year.

Six of the 11 major S&P sectors were higher, with the technology’s 0.36-per-cent rise leading the advancers.

Shares of Snap were down as much as 14.23 per cent and hit an all-time low following a miss on revenue and daily active users. At least seven brokerages cut their price targets on the stock.

Nvidia’s quarterly revenue in its data centre and automotive businesses missed estimates, dragging the chipmaker’s shares down 5.43 per cent.

J.C. Penney slumped as much as 18.25 per cent to a record low after the retailer reported a bigger-than-expected quarterly loss.

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