Markets flat as economic growth tepid
The Toronto Stock Exchange was down slightly Friday following reports of slow economic growth in both Canada and the United States, though some stocks benefited from higher gold prices.
The S&P/TSX composite index closed down 15.21 points, or 0.13 per cent, to 11,713.43. There were losses for energy and financials stocks, although materials were up.
With the back-and-forth trends on the Canadian stock markets as of late, the TSX benchmark stood at level virtually flat for the week that came to an end, as well as the month. Friday's market result marked the third loss in five days this week. It finished down less than one point for the week and up just more than five points for the month.
Looking at some of the prominent stock movements Friday, Canadian Natural Resources Ltd. was down 1.12 per cent to $35.40, and Toronto-Dominion Bank fell 1.08 per cent to $73.16. Research In Motion Ltd., on the other hand, was up for a third straight day, gaining 2.55 per cent to $59.15 as observers awaited the revealing of its latest BlackBerry on Tuesday.
The junior TSX Venture composite on Friday was up 5.07 points, or 0.36 per cent, to 1,427.36.
Statistics Canada said Friday that gross domestic product grew by 0.1 per cent in May, at the low end of the consensus forecast range of economists of between 0.1 and 0.2 per cent.
In the U.S., second-quarter GDP growth came in at an annualized rate of 2.4 per cent, less than the 2.6 per cent economists expected.
On the other hand, the University of Michigan's' U.S. consumer-sentiment index was reported at 67.8 for this month. While off from the 76 recorded for June, it was better than the preliminary estimate of 66.5.
"How self-sustaining is this economy? That's what people are questioning," Bob Decker, a money manager at Aurion Capital Management in Toronto, told Bloomberg News. "No one disputes we've got a recovery in earnings. It's the sustainability of the recovery that's being questioned."
Still, some economists found details within the U.S. GDP report that were more encouraging than what the headline number would suggest.
"If you strip out international trade — both imports and exports — the domestic U.S. economy appears to have grown north of five per cent," said Greg Newman, senior wealth adviser with ScotiaMcLeod in Toronto.
On the New York Mercantile Exchange, crude oil was up 59 cents to $78.95 U.S. a barrel after earlier declines Friday. Gold was up $12.70 to $1,183.90 U.S. an ounce.
The Canadian dollar was up 74 basis points to 97.25 cents U.S..
On U.S. stock markets, the Dow Jones industrial average was down 1.22 points, or 0.01 per cent, to 10,465.94. The Nasdaq composite index was up 3.01 points, or 0.13 per cent, to 2,254.70.
European markets were mixed, with a loss in the U.K., a flat market in France and gains in Germany. Asian markets were down.