TSX Dips on Lower GDP Growth

Canada's main stock index fell on Friday as the economy expanded at a slower pace in the third quarter, while lower oil prices amid heightening diplomatic tensions between the United States and China weighed on energy stocks.

The TSX Composite Index fell 5.32 points Friday morning from Thursday’s all-time, to 17,109.20

The Canadian dollar faded 0.18 cents to 75.12 cents U.S.

Scotiabank raised the target price on Exco Technologies to $8.00 from $7.75. Exco shares doffed three cents to open Friday at $8.45.

TD Securities raised target price on GDI Integrated Facility Services to $41.00 from $38.00. GDI shares gained 65 cents, or 1.9%, to $35.14.

On the economic slate, Statistics Canada reported that our economy fought its way up in the third quarter. Real gross domestic product grew 0.3%, following a 0.9% increase in the second quarter.

Third-quarter growth was led by higher business investment and increased household spending, boosting final domestic demand by 0.8%. For the individual month of September, GDP edged up 0.1%, as 13 out of 20 industrial sectors increased.

The agency’s industrial product price index edged up by 0.1% in October, primarily due to higher prices for energy and petroleum products.

The raw material price index was down 1.9% during the same month, primarily due to lower prices for crude energy products.

On the economic calendar, Statistics Canada reported that average weekly earnings of non-farm payroll employees were $1,042 in September, up 0.9% from August.

Compared with September 2018, earnings grew by 4.0%, continuing an upward trend observed since March.

Oil prices were off 30 cents at $58.11 U.S. a barrel.

Gold prices handed back 69 cents to $1,456.00 U.S. an ounce.

ON BAYSTREET

The TSX Venture Exchange eked up 0.49 points to begin Friday at 532.80

Seven of the 12 Toronto subgroups gained ground, albeit tentatively, as consumer staples gathered 0.4%, while communications and consumer discretionaries each picked up 0.3%.

The five laggards were weighed most by health-care, slumping 1.4%, energy, down 0.8%, and materials, off 0.3%.

ON WALLSTREET

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Stocks opened slightly lower on Friday amid worries around U.S.-China trade relations as investors wrapped up a banner month for equities.

The Dow Jones Industrials dropped 74.14 points from Wednesday’s all-time record, to 28,089.86

The S&P 500 fell 5.62 points to 3,148.01

The NASDAQ subtracted 15.27 points from Wednesday’s all-time peak to 8,689.90

Equity markets were closed Thursday for Thanksgiving. Friday’s is an abbreviated session.

The major averages, however, were headed for strong monthly gains despite Friday’s losses. The S&P 500 is up 3.8% through Wednesday’s close and is on pace for its biggest one-month gain since June, when it rallied more than 6%.

The Dow has improved 4.1%, and the NASDAQ is up 5%, for November. They were also on pace for their best month since June. Wall Street was also on pace to record solid weekly gains.

IT services company DXC Technology is the best-performing stock in the S&P 500 this month, rallying more than 30%. Chipmaker Qorvo is up 29%. Charles Schwab is also up more than 20% for the month. Disney shares have outperformed in the Dow this month, gaining 16.4% while UnitedHealth is up nearly 11% over that time period.

Stocks have been on fire this month in large part because of optimism around the U.S.-China trade negotiations. Back in October, President Donald Trump said the two sides had reached a “phase one” trade deal to be signed this month.

But that optimism has taken some hits recently, particularly this week after Trump signed a bill signed legislation supporting protesters in Hong Kong. China’s foreign ministry claimed the U.S. has “sinister intentions” after Trump signed the bill into law.

Prices for the 10-Year U.S. Treasury were lower, hiking yields to 1.78% from Wednesday’s 1.77%. Treasury prices and yields move in opposite directions.

Oil prices dropped $1.66 at $56.45 U.S. a barrel.

Gold prices strengthened two dollars to $1,462.80 U.S. an ounce.