Markets end the week down, but rangebound on weak China GDP and Boeing bombshell
Toronto and New York indices closed Friday in the red with the Dow falling the most, nearly 1%. China issued its weakest GDP numbers since 1992 which spooked investors before the opening bell and set the tone for the rest of the session. Then, at lunchtime, The New York Times issued a stunning article that revealed that a key Boeing pilot had voiced concerns about the software system in the Boeing 737 Max, two years before two horrific crashes that led to the grounding of the plane worldwide. The pilot confessed to lying to the FAA.
Unsurprisingly, Boeing stock plunged 6.79%. Johnson & Johnson also weighed down the Dow as it recalled baby power for containing traces of asbestos. JNJ fell 6.2%. On the tech side, Netflix gave back 6.15% after enjoying a post-earnings pop the day before. Investors are focused on Disney launching its streaming service on Nov. 12. The TSX was also in the red, but nearly not as deep as its American siblings. One of the worst-performers on Friday was Corus, which fell 10.12% after lowering its Q4 profit forecast and RBC downgraded the stock.
Despite all the gloomy news Friday, North American indices finished the week only modestly lower than a week ago, as America wades into earnings seasons and awaits the first draft of the China-US trade agreement. Here, Canadians will enter Monday’s election in a dead heat between the Liberal and the Tories in the polls. Enjoy your weekend, because next week will be wild.