Partial rebound to close a choppy week
Buying-the-dip was the theme in Friday’s trading as the TSX bounced back 1.37% and American indices rallied 1-1.9%. The morning began strong but faded until mid-afternoon when buyers returned to pick up cheap stocks.
Big movers on Wall Street included Boeing, soaring 11.48%, Starbucks up 5.24% and Bank of America at 3.55%. The Dow lost 5.5% for the week and TSX slipped 3.77%, making it the worst week in three months. Then again, stocks had been enjoying a sharp rebound with some warning that markets were overheating. Leading the charge have been the tech giants; this week, the Nasdaq made an all-time high and cracked 10,000 though closed Friday at 9,588. On Thursday, stocks sold off 4-7% in reaction to the U.S. Fed’s cautious outlook for the American recovery and to the number of Covid cases increasing in some states.
In Toronto, real estate, energy, industrials and financials rallied. Shawcor soared nearly 36% as Boston Pizza popped 12%. Air Canada regained 8.68% in heavy trading. In earnings news, Lululemon sold off reported an earnings decline and miss in Q1 due to the Covid-19 lockdown. YOY sales slid 17%. Lululemon sold off 3.82%. Oil and gold were flat for the day.