“No man has a good enough memory to be a successful liar” – Abraham Lincoln
Toronto Stock Exchange Finishes Down For the Week as Financials, Energy and Minerals Slump
The Toronto Stock Exchange’s S&P/TSX composite index rose 31.97 points, to finish at 15,192.54, as 6 of the 10 main sectors finished higher than they opened. For the week, the TSX was down 280.67 points, and on Thursday, the TSX dropped to a 6-month low. The usual suspects were at work this week, with the financial, energy and mineral sectors retreating.
Oil suffered a steep drop on Wednesday before rebounding slightly to close out the week. Gold dropped by $14 per ounce for the week, to finish up at $1,255.20 per ounce. Earlier in the week, the heavyweight banks fell off after some gains last week.
The possibility of a Bank of Canada rate hike in the near future was raised on Monday on comments from a Bank of Canada senior official.
Amazon Announces Deal to Buy Whole Foods, Federal Reserve Raises Key Rate
South of the border, the Federal Reserve opted to raise its key rate to a range of 1% – 1.25%, its highest level since the Global Economic Crisis of 2008. Fed Chair Janet Yellen’s commentary on the matter has led some analysts to conclude that another rate hike will be coming later this year. Analysts are weighing how much the rate increase will affect the economy.
In other news, Amazon announced a major deal to buy Whole Foods for $13.7 Billion. This announcement led to downswings in the consumer staples sector, and these drops weighed on the Dow Jones Industrial Average (DJIA) overall, resulting in a muted rise of 24.38 points to close up at 21,384.28 overall.
The NASDAQ was pulled lower by Apple – among others – to drop 13.74 points to finish at 2,433.15.
U.S. home starts dropped for the third straight month in May.
Sources: Globe Advisor