“Inflation is when you pay fifteen dollars for the ten dollar haircut you used to get for five dollars when you had hair” – Sam Ewing
TSX Gains for Ninth Straight Week, Its Longest Winning Streak Since 1996
The Toronto Stock Exchange’s S&P/TSX composite index dropped 42.83 points (0.27 per cent) to finish at 16,039.26. The TSX was up 30.10 points (0.19 per cent) over last week’s finish at 16,020.16. The TSX is now on a nine-week winning streak, its longest such string of weekly gains since 1996.
Five of the TSX’s 10 main sectors were up on Friday, and six of the 10 main sectors were up on the week.
During this nine-week run of gains, the TSX – a performance laggard for much of 2017 – has jumped by over seven per cent. In the same timeframe, U.S. Crude Oil has jumped from $48.54 (USD) per barrel to $56.90 (USD) per barrel, a 17 per cent jump.
After reaching as high as $1,288 (USD) per ounce earlier in the week, Gold dropped $11.90 (0.92%) on Friday to finish $1,275.60. Even with Friday’s pullback, the precious metal was up $5.40 USD per ounce (0.43%) over last Friday’s finish of $1,270.20 USD.
The Loonie sat at 78.93 cents to the Greenback as of Friday 3:31pm PST, a rise of 11 basis points for the day, and 56 basis points (0.71 per cent) for the week.
U.S. Markets Flat Friday, Trump’s Tax Plan Concerns Weigh on Wall Street
Senate Republicans released their tax plan on Thursday. The plan significantly differs from the version that House Republicans tabled earlier; notably, the Senate’s plan called for corporate tax cuts… next year. A key pillar of Trump’s campaign included tax reform and corporate tax cuts. The expectation of corporate tax cuts helped propel the U.S. markets to unprecedented heights.
It is unlikely that Wall Street would look kindly upon a corporate tax cut delay of a year, with a market pullback a probable result.
The S&P 500 dropped 2.32 points (0.09 per cent) on Friday to settle at 2,582.30, a small decline of 5.54 points, or 0.21 per cent for the week.
The Dow Jones Industrial Average (DJIA) also pulled back Friday and for the week, with a Friday decrease of 39.73 points (0.17 per cent) and of 116.98 points (0.50 per cent) for the week.
NASDAQ bucked the Wall Street trend on Friday, with a modest 0.89 point, 0.01 per cent increase on Friday; however, the NASDAQ followed its counterparts downward for the week, with a 13.50 point, 0.20 per cent drop.
Sources: Globe Advisor, Yahoo! Finance