July 20 2012
“Deep Summer Is When Laziness Finds Respectability” -Sam Keen
Eurozone Still A Drag
The Toronto stock market closed lower Friday and commodities lost ground amid continued worries over the European debt crisis. The S&P/TSX composite index declined 42.79 points to 11,622.91 as Spain again dealt with higher borrowing costs. The Canadian dollar lost 0.48 of a cent to 98.75 cents US after the loonie closed at a two-month high on Thursday. Traders also took in data showing Canada’s annual inflation rate rose 0.3 of a percentage point to 1.5% in June. That’s up from 1.2% the previous month. U.S. markets were lower amid a mixed bag of corporate earnings from heavyweights including Microsoft Corp., General Electric and Xerox. The Dow Jones industrials tumbled 120.79 points to 12,822.57. The Nasdaq composite index dropped 40.6 points to 2,925.3 and the S&P 500 index declined 13.85 points to 1,362.66.
On the positive side the TSX racked up an overall gain for the week of 0.94 % on rising expectations that central banks will step up to ensure the economic recovery stays on the rails. Markets have also found support from a better-than-expected second quarter earnings season. “Going into this quarter, the sentiment had been very guarded to put it mildly,” said Robert Gorman, chief portfolio strategist TD Waterhouse. “People thought, given the slower rate of growth and the U.S. recovery, we might have a higher proportion of firms missing estimates. But for the most part, they have been beating bottom line expectations, not by much, but meaningfully.
Market Update as of July 20 2012
The TSX closed at 11623, up 108 points or 0.94% over the past week. YTD the TSX is down -2.78%.
The DOW closed at 12823, up 46 points or 0.36% over the past week.YTD the DOW is up 4.95%.
The S&P closed at 1363, up 6 points or 0.44% over the past week.YTD the S&P is up 8.35%.
The Nasdaq closed at 2925, up 17 points or 0.58% over the past week.YTD the Nasdaq is up 12.28%.
Gold closed at 1585, down -3.00 points or -0.19% over the past week.YTD gold is up 1.28%.
Oil closed at 91.71, up 4.46 points or 5.11% over the past week.YTD oil is down -7.27%.
The USD/CAD closed at 0.9882, up 0.0028 points or 0.28% over the past week.YTD the CAD/USD is up 0.86%.
Sources: Bloomberg, Advisor.ca, TD Waterhouse