Stocks Fall on Rate Hike Fears

Equities in Canada’s largest centre slipped on Friday, as a rise in long-term government yields fueled rate hike worries, while a drop in copper prices dragged material stocks lower.

The TSX Composite lost 74.47 points to begin the week’s last session at 19,274,34.

The Canadian dollar gained 0.24 cents at 73.13 cents U.S.

On the economic calendar, Statistics Canada told investors retail sales decreased 0.1% to $66.1 billion in August. Sales were down in six of nine subsectors and were led by decreases at motor vehicle and parts dealers.


The TSX Venture Exchange inched up 1.18 points to 525.

Seven of the 12 TSX subgroups were negative in the first hour, with financials and energy stocks each down 0.6%, and communications off 0.4%.

The five gainers were led by gold, up 0.7%, consumer discretionary stocks, ahead 0.4%, and consumer staples, better by 0.3%.


Stocks dipped Friday as traders focused on a recent run higher in the 10-year Treasury yield.

The Dow Jones Industrials swooned 176.25 points to start Friday at 33,237.92.

The S&P 500 index dropped 29.02 points to 4,248.98.

The NASDAQ index dropped 96.44 points to 13,186.18.

Friday’s slide deepened losses for the week. The S&P 500 is down 1.3% on the week, while the NASDAQ is off 2.1%. The Dow has lost 0.8%.

Shares of SolarEdge tumbled more than 26% after the company trimmed its third-quarter revenue guidance. Knight-Swift Transportation rallied nearly 11% after beating estimates in the third quarter on both lines.

The yield on the benchmark 10-year Treasury crossed 5% for the first time in 16 years on Thursday. The 10-year yield hit 5.001% around 5 p.m. ET, the first time it has traded above that level since July 20, 2007 — when it yielded as high as 5.029%.

Prices for the 10-year Treasury moved forward, lowering yields, for now, to 4.94% from Thursday’s 4.98%. Treasury prices and yields move in opposite directions.

Oil prices gained 82 cents to $90.19 U.S. a barrel.

Gold prices advanced $20.20 to $2,000.70.

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