It’s been an up-and-down week for N.A. markets as investors continue to weigh the latest economic data against the prospect of economies reopening for business in the coming weeks. The Dow and S&P 500 both lost ground Monday as investors began to assess what is certain to be a rough corporate earnings season. According to the Wall Street Journal, almost 300 companies have withdrawn their financial guidance, while roughly 175 have suspended stock buybacks or cut dividends.
On Tuesday, both JPMorgan Chase and Wells Fargo reported steep declines in Q1 profits as they set aside billions for potential loan losses. Meanwhile, oil prices fell to near 18-year lows, even after a weekend agreement by OPEC, Russia and the U.S. to cut supply by as much as 20 million barrels a day. Despite the worrying earnings reports, N.A. stocks surged as optimism that the Trump administration could move to ease lockdowns from the coronavirus lifted investors’ spirits. By Tuesday’s close, the Dow was up 559 points, while the TSX added 182 points.
However, U.S. stocks were down again on Wednesday as fresh data showed that U.S. retail sales fell nearly 9% in March from a month earlier and U.S. industrial production fell 5.4% for March, its biggest monthly drop since 1946.
The news out of Canada was equally stark as Statistics Canada reported that the domestic economy shrank a record 9% in March from February. By Wednesday’s close, the Dow was down nearly 450 points, while the TSX surrendered 300.
U.S. stocks finished slightly higher Thursday, despite new data showing that more than 22 million Americans have now filed for unemployment benefits since mid-March. Meanwhile, Canada lost over 177,000 jobs in March. Weighed down by the energy sector and financials, the TSX struggled again Thursday, shedding 59 points.
source https://richarddri.ca/n-a-markets-struggle-for-traction/
Dri Financial Group 