Market week: U.S. stocks post weekly gain, strong Q3

Pressured by falling crude oil, S&P/TSX stays flat

The major North American stock indexes lost ground on Friday, as the U.S. added a disappointing 661,000 new jobs in September, while the unemployment rate fell to 7.9%. Market sentiment was also shaken on Friday by news that U.S. President Donald Trump had tested positive for Covid-19 and is now in quarantine receiving an experimental coronavirus treatment developed by pharmaceutical firm Regeneron Pharmaceuticals Inc. (NASDAQ: REGN). For the week, the big U.S. indexes still gained ground, with both the S&P 500 Composite Index and the Nasdaq Composite Index advancing 1.5%.

Canada’s gross domestic product grew 3% in July, with all 20 industrial sectors showing increases. The flash estimate for August indicated 1% growth in GDP. Year-over-year, GDP is still posting a contraction of 5.0%. Canada’s stock benchmark, the S&P/TSX Composite Index, gained 0.1% in Friday’s session, but ticked down a marginal 0.1% for the week overall as the price of crude oil slumped 7.6% on the week while gold rose 2.2%.

Despite across-the-board losses for September overall, the major indexes turned in solid third-quarter performance, with the S&P/TSX Composite gaining 3.9%, the S&P 500 up 8.5%, and the Nasdaq Composite advancing 11%.

Fund news and updates

* BMO shuts down three ETFs. BMO Asset Management Inc. announced on Sept. 30 that it is terminating three low-performing ETFs, on or about Dec. 15.

BMO Junior Gas Index ETF (TSX: ZJN), assets of $3 million.
BMO Junior Oil Index ETF (TSX: ZJO), assets of $8 million.
BMO MSCI EAFE Value Index ETF (TSX: ZVI), assets of $5 million.

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Disclaimer

The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.