LONDON —
Stocks fell broadly on Wall Street and oil prices surged Friday after a U.S. strike killed a top Iranian general in Iraq, raising tensions in the Middle East.
The selling, which lost some momentum toward the end of the day, ended a five-week winning streak for the S&P 500 a day after the benchmark index hit its latest record high.
The price of U.S. crude oil climbed 3.1%. Investors sought safety in U.S. government bonds, sending their yields lower. The price of gold rose.
Technology, financial and health care stocks accounted for much of the selling. Companies that rely on consumer spending also fell, along with airlines. Several energy stocks got a boost from higher oil prices. Defence contractors also notched gains.
The strike marks a major escalation in the conflict between Washington and Tehran, as Iran vowed “harsh retaliation” for the killing of the senior military leader.
“Until now, the two big risks have been policy — trade and the Fed,” said Jeff Kravetz, regional investment director at U.S. Bank Private Wealth Management. “This introduces a wildcard, which is a third risk: rising political tensions in the Middle East.”
The S&P 500 dropped 23 points, or 0.7%, to 3,234.85. The index ended with a 0.2% loss for the week.
The Dow Jones Industrial Average fell 233.92 points, or 0.8%, to 28,634.88. The index briefly dropped 368 points.
The Nasdaq lost 71.42 points, or 0.8%, to 9,020.77. The Russell 2000 index of smaller company stocks gave up 5.90 points, or 0.4%, to 1,660.87.
The major stock indexes were coming off record highs after closing out 2019 earlier in the week with the best annual performance by the S&P 500 and Nasdaq since 2013.
Investor sentiment has been mostly positive in recent weeks as concerns about the strength of the economy and the possibility of further escalation in the U.S.-China trade war eased. Three interest rate cuts by the Federal Reserve have also helped steady markets.
But the market’s relative calm ended with Friday morning’s news that the U.S. had killed Gen. Qassem Soleimani, head of Iran’s elite Quds Force, in an air attack at the Baghdad international airport.
President Donald Trump said the attack was ordered because Soleimani was plotting to kill many Americans. The Pentagon took steps to reinforce the American military presence in the Middle East in preparation for reprisals from Iran.
“We’ll probably see some short-term volatility, but it’s doubtful that it’s going to escalate to something that is a meaningful concern for investors,” Kravetz said.
The heightened geopolitical risk sent oil prices higher Friday. Benchmark U.S. crude climbed $1.87, or 3.1%, to settle at $63.05 per barrel. It had been up 3.6% earlier in the day. Brent crude, used to price international oils, rose $2.35, or 3.5%, to close at $68.60 per barrel.
Energy companies made gains over concerns that a U.S.-Iran conflict could disrupt global supplies and send oil prices even higher. Occidental Petroleum rose 2.4% and Hess gained 3.1%.
The surge in oil helped pull down airline stocks and drove up shares in defence contractors.
American Airlines Group dropped 5%, United Airlines Holdings slid 2.1% and Delta Air Lines lost 1.7%. Meanwhile, Northrop Grumman climbed 5.4%, Raytheon rose 1.5% and Lockheed Martin gained 3.6%.
The price of gold, which investors buy in times of uncertainty as a safe haven of value, rose $24.70, or 1.6%, to $1,549.20 per ounce.
Bond prices rose. The yield on the 10-year Treasury fell to 1.79% from 1.88% late Thursday, a big move. Lower bond yields bring down the interest rates that banks charge for mortgages and other consumer loans, making them less profitable. That prompted a sell-off in bank shares. JPMorgan slid 1.3%, Bank of America dropped 2.1% and Citigroup lost 1.9%.
Investors bid up Lamb Weston after the frozen foods supplier’s fiscal second-quarter earnings and revenue beat Wall Street analysts’ forecasts. The stock was the biggest gainer in the S&P 500, vaulting 11.3%.
Tesla climbed 3% after the electric vehicle maker reported a 50% rise in deliveries for 2019.
In other commodities trading, wholesale gasoline rose 5 cents to $1.75 per gallon. Heating oil climbed 4 cents to $2.06 per gallon. Natural gas rose 1 cent to $2.13 per 1,000 cubic feet.
Silver rose 10 cents to $18.07 per ounce and copper fell 3 cents to $2.80 per pound.
The dollar fell to 108.01 Japanese yen from 108.55 yen on Thursday. The euro was unchanged at $1.1166.
The heightened geopolitical tensions and surging oil prices also weighed on global markets Friday.
In Europe, Germany’s DAX tumbled 1.2%, while Italy’s FTSE MIB dropped 0.6%. Both countries are net oil importers with big manufacturing sectors. France’s CAC 40 ended flat, while London’s FTSE gained 0.2%.
Markets in Asia ended mixed. Hong Kong’s Hang Seng lost 0.3%, while India’s Sensex lost 0.5%. Australia’s S&P-ASX 200 gained 0.6%. Japanese markets were closed.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
