NASDAQ: AMD – Downward Day in Store for Stocks

The S&P/TSX Composite slid 100.71 points to end Thursday at 18,274.07.

The Canadian dollar strengthened 0.44 cents to 79.29 cents U.S.

March futures sank 0.2% Friday.

Magna International on Friday forecast full-year revenue above analysts’ estimates after fourth-quarter profit surged 67% on a rebound in vehicle sales from pandemic lows.

CIBC raises target price on Canadian Tire to $202 from $198

CIBC also raised the target price on CCL Industries to $72.00 from $70.00

Canaccord Genuity cut the rating on Superior Plus to hold from buy

On the economic front, Statistics Canada said retail sales posted their largest decline since the low of April driven by the COVID-19 pandemic, decreasing 3.4% to $53.4 billion in December.

ON BAYSTREET

The TSX Venture Exchange lost 12.26 points, or 1.1%, Thursday to 1,072.09.

ON WALLSTREET

Stock futures were higher early Friday after Treasury Secretary Janet Yellen said a large COVID relief package is needed for a full recovery in the U.S.

Futures for the Dow Jones gathered 95 points, or 0.3%, to 31,458.

Futures for the S&P 500 picked up 17.25 points, or 0.4%, at 3,926.75.

Futures for the NASDAQ Composite improved 83 points, or 0.6%, to 13,716.

The S&P 500 has retreated 0.5%, and the NASDAQ Composite is down 1.6% this week, on track to break their two-week winning streak. The blue-chip Dow is up just 0.1% week to date.

Applied Materials, which makes the equipment used to manufacture semiconductors, gave a better-than-expected second-quarter forecast after the bell Thursday. The shares gained 5% in pre-market trading Friday. Other chip-related stocks also rose, including Lam Research, AMD and Nvidia.

Yellen told the media Thursday that more stimulus is necessary even as some economic data suggested a rebound is already underway. She added a $1.9-trillion stimulus deal could help the U.S. get back to full employment in a year.

The stock market’s rally to records has stalled a bit this week as fears of rising rates and higher inflation crept in. The S&P 500 fell for a third straight day on Thursday after a worse-than-expected reading on jobless claims as well as weak guidance from Walmart. The 10-year Treasury yield this week rose to the highest in nearly a year, though on Friday was still at only 1.3%.

Many on Wall Street agree with Yellen that a large stimulus is needed and that a trillion-dollar package, along with a smooth economic reopening this year, will cause the market rally to continue.

The House of Representatives will try to pass a $1.9-trillion coronavirus relief plan before the end of February, Speaker Nancy Pelosi said Thursday. Democratic Congressional leaders may try to pass a package without votes from Republicans.

Overseas, in Japan, the Nikkei 225 fell 0.7%, while in Hong Kong inched higher 0.2%.

Oil prices backtracked 99 cents to $59.53 U.S. a barrel.

Gold prices docked $2.30 to $1,772.70. U.S.