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Canada’s main stock index rose narrowly on Friday morning, as a more than 2-per-cent drop in oil prices pushed energy stocks lower.

At 11:31 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite Index was up 29.75 points, or 0.18 per cent, at 16,145.32.

Oil prices fell as Saudi Arabia and Russia said they were ready to ease supply curbs that have pushed crude prices to their highest since 2014.

The energy sector fell 2.8 per cent, weighed down by 2-per-cent drop in shares of Suncor Energy and 2.6-per-cent dip in Canadian Natural Resources.

Also weighing on TSX was the 0.1-per-cent drop in shares of materials group, which includes precious and base metals miners.

Mine developer Northern Dynasty ended talks with First Quantum to partner on an Alaska mine, which sent shares of the copper miner down 24.4 per cent.

Seven of the index’s eleven major sectors were higher, led by the industrials sector that rose 1.3 per cent.

Boosting the industrials were shares of civil aviation training provider CAE Inc, which rose 6.1 per cent after posting first-quarter results.

The Canadian dollar weakened to a more than two-week low against the greenback as oil prices fell and the U.S. dollar broadly climbed.

Energy companies and oil prices are sinking again Friday morning on reports OPEC countries plan to produce more oil soon. Overall U.S. stocks are slightly lower as falling bond yields put pressure on banks, but they are helping dividend-payers like household goods makers. Airlines are climbing as investors anticipate lower fuel costs. Gap is tumbling after it had a weak first quarter as its namesake brand continued to struggle.

The S&P 500 index slid 3 points, or 0.1 per cent, to 2,724. The Dow Jones industrial average fell 15 points, or 0.1 per cent, to 24,795. The Nasdaq composite climbed 17 points, or 0.2 per cent, to 7,442 as technology and consumer-focused companies moved higher. The Russell 2000 index of smaller-company stocks lost 1 point, or 0.1 per cent, to 1,626.

The New York Stock Exchange was evenly split between winners and losers.

Benchmark U.S. crude dropped 3.5 per cent to $68.25 a barrel in New York. Brent crude, used to price international oils, fell 2.5 per cent to $76.79 a barrel in London. According to multiple reports, countries including Saudi Arabia and Russia want OPEC to produce more oil. The nations agreed to reduce production last year in response to a big buildup in supplies that pushed prices lower, but they could change their policy at a meeting in June. If so, it could reduce profits for energy companies.

Exxon Mobil fell 1.9 per cent to $78.71 and Hess tumbled 5.4 per cent to $59.04. The S&P 500 energy index is down 5 per cent this week. That would be its worst loss since early February.

Airlines rallied. Delta gained 2.6 per cent to $55.83 and American rose 4.3 per cent to $45.44. The stocks have skidded over the last few months as the rising price of oil increased their fuel costs and cut into their profits. Delta stock is essentially flat in 2018 and American Airlines has fallen 13 per cent.

U.S. bond prices kept rising. The yield on the 10-year Treasury note fell to 2.93 per cent form 2.98 per cent. Bank stocks fell. KeyCorp lost 1 per cent to $20.12 and Citigroup fell 0.9 per cent to $68.69.

Household goods makers broke out of their recent struggles. Toothpaste maker Colgate-Palmolive added 2.2 per cent to $63.84 and Cheerios maker General Mills rose 1.8 per cent to $42.95. The stocks, and others that pay large dividends, have lagged behind the rest of the market as investors found technology firms and consumer-focused more attractive thanks to strong growth in the U.S. economy, and rising yields have made bonds more appealing investments.

Gap dropped 13.5 per cent to $28.50 following a drop in sales for Gap brand stores. Gap has been shifting focus away from the namesake brand because it’s not connecting with shoppers and has struggled to separate itself from rivals. Its Old Navy and Banana Republic brands fared better. Elsewhere, discount retailer Ross Stores gave up 6.3 per cent to $77.73 after it gave disappointing forecasts for the current quarter and the full year.

Foot Locker blew past estimates and said sales of premium shoes continue to improve, which has been a major concern for it and other sporting goods companies. The stock jumped 14.4 per cent to $53.05. Shoe Carnival leaped 17.4 per cent to $30.91 after it beat expectation in the first quarter. It, too, said athletic shoe sales improved.

Sporting goods retailer Hibbett Stores fell 13.7 per cent to $24.70 after it said greater sales of clearance items and higher shipping costs hurt its profit. Its sales fell a bit short of analyst projections.

Fiat Chrysler fell 1.9 per cent to $21.83 after saying it’s recalling 4.8 million vehicles in the U.S. because in rare circumstances drivers may not be able to turn off the cruise control. The company warned owners not to use cruise control until the cars, SUVs and trucks can be fixed with a software update. Drivers can still stop the cars using the brakes.

Overseas, Germany’s DAX rose 0.2 per cent and France’s CAC 40 fell 0.3 per cent. Britain’s FTSE 100 dipped 0.1 per cent. Japan’s benchmark Nikkei 225 index rose 0.1 per cent and South Korea’s Kospi lost 0.2 per cent. Hong Kong’s Hang Seng shed 0.6 per cent.

Reuters and The Associated Press

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 18/03/24 4:00pm EDT.

SymbolName% changeLast
CAE-T
Cae Inc
+0.3%27.06
CNQ-T
Canadian Natural Resources Ltd.
+1.1%99.36
SU-T
Suncor Energy Inc
+0.61%49.16
FL-N
Footlocker Inc
+1.96%22.92
XOM-N
Exxon Mobil Corp
+0.93%112.3
SCVL-Q
Shoe Carnival Inc
-1.99%31.94

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