Equities in Toronto took fairly sizable losses on Thursday, as weakness in energy and other resource stocks overrode gains in tech and consumer staples.
The S&P/TSX Composite Index plummeted 146.44 points to finish Thursday at 15,396.70
The Canadian dollar continued on its downward path, erasing 0.14 cents at 72.68 cents U.S.
Among energy issues, Canadian Natural Resources fell $1.82, or 4.2%, to $41.43 after reporting a first-quarter profit, compared with a loss a year earlier. Cenovus Energy saw its shares pounded 65 cents, or 4.9%, to $12.67
Teck Resources Ltd lost $1.69, or 6.3%, to $24.95 after Deutsche Bank lowered its price target in the stock, while Hudbay Minerals fell 42 cents, or 5.4%, to $7.41 after reporting an unexpected quarterly loss.
In the gold sector, Barrick Gold staggered 23 cents, or 1%, to $22.01, while Goldcorp backtracked 15 cents to $18.40.
Tech stocks provided one of the bright lights on a dismal day, as BlackBerry crept higher two cents to $12.72, while Constellation Software galloped $26.29, or 4%, to $686.39.
Home Capital Group Inc fell 83 cents, or 12.1% to $6.01 after the DBRS ratings agency downgraded the stock, following two downgrades last month, as it reviewed the alternative mortgage lender's ongoing viability.
Among consumer staples, Empire Company, parent of Sobeys grocery chain, was up 86 cents, or 4.2%, at $21.29 after announcing a restructuring plan it says would deliver $500 million of savings a year by 2020.
In the economic docket, Statistics Canada reported Thursday morning that Canada’s international merchandise trade balance with the world posted a $135-million deficit in March. Exports rose 3.8% while imports were up 1.7%.
ON BAYSTREET
The TSX Venture Exchange jettisoned 19.37 points, or 2.4%, to 774.07
All but three of 12 TSX subgroups were negative on the day, with energy failing 3%, materials lurching lower 2.4%, and gold, dulling in price 2.3%.
The three gainers were information technology, vaulting 1.1%, consumer staples, up 0.3%, and consumer discretionary stocks, ahead 0.1%.
ON WALLSTREET
Equities closed mostly flat on Thursday as energy stocks put a lid on the broader market.
The Dow Jones Industrial Average fell 17.17 points to 20.940.73, with Caterpillar and Chevron contributing the most losses.
The S&P 500 inched up 1.59 points to 2,389.72, with energy leading seven sectors lower and consumer staples the best performer.
The NASDAQ nicked ahead 4.74 points to 6,077.29
Meanwhile, earnings season continued, as social media giant Facebook topped estimates for both profit and revenue, as did Chesapeake Energy and Church & Dwight, among others.
Energy is also one of the biggest contributors to first-quarter earnings growth. One analyst said that earnings growth including energy totals more than 14% and drops to about 7% when energy is excluded.
Companies headed into this earnings season with high expectations and most have managed to meet them. More than 70% of the S&P 500 companies that have reported have topped their bottom-line estimates while more than 60% have beat on sales.
Investors also digested the House of Representatives' vote to pass a bill aimed at repealing and replacing Obamacare.
The House passed the bill by a vote of 217 to 213 after months of struggling to win enough support to move it forward.
The GOP-led House scrapped a previous attempt at repealing and replacing Obamacare in March, raising concerns about when the government would tackle tax reform.
Investors also pored over a slew of economic data on Thursday. Jobless claims fell by 19,000 to 238,000, while productivity for the first quarter fell more than expected. The U.S. trade deficit, meanwhile, narrowed to $43.7 billion. Factory orders were due mid-morning.
These data releases culminate on Friday, with the U.S. government posting its monthly payrolls report. Economists expect the U.S. economy to have added 185,000 jobs last month versus 98,000 in March. Factory orders, meanwhile, rose less than expected in March.
Prices for the benchmark 10-year Treasury note fell, raising yields to 2.35% from Wednesday’s 2.32%. Treasury prices and yields move in opposite directions.
Oil prices dropped $2.37 at $45.45 U.S. a barrel
Gold prices slumped $19.90 at $1,228.60 U.S. an ounce.
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