Futures pointed to a lower opening for Canada's main stock index on Thursday, as recession worries and rising U.S. crude inventories hurt oil prices.
The S&P/TSX Composite dropped 317.97 points, or 1.9%, to end Wednesday at 16,032.87
The Canadian dollar heightened 0.06 cents to 75.15 cents U.S. early Thursday
September futures skidded 0.4% Thursday.
Canopy Growth reported weaker-than-expected quarterly revenue on Wednesday, as the company sold lower volumes of medical cannabis, sending its U.S.-listed shares down 10% in extended trading.
CIBC raised the target price on CAPREIT to $53.00 from $52.00
CIBC raised the rating on Freshii Inc. to neutral from underperformer
RBC raised the target price to $55.00 from $52.00
On the economic front, the Canadian Real Estate Association announced that MLS sales for July were due out Thursday morning. Details to follow.
ON BAYSTREET
The TSX Venture Exchange lost 9.05 points, or 1.5%, Wednesday to 578.35
ON WALLSTREET
Stock futures posted strong gains ahead of the open Monday following indications that Chinese negotiators were hoping to meet halfway with the U.S. on trade issues.
Futures for the Dow Jones Industrials vaulted 127 points, or 0.5%, to 25,592
Futures for the S&P 500 jumped 15.5 points, or 0.6%, at 2,856.25
NASDAQ futures regained 26.5 points, or 0.4%, to 7,515.25
Stocks’ gains were also helped by Walmart which reported better-than-expected earnings and raised its outlook for the full year. Its stock jumped 6.2% in pre-market Wednesday.
Cisco shares plunged 9% in pre-market trading after it said future earnings would be lighter than expected because of a "significant impact" from the U.S.-China trade war. The tech giant also said China revenue fell 25% last quarter on an annualized basis.
Thursday’s session follows the Dow’s worst day of the year on Wednesday amid a recession signal from the bond market. The stock market took a huge hit in the previous session with the Dow plunging 800 points in its fourth-largest point drop ever to a two-month low. The Dow’s 3% drop was the worst this year. The S&P 500 also fell nearly 3%.
Markets turned higher in a sudden move after Hua Chunying, spokesperson at China’s Ministry of Foreign Affairs, said China “hopes the U.S. will meet China halfway and implement the consensus reached by the two leaders during their meeting in Osaka.”
Overseas, in Japan, the Nikkei 225 dropped 1.2% Wednesday, while in the Hong Kong, the Hang Seng index gained 0.8%
Oil prices slipped 52 cents to $54.71 U.S. a barrel.
Gold prices skidded $2.90 to $1,524.90 U.S. an ounce.
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