The TSX narrowed early losses by Thursday’s closing, helped by the recovery in utility stocks. But weaker industrial and mining shares remain a drag on the benchmark index.
The S&P/TSX composite index came to within 3.5 points of breakeven to end the session at 15,106.97
The Canadian dollar rallied 0.13 cents – after dipping almost half a cent earlier in the day -- to 80.43 cents U.S.
Industrials got pounded on the day, as Newalta Corporation lost 66 cents, of 4.3%, to $14.70, while Canadian Pacific got knocked $8.97, or 4.1%, to $208.80.
Sentiments were also dampened by concerns about the future of Canada's six largest banks. Despite recent hikes in dividend at CIBC, National Bank, and BMO, investors still question how the six lenders will fare in the future if borrowing rates rise.
Commerce shares gained 61 cents, or 0.6% to $95.63, National shares eased eight cents to $49.28, and BMO shares dropped 85 cents, or 1.1%, to $77.05. Royal Bank of Canada shares were up nine cents to $80.03
Among energy issues, Imperial Oil shares acquired five cents to $48.77
On the positive side, utilities gained as Fortis Inc. picked up 53 cents, or 1.4%, to $38.09.
Gold stocks proved the richest on the day, and Carpathian Gold the most actively traded stock, gaining one cent, or 66.7% to 2.5 cents, on 14.1 million shares.
On the economic slate, Statistics Canada said its Industrial Product Price Index declined 0.9% in April, mainly because of lower prices for energy and petroleum products.
The agency’s Raw Materials Price Index increased 3.8% in the same month, largely as a result of higher prices for crude energy products.
Gross Domestic Product figures for March are due Friday.
ON BAYSTREET
The TSX Venture Exchange gained 1.54 points to 692.16
Eight of the 14 Toronto subgroups were negative on the day, with industrials slipping 1.6%, global base metals off 1.1%, and metals and mining off 0.7%.
The half-dozen gainers were led by gold, up 1.1%, while materials and utilities each climbed 0.6%.
ON WALLSTREET
U.S. stocks closed Thursday's trading session lower as a lack of resolution on Greece debt talks and declining transports weighed on investor sentiment.
The Dow Jones Industrials dropped 36.87 points to end the day at 18.126.12, with Caterpillar leading laggards and Intel and DuPont the greatest advancers. Thursday's session also marked the fourth time in six sessions where blue chips closed down.
The S&P 500 index slumped 2.67 points to 2,120.81, with industrials and energy leading decliners and materials leading three advancers.
The NASDAQ retreated 8.62 points from Wednesday’s all-time high to 5,097.98
Among transports that took the biggest knocks, airline giants Delta Air Lines and American Airlines have seen their stock drop by about 6% and about 13%, respectively.
Companies reporting on Thursday included Abercrombie & Fitch.
Avago Technologies will buy chip maker Broadcom for $37 billion U.S. in cash and stock, consisting of $54.50 U.S. in cash and 0.4378 Avago shares for each share of Broadcom.
Costco reported quarterly earnings of $1.17 U.S. per share, two cents above estimates, though revenue and comparable store sales were below forecasts. The warehouse retailer was hurt by lower gasoline prices and a stronger dollar.
Abercrombie lost 53 cents U.S. per share for its latest quarter, wider than the 34-cent U.S. consensus estimate. Revenue missed forecasts amid an 8% drop in comparable store sales. The apparel retailer did say it sees sales improving, and that it will see continued headwinds from foreign currency fluctuations.
Futures were little changed after weekly initial jobless claims came in at 282,000, up slightly from last week's 274,000 read.
Pending home sales rose 3.4% in April, to their highest levels in nine years.
In China, stocks plunged 6.5% on Thursday, with traders citing the tightening of marginal lending rules as an explanation. Despite the selloff, the Shanghai Composite is still up more than 40% year-to-date.
Regarding Greece, IMF Managing Director Christine Lagarde told a German newspaper that a Greek exit from the euro zone was possible but that this would probably not herald the end of the euro currency.
She said such a step would "not be a walk in the park" but would "probably not" mean the end of the euro. European equities closed flat to lower on Thursday.
Prices for 10-year U.S. Treasuries gained back some lost strength, lowering yields to Wednesday’s 2.13%. Treasury prices and yields move in opposite directions.
Oil prices picked up 34 cents a barrel to $57.85 U.S.
Gold prices regained $2.30 to $1,188.80 U.S. an ounce.
