Canada's main stock index fell on Thursday, as an early rally among oil and gas names quickly lost steam and trading moves mirrored equity losses on Wall Street.
The S&P/TSX composite index jettisoned 134.75 points, or 1%, to stagger into noon hour at 13,172.21
The Canadian dollar gained 0.43 cents at 75.56 cents U.S.
Valeant Pharmaceuticals International shares, which have been badly bruised over the last week and a half due to accusations of drug price gouging, was the biggest drag on the index, sinking 3.1% to $230.77. The overall healthcare group, however, eked out a win (see below).
Potash Corp shares followed, stumbling 3.5% to $26.46, while the overall materials group, home to resource and mining firms, retreated.
Energy stocks swung between positive and negative territory throughout morning trading. Imperial Oil Ltd fell 1.4% to $41.69 while Encana Corp rallied 3.4% to $8.88.
In corporate news, Bombardier Inc shares fell 3.6% to $1.61 after the struggling plane and train maker said it was exploring the sale of a stake in any of its business units, not just rail, to ensure it can finish its much delayed CSeries jet.
SNC Lavalin Group stock was up 2.1% to $38.78. The engineering and construction company settled with the African Development Bank Group after allegations that former employees had ordered illicit payments to secure contracts for projects in the region.
ON BAYSTREET
The TSX Venture Exchange picked up 1.33 points to 525.91
All but one of the 13 TSX subgroups were midday, as materials sank 2.4%, gold dulled in price 2.2%., and consumer staples lost 1.5%.
Only health-care held out against the negative tide, moving higher 0.6%.
ON WALLSTREET
U.S. stocks traded mostly lower Thursday, the first day of trade for the fourth quarter, as investors weighed declines in Apple and biotech stocks amid key domestic economic reports.
The Dow Jones industrial average thundered lower 188.17 points, or 1.2%, to 16,095.93. Apple – which lost 2% -- and IBM were the greatest weights on the index.
The S&P 500 lost 14.82 points to 1,905.21, following losses in crude and a negative turn in brent.
The NASDAQ index ducked lower 48.18 points, or 1%, to 4,571.98.
General Motors, Ford Motor, and the U.S. operations of Fiat Chrysler Automobiles reported a jump in September sales as cheap gasoline and ultra-low interest rates drove demand for sport utility vehicles and pickup trucks.
On the data front, September ISM manufacturing data fell to the lowest level since May 2013 at 50.2 from 51.1.
The monthly non-farm payrolls report is due Friday.
The number of announced layoffs by U.S.-based companies surged 43% in September from the previous month, driven by job cuts at Hewlett-Packard, global outplacement firm Challenger, Gray & Christmas reported Thursday.
Moreover, initial stateside jobless claims showed a slight increase to 277,000. The September U.S. Markit manufacturing PMI came in at 53.1.
August construction spending rose to its highest level since 2008, driven by residential projects.
Prices for 10-year U.S. Treasuries gained slightly, lowering yields to 2.02% from Wednesday’s 2.04%. Treasury price and yields move in opposite directions.
Oil prices progressed 23 cents a barrel to $45.32 U.S.
Gold prices jumped 44 cents to $1,115.53 U.S. an ounce.
