A four-day rally by Canada's main stock index stalled on Thursday, ahead of the release of minutes of the U.S. Federal Reserve's September meeting, with weak commodity prices putting some pressure on resource stocks and offsetting broad gains across other sectors.
The S&P/TSX composite index clawed its way higher 9.2 points to greet noon at 13,877.55
The Canadian dollar advanced 0.22 cents at 76.81 cents U.S.
Suncor Energy Inc pulled the most weight on the positive side, rising 1.3% to $35.90. Energy stocks were fairly mixed, however, with other big names offsetting the gains. Enbridge Inc declined 1.4% to $55.11.
The heavily weighted financial stocks were up moderately, led by Brookfield Asset Management's 1.1% gain to $43.18.
Canadian National Railway, which had its price target raised by at least one analyst, was another major positive gainer, advancing 1% to $79.16.
First Quantum Minerals fell 7.5% to $8.19, while the overall materials group slid, hurt in part by a slide in gold, silver and copper prices.
The always-influential Valeant Pharmaceuticals International also dipped modestly, but was still among the biggest drags offsetting some of the index's gains. The drug company was down 0.7% at $220.39, while the overall healthcare group lost 2%.
On the economic front, Statistics Canada’s new housing price index rose 0.3% in August, largely a result of higher new home prices in Ontario.
Also, Canada Mortgage and Housing Corporation noted that housing starts in Canada totaled 202,506 units in September compared to 195,804 in August.
ON BAYSTREET
The TSX Venture Exchange added 1.43 points to 544.11.
Seven of the 13 TSX subgroups were downward, most notably metals and mining, off 2.7%, health-care, skidding 2.5%, and materials, 0.6% to the bad.
The half-dozen gainers were led by energy, up 0.9%, telecoms, ahead 0.7% and industrials, up 0.6%.
ON WALLSTREET
U.S. stocks traded mixed Thursday as investors awaited the afternoon release of the Fed minutes and the beginning of earnings season in the coming weeks.
The Dow Jones industrial average moved into positive territory by noon, picking up 27.06 points to 16,939.95, with IBM and Nike contributing the most to gains.
The S&P 500 slid 1.84 points to 1,993.99, which approached the psychologically key 2,000 level. Materials proved the greatest advancers.
The NASDAQ index drooped 34 points to 4,757.15
On the earnings front, Domino's Pizza reported results that missed on both the top and bottom line. Alcoa, Helen of Troy and Ruby Tuesday are all due after the bell.
The Federal Open Market Committee's September meeting minutes are scheduled for release at 2:00 p.m. ET.
Although the minutes won't reflect the central bank's view on last Friday's weaker-than-expected non-farm payrolls report, analysts said they will be watching to see how much the Fed was concerned about conditions overseas, particularly in China.
Many market analysts expected the Federal Reserve to raise short-term interest rates for the first time in nearly a decade at its September meeting. The central bank's decision to hold off on a hike caused great uncertainty in markets about the Fed's view on domestic and global economic conditions.
In a light day of economic reports, weekly jobless claims declined to 263,000, a near 42-year low.
Prices for 10-year U.S. Treasuries were down, raising yields to 2.08% from Wednesday’s 2.06%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.02 a barrel to $48.83 U.S.
Gold prices faded $1.24 to $1,144.30 U.S. an ounce.
