Equities in Canada’s biggest centre fell a second day on Thursday amid concern that a U.S. Federal Reserve interest-rate increase as early as next month could further burden a struggling global economy. The closing bell, however, saw stocks recover from triple-digit losses to within spitting distance of breakeven.
The S&P/TSX Composite Index was only 8.69 points below Wednesday’s closing figure to finish at 13,817.32
The Canadian dollar slid 0.41 cents to 76.32 cents U.S.
Canadian Natural Resources Ltd. declined 57 cents, or 1.5%, to $37.44, to lead a retreat in energy producers.
Russel Metals Inc. tumbled $1.89, or 8%, to $21.86 after Raymond James lowered its rating for the steel distributor to the equivalent of a hold, from outperform. Russel has rallied 38% this year. The stock now has zero buys, four holds and one sell, according to data compiled by Bloomberg.
Potash Corp. of Saskatchewan Inc. climbed 89 cents, or 4.3%, to $21.79. A potash contract with China is expected in the next couple of weeks, according to the company’s CEO. Moreover, potash prices have stabilized in the U.S. and the company is seeing improvements in prices.
Among gold issues, Yamana Gold climbed 26 cents, or 4.3%, to $6.25, while Barrick Gold jumped 82 cents, or 3.6%, to $23.76.
On the economic slate, Statistics Canada reported that wholesale sales declined for a second consecutive month in March, down 1.0% to $54.6 billion. Lower sales were recorded in five of seven sub-sectors, led by the motor vehicle and parts sub-sector and the miscellaneous sub-sector
What’s more, in March, 545,700 people received regular Employment Insurance benefits, fewer by 2,400, or 0.4%, from the month before. The number has changed very little since last fall.
ON BAYSTREET
The TSX Venture Exchange gained 3.98 points to 678.23
Eight of the 13 TSX subgroups remained negative on the day, as industrials trailed Wednesday’s close by 0.8%, while real-estate and financials each suffered 0.6%.
The five gainers were propelled by gold, better by 2.1%, materials, up 1.8%, and metals and mining, progressing 1.6%.
ON WALLSTREET
Equities south of the border closed lower Thursday after comments from New York Fed President William Dudley and the latest Federal Reserve minutes increased prospects of a rate hike as soon as June.
The Dow Jones Industrials faded 91.22 points to 17,435.40. Wal-Mart traded more than 9.5% higher to contribute the most to gains, while Goldman Sachs had the greatest negative impact, giving up most of its gains from Wednesday.
The S&P 500 lost 7.73 points to 2,039.90, with industrials leading six sectors lower and utilities the top gainer.
The NASDAQ Composite dipped 26.59 points to 4,712.53
As of afternoon trade, the S&P 500 was about 0.2% lower for the year so far, while the Dow was 0.2% higher. The NASDAQ was more than 5% lower year-to-date.
Shares of Wal-Mart rose after better-than-expected quarterly results. The retailer also reported a 1% increase in U.S. same-store sales, topping estimates of a half percent increase.
In Thursday's economic news, weekly jobless claims declined to 278,000, after three weeks of increases. The May Philly Fed index showed minus 1.8.
Prices for the 10-year Treasury were unchanged, maintaining yields at Wednesday’s 1.85%.
Oil prices shed three cents a barrel to $48.16 U.S.
Gold prices dumped $4.41 to $1,254.09 U.S. an ounce.
