Equities in Canada’s largest market fell on Thursday, as a Moody’s downgrade of major Canadian banks struck financial stocks, and frequent-flyer points operator Aimia Inc plunged on news its program would be dropped by the country’s largest airline.
The S&P/TSX Composite Index retreated 44.87 points to greet noon at 15,588.34
The Canadian dollar fell 0.08 cents to 73.04 cents U.S.
Financial stocks dropped after Moody's Investor Service cut the long-term ratings for Canada's six biggest banks, citing a more challenging operating environment.
Canadian Imperial Bank of Commerce fell 1.4% to $107.25, while National Bank of Canada declined 1.3% to $53.44.
Enbridge, was by far the most influential mover on the downside, however, sliding 2.1% to $54.75 after it reported a lower-than-expected quarterly profit.
Shares in Air Canada, the country's dominant carrier, jumped 6.4% to $15.84 after announcing it would start its own frequent-flyer program to replace Aeroplan, operated by Aimia.
Aimia stock sank 58% to $3.75 on the news.
The consumer discretionary group, which Aimia falls under, fell, but the sector's losses were offset by a 4.8% jump to $61.17 by Magna International, after the auto parts maker posted a quarterly profit that beat estimates.
On the economic scene, Statistics Canada reported that its new housing price index rose 0.2% in March compared with the previous month. Higher new house prices in Vancouver and Toronto led the gain.
ON BAYSTREET
The TSX Venture Exchange acquired 4.87 points to 788.11
Seven of the 12 TSX subgroups had turned lower by midday, with real-estate and financials each tailing off 0.7%, while consumer staples dipped 0.6%.
The five gainers were led by gold, shining 2.8% brighter, health-care, haler by 2.4%, and materials, up 1.4%.
ON WALLSTREET
U.S. equities traded lower on Thursday as retail stocks fell sharply on the back of Macy's weak quarterly results.
The Dow Jones Industrials Average came off morning losses to trade lower by 52.66 points to 20.890.45, with Home Depot contributing the most losses
The S&P 500 inched faded 9.18 points to 2,390.45, with Macy's, Nordstrom and Kohl's dragging the index lower.
The NASDAQ hesitated 26.49 points to 6,102.65,
Macy’s posted adjusted earnings of 24 cents per share and revenue of $5.34 billion. Analysts expected the firm to report earnings per share of 35 cents on sales of $5.47 billion.
The retailer's stock has been under pressure all year. Entering Thursday's session, it was down 18.1%
Social media company Snap also reported quarterly results, marking the first time doing so since going public. Snapchat's parent company reported sales of $150 million, with experts estimating a loss of 20 cents a share.
In economic news, the producer price index rose 0.5% in April, more than the expected increase of 0.2%. Initial jobless claims, meanwhile, totaled 236,000, below the expected 245,000.
Prices for the benchmark 10-year Treasury note enjoyed slight gains, lowering yields to 2.4% from Wednesday’s 2.41%. Treasury prices and yields move in opposite directions.
Oil prices jumped 66 cents at $47.99 U.S. a barrel
Gold prices picked up $4.70 at $1,223.60 U.S. an ounce.
