Downward Market Greets Investors Thursday

Calfrac, IMO in Focus

Equities in Canada’s largest market fell at open on Thursday as shares of energy companies were pressured by a decline in oil prices.

The S&P/TSX Composite Index faded 47.54 points to open Thursday at 15,482.36

The Canadian dollar handed back 0.05 cents to 76.7 cents U.S.

Kinder Morgan Canada’s third-quarter profit surged as it recorded a one-time gain of $1.31-billion from the sale of its TransMountain pipeline.

Moreover, CIBC cut the price target on Kinder Morgan to $16 from $17.

Kinder shares lost 27 cents, or 1.6%, to $16.54.

JP Morgan cut the rating on Calfrac Well Services to underweight from neutral. Calfrac gained half a cent to $4.10.

National Bank of Canada raises price target on Imperial Oil to $46.00 from $45.00. IMO shares dipped 46 cents, or 1.1%, to $43.50.

On the economic calendar, Statistics Canada reported that 464,700 Canadians drew regular employment insurance during August. That’s down 7,400, or 1.6%, from the month before.

ON BAYSTREET

The TSX Venture Exchange inched forward 0.7 points to 693.82

Eight of the 12 subgroups were lower in the first hour, with energy toppling 1.2%, materials down 0.6%, and consumer discretionary off 0.4%.

The four gainers were led by health-care, sprouting 2.8%, information technology, improving 0.5%, and real-estate, scraping forward 0.1%.

ON WALLSTREET

Stocks traded lower on Thursday as fears of rising interest rates overshadowed strong corporate earnings.

The Dow Jones Industrials fell 157.86 points at the outset to 25,548.82, led by declines in Caterpillar and Apple.

The S&P 500 slumped 16.23 points to 2,792.95, as energy and industrials lagged.

The NASDAQ was down 64.72 points to 7,577.98

Housing stocks fell as rates rose. Toll Brothers slouched 0.9% and PulteGroup declined 1.4%. They also fell after Bank of America Merrill Lynch downgraded shares of Toll Brothers and PulteGroup, along with NVR, as it reduced its forecast for housing starts.

The stronger yields offset strong corporate earnings results released Thursday. Dow-member Travelers, Bank of New York Mellon, BB&T and Danaher were among the companies that reported better-than-expected earnings before the bell.

Investors came into the earnings season with high hopes. Analysts polled by FactSet expected third-quarter earnings to have grown by 19% on a year-over-year basis. So far, the season is off to a good start. Of the S&P 500 companies that have reported, 84.1% have posted better-than-expected profits.

Prices for the benchmark for the 10-year U.S. Treasury remained pat, keeping yields at Wednesday’s 3.2%.

Oil prices slid 72 cents at $69.03 U.S. a barrel.

Gold prices dipped $1.30 an ounce to $1,226.10