Equities in Canada’s biggest centre fell on Thursday, weighed down by resource and financial stocks, while a slew of mostly upbeat corporate earnings tempered declines.
The S&P/TSX Composite Index stayed negative 41.55 points to greet noon at 16,063.80
The Canadian dollar gained 0.44 cents to 78.79 cents U.S.
TransCanada Corp was among the most influential losers on the index, falling 1% to $61.33 despite reporting revenue that topped estimates.
Tourmaline Oil jumped 8.6% to $27.05 after reporting third-quarter results, while Cameco Corp rallied 5.2% to $12.10 following news it will suspend production from its McArthur River mine and Key Lake mill.
Magna International fell 2.2% to $66.39 after warning that part of its transmission business could soften over the next couple of years.
Tempering losses in the category was Manulife Financial Corp’s 2.4% rise to $27.00 after the company late on Wednesday reported quarterly results that beat estimates. The stock was by far the most influential gainer on the TSX.
The materials group, which includes precious and base metals miners and fertilizer companies, lost ground as First Quantum Minerals fell 2.9% to $16.04, while Pan Am Silver shed 8.9% to $18.53 following weaker-than-forecast quarterly results.
Luxury apparel maker Canada Goose Holdings Inc surged 10.9% to $30.66 after reporting quarterly earnings that exceeded analysts’ forecasts.
Canadian Tire Corp Ltd rose 3.3% to $162.68 after reporting a rise in quarterly retail sales.
On the economic docket, Statistics Canada reported that new house prices in Canada rose 0.2% in September, largely reflecting increases in Kelowna and Vancouver, each improving less than 1%. Builders tied the rise to improved market conditions.
ON BAYSTREET
The TSX Venture Exchange lost 3.54 points midday to 791.25
Meantime, the 12 TSX subgroups were split down the middle, as telecoms gained 0.5%, with real-estate and consumer staples each advancing 0.4%.
The half-dozen laggards were weighed most by materials and information technology, each declining 0.8%, and utilities, off 0.5%.
ON WALLSTREET
U.S. equities fell on Thursday, pulling back from record highs, on worries that tax reform could be delayed until 2019.
The Dow Jones industrial average hurtled earthward 212.46 points to 23,350.90, with McDonald's as the biggest decliner, falling 2.2%.
The S&P 500 declined 23.02 points to 2,571.29, with information technology falling 1.4%, as the leading decliner.
Tech is by far the best-performing sector in the S&P 500 this year. The sector is up 37% in 2017, boosted by strong earnings from companies in the space.
The NASDAQ Composite eased 83.53 points, or 1.2%, to 6,705.08,
The Washington Post reported that a Senate Republican plan could push tax reform back to 2019.
Later on Thursday, Disney, Nvidia, and News Corp. will release their quarterly results. Media stocks have been in the spotlight recently as talks about deal making pick up. Earlier this week, media reported that 21st Century Fox has been in talks to sell most of its company to Disney. As for chip maker Nvidia, its stock has been on fire this year, rising 95%.
Earnings have been mostly strong this season. According to FactSet, 73% of S&P 500 companies that have reported have surpassed earnings expectations.
On the data front, weekly U.S. jobless claims totaled 239,000 last week, above the expected 232,000. Wholesale trade numbers were also due later on.
Prices for the benchmark 10-year Treasury note gained ground, lowering yields to 2.32% from Wednesday’s 2.33%. Treasury prices and yields move in opposite directions.
Oil prices surged 44 cents a barrel to $57.25 U.S.
Gold prices gained $3.40 an ounce to $1,287.10 U.S.
