Canada's main stock index struggled into the green on Thursday, as the inversion of the country's yield curve by the most in nearly two decades added to worries over slowing global growth.
The S&P/TSX Composite reacquired 6.17 points to begin Thursday at 16,052.11
The Canadian dollar was unchanged at 75.09 cents U.S.
Canopy Growth reported weaker-than-expected quarterly revenue on Wednesday, as the company sold lower volumes of medical cannabis, sending its U.S.-listed shares down 10% in extended trading.
Canopy shares plunged $3.77, or 8.9%, to $38.80.
CIBC raised the target price on Canadian Apartment Properties REIT to $53.00 from $52.00. Units of CAPREIT heightened 94 cents, or 1.9%, to $51.86.
CIBC raised the rating on Freshii Inc. to neutral from underperformer. Freshii shares gained five cents, or 1.9%, to $2.72.
RBC raised the target price on Metro to $55.00 from $52.00. Metro shares gave back a dime to $53.65.
On the economic front, the Canadian Real Estate Association said home sales rose 3.5% in July from the previous month, the fifth consecutive month of higher sales. CREA also said actual sales, not seasonally adjusted, rose 12.6% from a year earlier, while the group’s Home Price Index was up 0.2% from July last year.
ON BAYSTREET
The TSX Venture Exchange dropped 4.55 points to 573.14
Seven of 12 Toronto subgroups gained ground early Thursday, with consumer staples ahead 0.5%, while utilities and real-estate grew 0.4% each.
The five laggards were weighed most by health-care, fizzling 3%, while energy ducked 0.5%, and gold dulled in price 0.4%.
ON WALLSTREET
Stocks rose on Thursday, gaining back some of the steep losses in the previous session, as retail giant Walmart’s strong result and positive economic data helped lift investor sentiment.
The Dow Jones Industrials recovered 66.32 points to open Thursday at 25,545.74
The S&P 500 regained 12.18 points to 2,852.78
The NASDAQ recouped 15.82 points to 7,789.76
Walmart reported better-than-expected earnings and raised its outlook for the year, sending its stock 5.5% higher Thursday.
Cisco shares plunged 6% after it said future earnings would be lighter than expected because of a “significant impact” from the U.S.-China trade war. The tech giant also said China revenue fell 25% last quarter on an annualized basis.
Shares of General Electric dropped more than 5% after Madoff whistleblower Harry Markopolos said he has discovered "an Enronesque business approach that has left GE on the verge of insolvency."
Markets erased earlier losses in the morning after Hua Chunying, a spokesperson at China’s Ministry of Foreign Affairs, said China "hopes the U.S. will meet China halfway and implement the consensus reached by the two leaders during their meeting in Osaka," fueling optimism for a resolution between the two countries.
Also helping the market on Thursday were a slew of economic data that showed a relatively strong U.S. economy. Retail salesrose solidly in July and beat expectations, which is a sign of consumer optimism. The U.S. productivity also grew a healthy 2.3% rate in the second quarter.
Prices for the benchmark 10-year U.S. Treasury gained a small bit of ground, easing yields to 1.57% from Wednesday’s 1.58%. Treasury prices and yields move in opposite directions
Oil prices dipped 40 cents to $54.83 U.S. a barrel.
Gold prices fell 90 cents to $1,526.90 U.S. an ounce.
