Toronto's stock index opened lower on Thursday as commodity prices fell on weak Chinese and euro zone manufacturing data sparked concerns about slowing global economic growth.
The S&P/TSX Composite Index lost 68.01 points in the first hour of trading at 12,368.48.
The Canadian dollar stumbled 0.77 cents at 100.02 cents U.S.
Among stocks to watch today, yogawear retailer Lululemon Athletica Inc. reported a surge in quarterly profit as sales in established stores jumped 26%
The federal government says Air Canada is obliged by law to keep operations going at facilities that service its planes in the Canadian cities of Winnipeg, Mississauga and Montreal.
Separately, the company said on Wednesday it has identified "qualified and government approved" facilities in Canada and the United States to replace Aveos Fleet Performance Inc, which has performed much of Air Canada's heavy maintenance work.
Surge Energy Inc. posted much higher quarterly funds from operations, helped in part by higher production and increased drilling activity at its Alberta operations.
Royalty and metal streaming whiz Franco-Nevada Corp. recorded a higher quarterly loss, hurt by impairment charges at two mines.
On the economic beat, Statistics Canada reported that those drawing regular Employment Insurance benefits increased by 12,400, or 2.3% to 561,100 in January. This increase returned the number of beneficiaries to roughly the same level as in June 2011. Eight provinces saw hikes, the largest in Quebec.
The agency also said retail sales rose 0.5% in January, a fifth increase in six months, propped up mostly by sales at motor vehicle and parts dealers
ON BAYSTREET
The TSX Venture Exchange lost 16.90 points to 1,560.70, while the Nasdaq Canada index inched up 0.22 to 415.09
In all, 10 of the 14 Toronto subgroups began the day lower. Metals and mining slipped 1.6%, global base metals were off 1.5%, and energy stocks were 1.1% to the bad.
The three gainers were led by information technology, up 0.7%. Utilities edged up 0.2%, and consumer staples were better by 0.1%. Telecoms were flat at the outset.
ON WALLSTREET
In New York, stocks dropped in morning trading Thursday as investors were rattled by worries of a global growth slowdown. Both China and Germany reported soft manufacturing data.
The Dow Jones Industrials shed 68.96 points soon after the opening bell to 13,055.60.
The S&P 500 gave back 6.97 points to 1,395.92, while the Nasdaq subtracted 17.68 points to 3,057.64
Signs of a continued resurgence of employment in the United States couldn't help investors shake the funk. The number of Americans filing for unemployment hit a new four-year low.
Still, traders say volumes have been abnormally low this week, indicating that investors don't have strong convictions about the direction of the market.
Dollar General shares popped after the retailer reported earnings of 85 cents U.S. per share on
$4.2 billion U.S. in revenue, topping projections. The company said same-store sales increased 6.5% over the quarter.
FedEx shares dropped despite reporting better-than-expected earnings and sales, citing record holiday shipping. The company, seen as a proxy for the health of the broader economy, said it expects its 'solid performance' to continue.
ConAgra reported earnings of 51 cents U.S. per share on $3.4 billion U.S. in revenue, slightly better than analysts had expected. Shares dropped slightly.
Athletic apparel maker lululemon athletica reported that revenue surged 51.4% to $371.5 million U.S. in the fourth quarter, topping analyst estimates. But shares dropped almost 2%, because the company lowered guidance.
McDonald's said Wednesday that CEO Jim Skinner plans to retire at the end of June, ending a seven-year turn at the helm of the fast-food restaurateur. The company's current president and COO, Don Thompson, will succeed Skinner.
Early Thursday, a reading on Chinese manufacturing compiled by HSBC showed the index hit a four-month low in March. The new reading came in at 48.1, down from 49.6 in February.
A reading below 50 indicates the sector is contracting, and HSBC said that a significant drop in new orders acted as the primary drag on manufacturing. Reflecting a broader slowdown, China lowered its growth target and hiked gasoline prices in recent weeks.
A reading on manufacturing activity in Germany showed the euro-zone stalwart also hit a soft patch in March, as the sector registered only a marginal expansion.
In matters economic, the U.S. government reported that first-time claims for unemployment benefits in the week ended March 17 dropped to 348,000, a four-year low and a better number than analysts had expected.
The Conference Board's Leading Indicators Index for February was expected to increase by 0.6%.
The price on the benchmark 10-year U.S. Treasury gained ground, pushing the yield lower to 2.26% from 2.29% Wednesday. Treasury prices and yields move in opposite directions.
Oil for May delivery dumped $2.33 to $104.94 U.S. a barrel.
Gold futures for April delivery fell $18.20 to $1,631.10 U.S. an ounce.
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