Another day of uncertainty greeted investors Thursday, what with not only the troubles in Europe and the impending U.S. fiscal cliff, but renewed violence in the Middle East and a shakeup at the top in China.
The S&P/TSX Composite Index staggered another 108.44 points, to kick off Thursday at 11,829.79, after Wednesday’s 200-point-plus loss.
The Canadian dollar recovered 0.21 cents to 99.84 cents U.S.
Auto parts maker Linamar Corp. reported a 57% increase in quarterly earnings on Wednesday as stronger demand in the U.S. offset weakness in Europe. Linamar shares began the day at $21.50, down 17 cents from Wednesday’s close.
Chinese fertilizer maker Migao Corp. reported a second-quarter. Migao shares shed five cents, or 2.2%, to $2.20
On the economic calendar, figures released this morning by Statistics Canada showed manufacturing sales advanced 0.4% to $49.8 billion in September. The gain reflected higher production in the aerospace product and parts industry and increased sales of primary metals.
The nation’s number crunchers said sales hiked in eight of 21 industries, representing just under half of Canadian manufacturing. They added sales of durable goods jumped 1.1% to $25.8 billion, while non-durable goods sales decreased 0.4% to $24.0 billion.
What’s more, the Canadian Real Estate Association (CREA) revealed that national home sales activity and average price were little changed last month. CREA stated that home sales settled 0.1% from September to October, with actual (not seasonally adjusted) activity down 0.8% from October 2011. The MLS® Home Price Index boosted 3.6% in October – making for its smallest gain since May 2011.
ON BAYSTREET
The TSX Venture Exchange staggered 12.21 points to 1,246.48
All but one of the 14 Toronto subgroups were negative to begin Thursday. Gold tumbled another 2.2%, while materials slumbered 2% and the metals and mining doffed 1.7%.
The lone gainer was information technology, clicking 0.2% higher.
ON WALLSTREET
Stocks traded mixed Thursday, as investors weighed a bigger-than-expected jump in jobless claims and turmoil overseas.
The Dow Jones Industrials inched higher by 14.17 points to 12,585.10
The S&P 500 fell 0.68 points to 1,354.81, and the Nasdaq Composite Index eked up 2.81 points to 2,849.62
China's ruling Communist Party named its next seven leaders, the euro-zone officially entered a double-dip recession, and Israel launched a series of blistering air strikes Wednesday on what it said were terrorist targets in Gaza.
The euro-zone officially slipped into recession in the third quarter, as official figures showed growth among the 17 euro countries shrinking 0.1%. It's the second recession in the area since 2009.
But above all else in the United States, fiscal cliff fears remain a heightened concern for market participants.
President Obama met with CEOs Wednesday to discuss the fiscal cliff and is scheduled to meet with Congressional leaders Friday.
BP said it was close to signing a deal with the U.S. government to resolve criminal claims from the 2010 Deepwater Horizon disaster in the Gulf of Mexico.
Wal-Mart shares slid 4%, after the retail giant's revenue fell short of forecasts, and the company cited currency fluctuations and "economic conditions," as negative factors impacting its sales.
Target shares rose slightly, after the retailer reported earnings in line with forecasts, but missed revenue forecasts.
Economically speaking, the report on initial jobless claims showed the lingering effects of Superstorm Sandy in the Northeast: 439,000 people filed for their first week of unemployment benefits last week. That was much higher than the forecast of 388,000 in jobless claims and it is the highest jobless claims tally since the last week of April, 2011.
Meanwhile, the Consumer Price Index showed that inflation remained tame in October, ticking up 0.1% during the month, as expected.
The Federal Reserve Bank of Philadelphia's monthly manufacturing survey showed a drop in activity. Analysts had predicted that November manufacturing would stay flat.
Around 1:20 p.m. ET, Federal Reserve Chairman Ben Bernanke is due to deliver remarks on the housing market at an event in Atlanta.
The price on the benchmark 10-year U.S. Treasury slid a bit, raising yields to 1.60% from the 1.59% level at which it closed both Tuesday and Wednesday. Treasury prices and yields move in opposite directions.
Oil prices gained 37 cents to $86.63 U.S. a barrel.
Gold prices subtracted $9.60 an ounce to $1,720.70 U.S.
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