Stocks in Toronto started Thursday on a downward note, as commodities were trading flat amid worries over the euro-zone financial situation, with Cyprus struggling to arrive at an alternative proposal to taxing bank deposits.
The S&P TSX index dumped 50.72 points to commence the session at 12,775.83
The Canadian dollar improved 0.07 cents to 97.56 cents U.S.
Yogawear retailer Lululemon Athletica Inc said it expected its earnings to fall in the current quarter, hurt by a recall of stretchy pants announced on Monday. Lululemon stock climbed 80 cents to $66.17.
Enbridge Inc.’s U.S. unit said on Wednesday the costs of additional cleanup from a huge Michigan oil spill three years ago may push the total bill past the limit of its insurance coverage, hampering its financial results. Enbridge shares slid 22 cents to $46.85.
On the economic slate, Statistics Canada reported this morning that retail sales rose 1.0% to $38.9 billion in January, partially offsetting the decline in December, led by higher sales at motor vehicle and parts dealers.
What’s more, those of us receiving regular Employment Insurance benefits fell in January for the third consecutive month, down 8,500, or 1.6%, to 531,100. Compared with the previous January, the number of beneficiaries was down 8.8%.
ON BAYSTREET
The TSX Venture Exchange slid 1.20 points to 1,104.77
All but four of the 14 Toronto subgroups lost ground in the early going. Financials dipped 0.9%, metals and mining stocks were off 0.8%, and industrials trailed Wednesday’s close by 0.7%.
The three gainers were gold, up 1.1%, materials, up 0.3%, and consumer staples, inching ahead 0.1%. Utilities were unchanged in the first hour of trading.
ON WALLSTREET
U.S. stocks opened lower Thursday, as investors considered a big batch of economic news and uncertainty over Cyprus.
The Dow Jones Industrials staggered 89.76 points early Thursday to 14,422.
The S&P 500 index was 7.46 points lower to 1,551.25. The tech-heavy NASDAQ Composite dropped 28.86 points to 3,225.33.
Investors mulled over the latest readings on initial jobless claims and awaited reports on existing home sales and the Philly Fed's monthly business outlook.
Just days after recalling see-through yoga pants, lululemon athletic reported earnings and sales that squeaked past estimates and said it was working closely with manufacturers to resolve the yoga pant issue. The company also said its current quarter and full year earnings would come in below analysts' forecasts.
KB Hom shares edged higher after the homebuilder reported that sales surged 59% in the first quarter, as more homes were delivered and prices increased.
Shares of Oracle sank a day after the tech giant reported quarterly earnings that missed expectations.
While Cyprus continues to heat up, investors have become less concerned about contagion spreading to other financial markets. Early Thursday, the European Central Bank told the troubled nation it had until Monday to sort itself out or face the consequences of a potential financial collapse and/or exit from the euro.
Economically speaking, jobless claims totaled 336,000 last week, according to the U.S. Department of Labor. That's up 2,000 from the prior week, but less than the 345,000 claims forecast by Briefing.com consensus.
Prices on the 10-year U.S. Treasury inched up, lowering yields to 1.93% from Wednesday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil prices dropped 72 cents to $92.78 U.S. a barrel.
Gold prices tacked on $3.80 to $1,611.30 U.S. an ounce.
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