The Toronto stock market pulled back on Thursday, with gold and mining stocks leading the decline, alongside a decision by the European Central Bank to keep its key policy rate unchanged.
The S&P/TSX composite index greeted noon on Thursday down 69.08 points to 14,390.03
The Canadian dollar demurred 0.02 cents at 90.61 cents U.S.
Toronto's main stock index has been on a tear, rising nearly 6% since the start of the year and near levels that haven't been seen since the summer of 2008. However, questions have persisted over whether the S&P/TSX Composite is headed toward a ceiling.
In corporate developments, Fortis Inc., one of Canada's largest utility companies, have received approval from U.S. regulators for its $4.3-billion purchase of UNS Energy Corp., an Arizona-based electricity and gas utility company, expanding its reach in the United States. Fortis shares were down two cents to $31.46.
Retailer Hudson's Bay Co. says the acquisition of U.S. luxury retailer Saks helped sales increase nearly 75% in the fourth quarter, while its profits dropped about 66 per cent, to $29.1 million from $86.8 million a year ago. Shares of the company backed off 96 cents to $17.86.
Montreal-based clothing retailer Reitmans (Canada) Ltd. posted a deeper net loss of $2.57 million in its fourth quarter, or four cents per diluted share, compared to a loss of $1.14 million, or two cents, in the same period a year earlier. Sales were $240.68 million versus $267.66 million a year earlier. Reitman shares rose 26 cents to $6.22.
In the economic docket, Statistics Canada reported this morning that this country’s merchandise exports grew 3.6% and imports were up 2.1% in February. As a result, our trade balance with the world swung from a deficit of $337 million in January to a surplus of $290 million in February.
ON BAYSTREET
The TSX Venture Exchange backtracked 2.66 points to 1,003.63
All but three of the 14 Toronto subgroups were lower by noon, with health-care and telecom stocks each sliding 1.2%, and gold dipping 0.9%.
The three gainers were information technology, up 0.7%, energy, inching ahead 0.2%, and consumer staples, breaking even by 0.03%.
ON WALLSTREET
Stocks hit new milestones shortly after the markets opened before pulling back.
The Dow Jones Industrial Average stepped back into negative country by 7.09 points to 16,565.91. The S&P 500 lost 2.47 to register at 1,888.43. The NASDAQ stumbled 25.22 points to 4,251.24
On Wednesday, the S&P 500 closed at a new high, its eighth of the year. But the question remains as to whether this momentum will continue.
In corporate news, newly issued Google shares started trading Thursday as a result of the tech giant's long-anticipated 2-for-1 stock split. The new class C shares, which trade under the original "GOOG," symbol and have no voting rights, rose in morning trading. Old Google class A shares, which retained their voting rights and trade under the new symbol, "GOOGL," were also up.
Shares of both classes of Google began trading at around $570 U.S. – or roughly half the value of Wednesday's closing price, but the A shares are trading slightly higher, as expected.
Barnes and Noble plunged almost 10% after one of its largest shareholders, Liberty Media Corporation, announced that is reducing its stake in the struggling book seller. Barnes and Noble has bounced back over 30% this year after being one of the worst performers in the S&P 500 in 2013.
Shares of Pandora popped after the internet radio service released figures showing notable jumps in its number of active listeners in March. The number of hours listened for the month also rose.
Netflix continued its slide Thursday. After a huge run, shares of the entertainment site have pulled back about 20% in the past month as the company faces growing concerns about its high valuation and increasing competition.
Yelp shares ticked downward after falling more than 5% Wednesday after the Wall Street Journal reported that the review site receives around six subpoenas each month, often relating to business owners suing the company.
Investors are also getting ready for Friday's March jobs report. They'll get another readout on the labour market Thursday when the U.S. Labor Department reports the latest figures on jobless claims.
As widely expected, the ECB said it will keep its key interest rate unchanged at 0.25%. But the central bank is facing growing pressure to do more to stimulate the euro-zone economy as risks of deflation rise and the euro remains strong.
ECB President Mario Draghi tried to use words to calm the markets. He affirmed in a press conference the bank's commitment to keep inflation at a healthy level, but he didn't announce any new measures to prop up the economy.
Prices for 10-year U.S. Treasuries were higher by noon, lowering yields to 2.78% from Wednesday’s 2.80%. Treasury prices and yields move in opposite directions.
Oil prices gained eight cents to $99.70 U.S. a barrel.
Gold prices slipped $3.70 to $1,287.10 U.S. an ounce.
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