The Toronto stock market was lower Thursday afternoon, depressed by earnings reports and sliding energy stocks.
The S&P/TSX composite index took a header of 110.37 points to conclude Thursday at 14,546.03.
The Canadian dollar spiked 0.64 cents at 92.39 cents U.S.
On the corporate front, Scotiabank is buying a 20% stake in Canadian Tire's financial services business for $500 million in cash as part of a strategic partnership. Scotiabank shares rose 15 cents to $66.71 while Canadian Tire slumped 16 cents to $107.69.
At the same time, Canadian Tire posted net income attributable to shareholders of $70.6 million, or 88 cents per share, down from $73 million, or 90 cents a share a year ago, which was five cents below analysts' forecasts. Revenue met expectations, rising 3.8% to $2.57 billion.
Valeant Pharmaceuticals International posted a quarterly net loss of $23 million or seven cents a share, compared with a loss of $27.5 million, or nine cents per share, a year ago. On a cash earnings per share basis, adjusted income was $600 million or $1.76 per diluted share, an increase of 35% over the prior year and four cents ahead of estimates.
Revenues jumped 77% to $1.9 billion, up from $1.06 billion year-over-year and its shares fell $2.99 to $142.07.
Telus Corp. was ahead 40 cents to $39.85 as the telecom reported a first-quarter net profit up 4.1% from a year ago at $377 million or 61 cents per share, which met expectations.
Revenue was up 5% to $2.9 billion and exceeded expectations of $2.87 billion. Telus is also raising its dividend to 38 cents per share, an 11.8% increase year-over-year.
Auto parts giant Magna International reported quarterly net income attributable to the company was $393 million and diluted earnings per share were $1.76, far below the $2.05 that analysts had expected. Sales were up 7% to $8.96 billion and its shares dropped $1.20 to $106.15.
Investors were also encouraged Thursday by China's April trade data that showed an improvement in exports. Exports rose 0.9% from the previous year, compared with a 6.6% decline in March. Imports also grew after a contraction in March but at a subdued level.
The base metals sector advanced amid the positive economic news from China. Teck Resources gained 15 cents to $24.43.
On the economic beat, Statistics Canada reported this morning that its New Housing Price Index rose 0.2% in March, following an identical increase in February.
Elsewhere, Canada Mortgage and Housing Corporation reported that there were 17,124 housing starts in April, making for a seasonally-adjusted annual rate of 194,809 units in April, an increase from 156,592 in March.
ON BAYSTREET
The TSX Venture Exchange faltered 9.05 points to 991.99
Nine of the 14 Toronto subgroups had gone negative by the closing bell, as energy slid 2.8%, health-care was 1.8% less hale, and information technology drifted lower 1.4%.
The four gainers were led by metals and mining, up 1.2%, telecoms, better by 0.4%, and consumer discretionaries, inching up 0.1%.
ON WALLSTREET
The Dow hovered around the breakeven line Thursday after being up over 90 points earlier in the day. The S&P 500 and NASDAQ then flipped negative.
The Dow Jones Industrial Average remained positive 32.42 points to close at 16,550.97
The S&P 500 erased 2.58 points to 1,875.63, and the NASDAQ composite index subtracted 16.17 points to 4,051.50
The markets cheered Janet Yellen earlier in the trading session when the U.S. Federal Reserve chair reiterated her commitment to keep interest rates low until the economy is on firmer footing. She made her comments when appearing before the Senate Budget Committee.
It was more or less an encore of her remarks yesterday to the Joint Economic Committee of Congress.
The other story on Wall Street is the ongoing pressure on so-called momentum stocks, especially tech. The NASDAQ peaked in March and has been mostly headed lower since.
Shares of Tesla were down 10% in volatile trading Thursday. The company's earnings beat expectations Wednesday, but Tesla forecast that expenses will continue to rise as it expands into China, develops its next vehicle and breaks ground on a new factory.
However, the sun is still shining for SolarCity, the company in which he serves as chairman.
The solar panel maker surged 14% after it beat earnings estimates and subsequently received a series of analyst upgrades.
The Keurig Green Mountain coffee machine is on overdrive. Shares spiked over 11% after the company posted double-digit sales and earnings growth for the first quarter. The company also announced the expansion of its partnership with the J.M. Smucker Company.
The deal makes Smucker's coffee brands such as Folgers available in Keurig products and brewing systems.
Other popular stocks popping today include 21st Century Fox, which rose 5% after its earnings beat analyst forecasts. The company experienced a bump in revenue from its cable network programming. It's the parent company of Fox and Sky TV.
Tiffany& Co shares had some extra glow today after the luxury retailer got a "buy" rating from Bank of America Merrill Lynch.
Dish Network dropped Thursday. The company reported lower profit for the first quarter and said television subscribers were added at a slower pace than the same period last year.
Barclays rose 8% London trading after the bank said it would cut 19,000 jobs over the next three years.
Prices for 10-year U.S. Treasuries slipped, raising yields to 2.60% from Wednesday’s 2.59%. Treasury prices and yields move in opposite directions
Oil prices demurred 51 cents to $100.26 U.S. a barrel.
Gold prices eked up 30 cents to $1,289.20 U.S. an ounce.
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