The Toronto stock market was sharply lower Thursday with the main index giving up the solid gains of the previous session as another dose of negative news from Europe's biggest economy kept concerns elevated about the global economy.
The S&P/TSX composite index 156.79 points, or 1.1%, to greet midday at 14,509.68, after rising 90 points Wednesday, in the wake of reassurance from the U.S. Federal Reserve that it is in no rush to raise interest rates.
The Canadian dollar moved lower 0.33 cents at 89.69 cents U.S.
Canadian Tire Corp. plans to invest an average of $575 million annually over the next three years on business improvements, with money going to new digital technology as well as expansions and upgrades to its store network.
The retailer also intends to buy back an additional $400 million of its class A non-voting shares by the end of 2015. Its shares rose $2.67, or 2.3%, to a 52-week high of $119.75.
The base metals component lost ground even as December copper gained three cents to $3.03 U.S. a pound. Teck Resources slid $1.13, or 5.9%, to $18.20
The gold sector lost ground while Barrick Gold subsided 59 cents to $15.35 and Goldcorp surrendered 94 cents, or 3.5%, to $26.27
On the economic slate, Statistics Canada said its new housing price index rose 0.3% in August, following no change in July. The increase was the largest since January and mainly the result of strong gains in Ontario and Alberta.
ON BAYSTREET
The TSX Venture Exchange ducked back 3.20 points to 845.47.
All but one of the 14 Toronto subgroups were lower, with gold tanking 3.8%, metals and mining down 3.3%, and materials skidding 2.7%.
Only real-estate stocks moved higher by noon ET, and only 0.2% at that.
ON WALLSTREET
U.S. stocks fell Thursday, giving up most of the prior day’s big jump, which was the largest one-day advance of the year.
The Dow Jones Industrials lost 243.62 points, or 1.4%, to 16,750.60, after yesterday’s gain of more than 270 points.
The S&P 500 retreated 27.56 points to 1,941.33. The NASDAQ index dipped 58.07 points to 4,410.52.
PepsiCo Inc. shares rose 0.5%, with the beverage and snack giant reporting third-quarter profit and sales results that beat expectations.
Alcoa Inc. shares fell 2.8% in regular trading after the aluminum producer’s third-quarter earnings came in higher than Wall Street’s estimate.
Apple Inc. suppliers have delayed plans to mass produce a larger-screen tablet to early next year, according to a Wall Street Journal report. Carl Icahn’s promised letter to Apple arrived before the opening bell, as well; it was titled "Sale: Apple Shares at Half Price." Apple shares gained 0.9%.
Google Inc.’s tax deal in France is being challenged, according to a Wall Street Journal report. Shares fell 1.7%.
Market reaction to the weekly jobless claims ahead of the bell was muted. U.S. government data showed the number of people applying for unemployment benefits was below 300,000 for the fourth week in a row.
Investors will hear speeches from several Federal Reserve officials Thursday, a day after investors sent stocks soaring as minutes released from the central bank’s September meeting appeared to quell any lingering fears that interest rates might be dialed up in a hurry.
Prices for 10-year U.S. Treasuries fell, raising yields to Wednesday’s 2.33%. Treasury prices and yields move in opposite directions.
Oil prices docked $1.06 to $86.25 U.S. a barrel.
Gold prices surged $18.60 to $1,224.60 U.S. an ounce.
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