The excitement of a relief rally on Wednesday following the interest rate hike by the U.S. Federal Reserve quickly dissipated on both sides of the border Thursday, as gold and other miners took a dive.
The S&P/TSX composite index jettisoned 156.15 points, or 1.2%, to finish Thursday’s session at 13,009.93
The Canadian dollar lost 0.85 cents to 71.69 cents U.S.
Energy concerns were hard hit, primarily Encana, which dipped 35 cents, or 4.8%, to $6.96, while TransCanada Corp. shed $1.61, or 3.3%, to $46.56.
Gold issues, however, took the biggest knocks, as Barrick Gold slumped 84 cents, or 8%, to $9.69. Metals and mining issues fell hard, too, particularly, Teck Resources, which stumbled 31 cents, or 6.7%, to $4.33.
On the economic front, Statistics Canada reported that those Canadians drawing employment insurance benefits dipped 3,300, or 0.6%, in October from the month before, to 539,700
On a year-over-year basis, the agency says the total number of EI beneficiaries was up 40,900, or 8.2%.
ON BAYSTREET
The TSX Venture Exchange let go of 1.26 points to 496.95
Nine of the 13 TSX subgroups were lower on the day. Gold dulled in price 5.7%, materials retreated 3.7%, and metals and mining lost 3.2%
The four gainers were led by industrials, ahead 0.4%, while utilities and real-estate each acquired 0.3%.
ON WALLSTREET
Equities south of the border closed lower Thursday as investors eyed oil prices and economic data, after the U.S. Federal Reserve on Wednesday made the widely expected move of raising rates.
The Dow Jones industrial average plummeted 253.25 points, or 1.4%, to 17,495.84. Goldman Sachs, IBM and Caterpillar were among the greatest weights on the index.
The S&P 500 dropped 27.66 points, or 1.3%, to 2,045.51. Energy briefly fell 2% to lead nearly all S&P 500 sectors lower in afternoon trade. Only utilities tried for gains.
The NASDAQ index erased 68.58 points, or 1.4%, to 5,036.90.
Newmont Mining and Freeport-McMoRan led decliners in materials. Copper also declined.
General Mills saw revenue drop in all its retail categories, but the food producer did say the results were in line with its expectations.
Accenture missed on earnings but beat on revenue due to growth at its consulting business.
FedEx posted earnings that topped on both the top and bottom line. The delivery firm attributed the upward swing to larger profit margins and lower costs, among other factors.
Oracle beat on earnings but missed on earnings, under pressure from the strong dollar. The business software company gave lower-than-expected numbers for the current quarter as it continues its transition from traditional software to a cloud-based subscription model.
Apple announced Thursday that Jeff Williams has been named chief operating officer. Williams joined the company in 1998 and has overseen the company's entire supply chain since 2010.
In economic news, initial jobless claims came in at 271,000. The Philly Fed index for December was minus 5.9, the lowest of the year after a positive 1.9 print in November.
Leading indicators for November showed a 0.4% rise.
The U.S. Commerce Department reported that the country’s current account deficit in the third quarter increased 11.7% to $124.1 billion U.S, its highest level in nearly seven years, as a strong dollar weighed on exports and the profits of multi-national corporations.
Prices for the 10-year Treasury gained ground, lowering yields to 2.23% from Wednesday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices doffed 64 cents a barrel to $34.88 U.S.
Gold prices dropped $20.96 to $1,051.36 U.S. an ounce.
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