Markets in Canada’s largest centre felt around for the bruises in morning trading on Thursday as the country's heavyweight energy and mining sectors lost ground amid a drop in commodity prices and as investors digested a string of corporate earnings.
The S&P/TSX Composite Index plummeted 137.21 points to greet noon at 15,405.93
The Canadian dollar nosed ahead 0.02 cents at 72.85 cents U.S.
Among energy issues, Canadian Natural Resources fell 3.8% to $41.61 after reporting a first-quarter profit, compared with a loss a year earlier.
TransCanada Corp fell 1% to $63.34 after saying it would sell stakes in two pipelines for $765 million.
Teck Resources Ltd lost 6% to $25.03 after Deutsche Bank lowered its price target in the stock, while Hudbay Minerals fell 8.7% to $7.15 after reporting an unexpected quarterly loss.
Manulife Financial rose 1.6% $24.52 after Canada's biggest life insurer reported first-quarter earnings that exceeded expectations with strong sales in Asia.
Canadian Imperial Bank of Commerce fell 1.2% to $107.81 after it raised its offer for PrivateBancorp.
Home Capital Group Inc fell 1.2% to $6.76 after the DBRS ratings agency downgraded the stock, following two downgrades last month, as it reviewed the alternative mortgage lender's ongoing viability.
Among consumer staples, Empire Company, parent of Sobeys grocery chain, was up 1.7% at $20.78 after announcing a restructuring plan it says would deliver $500 million of savings a year by 2020.
In the economic docket, Statistics Canada reported Thursday morning that Canada’s international merchandise trade balance with the world posted a $135-million deficit in March. Exports rose 3.8% while imports were up 1.7%.
ON BAYSTREET
The TSX Venture Exchange jettisoned 11.94 points, or 1.5%, to 781.50
All but two of 12 TSX subgroups were negative midday, mostly on the back of materials, slumping 2.7%, while gold and energy slouched 2.6% each.
The two gainers were health-care, haler 1%, while information technology raised itself only 0.3%.
ON WALLSTREET
Energy stocks dropped more than 1.5% Thursday, capping gains in the broader market ahead of a Congress vote on health care.
The Dow Jones Industrial Average fell 17.17 points to 20.940.73, with Caterpillar and Chevron contributing the most losses.
The S&P 500 inched up 1.59 points to 2,389.72
The NASDAQ nicked ahead 4.74 points to 6,077.29
Earnings season continued, as social media giant Facebook topped estimates for both profit and revenue, as did Chesapeake Energy and Church & Dwight, among others.
Companies headed into this earnings season with high expectations and most have managed to meet them. More than 70% of the S&P 500 companies that have reported have topped their bottom-line estimates while more than 60% have beat on sales.
Wall Street also set its sights on Washington, as the House of Representatives voting on a controversial health care bill that would repeal and replace key components of Obamacare.
The GOP-led House scrapped a previous attempt at repealing and replacing Obamacare in March, raising concerns about when the government would tackle tax reform.
The health-care sector was among the best performers on Thursday, rising 0.5% ahead of the vote.
Investors also pored over a slew of economic data on Thursday. Jobless claims fell by 19,000 to 238,000, while productivity for the first quarter fell more than expected. The U.S. trade deficit, meanwhile, narrowed to $43.7 billion. Factory orders were due mid-morning.
These data releases culminate on Friday, with the U.S. government posting its monthly payrolls report. Economists expect the U.S. economy to have added 185,000 jobs last month versus 98,000 in March. Factory orders, meanwhile, rose less than expected in March.
Prices for the benchmark 10-year Treasury note fell, raising yields to 2.36% from Wednesday’s 2.32%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.38 at $46.44 U.S. a barrel
Gold prices slumped $19.30 at $1,229.20 U.S. an ounce.
Related Stories
