Canada's main stock index opened lower on Thursday as energy companies were impacted by lower crude prices after the U.S. Federal Reserve dampened hopes of future interest rate cuts.
The S&P/TSX Composite eked forward 3.12 points to begin Thursday’s session at 16,409.68
The Canadian dollar ditched 0.32 cents to 75.5 cents U.S.
Bombardier reported a larger quarterly loss than analysts had expected, and lowered its full-year earnings forecast, as the company wrestled with challenges in its key rail division.
Bombardier descended 38 cents, or 16.5%, to $1.90.
Thomson Reuters raised its sales and core profit outlook for 2019 and 2020 after reporting 4% organic revenue growth in the second quarter, which it said was its best since 2008 and ahead of its expectations.
Thomson Reuters gained $1.50, or 1.7%, to $90.14.
Canadian Natural Resources beat estimates for quarterly profit, as higher prices for Canadian crude helped offset lower production.
Natural Resources shares dropped 80 cents, or 2.4%, to $32.63.
Jefferies raised the target price on Bausch Health Companies to $32.00 from $31.00. Bausch shares accumulated 30 cents, or 1%, to $32.01.
RBC raised the target price on Cargojet to $119.00 from $100.00. Cargojet got lift of $1.80, or 2%, to $92.59.
Canaccord Genuity cut the target price on Painted Pony Energy to $1.60 from $1.75. Painted Pony shares reared 11 cents, or 12%, to 82 cents.
On the economic front, the Markit Purchasing Managers Index registered 50.2 in July, up from 49.2 in June and above the 50.0 no-change value for the first time since March
ON BAYSTREET
The TSX Venture Exchange erased 0.32 points to 591.34
Seven of the 12 Toronto subgroups came out of the blocks in a positive manner, as information technology soared 2.8%, consumer staples prospered 1%, and consumer discretionary stocks bettered themselves by 0.8%
The five laggards were weighed most by energy, down 2.1%, materials, off 0.6%, and industrials, sliding 0.4%.
ON WALLSTREET
Stocks rose on Thursday as investors increased bets on the Federal Reserve cutting rates for a second time later this year.
The Dow Jones Industrials regained 121.51 points – after its sharpest loss since May, to 26,985.45
The S&P 500 recovered 16.6 points to 2,996.98
The NASDAQ added 82.12 points, or 1%, to 8,257.54
GM shares added 98 cents, or 2.4%, to $41.32, on posting favourable quarterly earnings.
Hopes for another rate cut increased after IHS Markit’s U.S. manufacturing PMI dropped to its lowest level since September 2009. IHS said employment in the sector fell to its lowest level since 2013. Muted client demand and a slower increase in production weighed down the manufacturing space.
The Fed cut interest rates by 25 basis points on Wednesday — its first cut in more than a decade — citing “global developments” along with "muted inflation" as reasons for easing monetary conditions.
But Chairman Jerome Powell told reporters in a news conference following the Federal Open Market Committee’s rate decision that the central bank’s rate cut was a “midcycle adjustment,” hinting that further rate cuts later this year were not a sure thing.
Prices for the benchmark 10-year U.S. Treasury gained, lowering yields to 1.99% from Wednesday’s 2.01%. Treasury prices and yields move in opposite directions
Oil prices removed $1.66 to $56.92 U.S. a barrel.
Gold prices faded $18.00 to $1,419.80 U.S. an ounce.
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