Equities in Canada’s largest centre opened lower on Thursday, with fear over a rise in the number of coronavirus cases weighing on sentiment even as U.S. weekly jobless claims indicated signs of an economic recovery.
The S&P/TSX Composite Index dropped 5.7 points to begin Thursday at 15,422.99.
The Canadian dollar docked 0.05 cents at 73.67 cents U.S.
Enbridge said on Wednesday about 800 employees have opted for voluntary buyouts, as the company tries to reduce costs to tackle the COVID-19 crisis and the global oil price shock. Shares in the energy giant took on a dime to $42.88.
Canaccord Genuity raised the target price on Precision Drilling to $1.25 from $0.90. Precision shares gained four cents, or 3.9%, to $1.06.
National Bank of Canada raised the target price on Richelieu Hardware to $30.00 from $27.00. Richelieu shares attached seven cents to $27.92.
Canaccord Genuity raised the target price on Secure Energy Services to $2.00 from $1.50. Secure shares docked a penny to $1.81.
On the economic beat, Statistics Canada reported that, as the effect of the COVID-19 pandemic continued to spread throughout the economy, wholesale sales plummeted 21.6% to $49.8 billion in April, the lowest level since July 2013.
The agency’s new housing price index edged up 0.1% at the national level in May following no change in April.
ON BAYSTREET
The TSX Venture Exchange fell 0.3 points to 559.49.
Seven of the 12 TSX subgroups were lower in the first hour, with financials and communications each down 0.5%, and health-care off 0.4%.
The five gainers were led by information technology, up 0.7%, gold, ahead 0.4%, and energy, better by 0.3%.
ON WALLSTREET
Stocks fell for a second day on Thursday as investors weigh the rising number of coronavirus cases in the U.S. and around the world along with disappointing unemployment data.
The Dow Jones Industrials decreased 41.99 points to 26,077.62.
The S&P 500 edged higher 0.36 points to 3,113.85.
The NASDAQ gained 26.57 points to 9,937.10.
While the market remained choppy, major stock averages are set to post solid gains this week after a sharp pullback in the week prior. The 30-stock Dow and the S&P 500 have gained more than 2% each this week so far, while the NASDAQ has risen about 3.3%.
Airlines, retailers and cruise lines led the early declines. United Airlines fell by 2.8%. Delta descended 1.9% and American dropped 3%. Nordstrom and Kohl’s both slid more than 1%. Carnival let go of 4.2%, Norwegian Cruise Line shed 4.2%, and Royal Caribbean traded lower by 1.3%.
Several states in the U.S. are experiencing a resurgence of infections. Arizona reported a record-high number of new confirmed cases, while Texas saw an 11% daily spike in hospitalizations for patients with COVID-19 on Wednesday.
In China, the country’s capital city has reportedly closed schools and canceled flights to contain the latest wave of coronavirus cases.
However, a disease expert in China announced the latest outbreak of coronavirus cases in Beijing had been brought under control.
Initial U.S. weekly jobless claims rose more than expected last week, coming in at 1.508 million. Economists polled by Dow Jones expected a print of 1.3 million.
Prices for the 10-Year Treasury gained, lowering yields to 0.70% from Wednesday’s 0.73%. Treasury prices and yields move in opposite directions.
Oil prices eked up two cents to $37.98 U.S. a barrel.
Gold prices faded $8.60 to $1,727.00 U.S. an ounce.
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