Canada's main stock index fell on Thursday, weighed down by losses in commodity-linked sectors, even as fund manager CI Financial Corp. soared on a minority stake sale in its U.S. wealth management business.
The TSX dumped 133.7 points to move into noon hour Thursday at 20,365.01.
The Canadian dollar plummeted 0.60 cents to 74.14 cents U.S.
CI Financial surged $3.42, or 27.4%, the biggest jump in 29 years, to $15.92, after the fund manager also beat quarterly revenue estimates.
Nutrien cut its annual profit forecast as increased fertilizer prices owed to Western sanctions on Russia and Belarus weighed on demand, sending the company's shares down $4.23, or 5%, to $80.44.
Manulife Financial shed 17 cents to $26.07, after its quarterly profit missed analysts' estimates as the insurer attracted less capital from investors spooked by recent market volatility.
Algonquin Power & Utilities fell back 14 cents, or 1.1%, to $11.80, after the power generator said it would conduct a strategic review of its renewable group.
Absolute Software Corp surged $3.84, or 33.5%, to $15.31, after private-equity firm Crosspoint Capital Partners said it would take the cybersecurity firm private for an equity value of $657 million.
ON BAYSTREET
The TSX Venture Exchange slipped 7.08 points or 1.1%, to 614.69.
The 12 TSX subgroups were evenly divided between losers and gainers, as materials doffed 3.1%, gold was off 2.4%, and health-care fell 2.1%.
The half-dozen gainers were led by consumer staples, up 0.4%, while communications and utilities were each up 0.3%.
ON WALLSTREET
The Dow Jones Industrial Average and S&P 500 fell as Disney shares were under pressure and concerns around regional banks persisted.
The 30-stock index plummeted 238.44 points to 33,292.89, following a lower-than-expected wholesale inflation report and earnings from Disney
The S&P 500 index lost 8.53 points to 4,129.11.
The tech-heavy NASDAQ recovered 27.16 points to 12,333.60.
Disney shares fell more than 8% after the media giant released its fiscal second-quarter results. While higher prices helped its streaming division to narrow its losses, it dealt a harsh blow to subscriber growth. The company also announced it would take on impairment charges of $1.5 billion to $1.8 billion as it removes more content from its streaming platforms.
Investor worry over regional banks once again flared up. PacWest Bancorp, the latest troubled bank in focus, said Thursday in a 10Q filing that deposits fell 9.5% last week. PacWest shares dropped another 22% Thursday. PacWest added that the bank has access to $15 billion in immediate liquidity, if needed.
The producer price index, the Federal Reserve’s preferred inflation gauge that measures wholesale prices, increased just 0.2% in April.
Economists polled by Dow Jones estimated PPI advanced 0.3% last month. The PPI data follows the consumer price index report from Wednesday, which showed inflation rose 4.9% year-over-year, below expectations.
Initial jobless claims grew by 22,000 for the week ending May 6 to 264,000, the Department of Labor said on Thursday. The latest jobless data was the highest reading since Oct. 30, 2021.
Prices for the 10-year Treasury moved forward, lowering yields to 3.38% from Wednesday’s 3.44%. Treasury prices and yields move in opposite directions.
Oil prices stepped back 97 cents to $71.59 U.S. a barrel.
Gold prices sank $14.40 to $2,022.70 U.S. an ounce.
Markets Down as Some Earnings Disappoint
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