Canada's main stock index opened higher on Thursday led by gains in shares of utilities, while worries remained about the interest rate outlook with recent U.S. data signaling a still-tight labour market.
The TSX Composite advanced 45.74 points to kick off Thursday’s session at 19,080.55.
The Canadian dollar dipped 0.03 cents at 72.72 cents U.S.
Suncor Energy on Wednesday said it would acquire French energy firm TotalEnergies' Canadian operations for $1.47 billion to bolster its bitumen production capacity. Shares in Suncor took on 45 cents, or 1%, to $44.23.
First Quantum Minerals said it is willing to revise four points within its proposed contract with the Republic of Panama to regulate its operations in the Central American country. First Quantum shares lost a penny to $29.71 in the first hour of trade.
On the economic slate, Statistics Canada reported that in August, Canada's merchandise exports increased 5.7%, while imports rose 3.8%. As a result, Canada's merchandise trade balance went from a deficit of $437 million in July to a surplus of $718 million in August, the first trade surplus observed since April.
As well, the IVEY PMI for September measured 53.1, compared to 53.5 in August and 52.6 in September 2022.
ON BAYSTREET
The TSX Venture Exchange docked 6.29 points, or 1.2%, to open at 536.89.
All but two of the 12 TSX subgroups were positive soon after the opening bell, with communications up 1.1%, while utilities grew 0.9%, and gold was better by 0.7%.
The two laggards were health-care, sliding 0.7%, and information technology, off 0.3%.
ON WALLSTREET
Stocks fell Thursday as investors were cautious ahead of key jobs data on Friday that could determine the next move for interest rates.
The Dow Jones Industrials skidded 85.43 points, to begin trading Thursday at 33,044.12.
The much-broader index gave back 19.98 points to 4,243.77.
The NASDAQ index subtracted 95.59 points 13,140.42.
The major averages are on pace for another losing week. The Dow is down 0.1% week to date, and turned negative for the year during Tuesday’s selloff. The S&P 500 and NASDAQ are down about 0.2% for the week.
Shares of Clorox slid 4.6% on Thursday, following guidance from the company for its fiscal first quarter that was much lower than consensus. The utilities sector continued its decline, with NextEra Energy falling more than 3%, leading the S&P 500's losses. Charles Schwab, ExxonMobil and Advanced Micro Devices were the following biggest losers, each dropping more than 2%.
Weekly initial jobless claims came in at 207,000 for the week ending Sept. 30, up just 2,000 from the prior week’s numbers. Economists had forecast 210,000, according to a Dow Jones consensus estimate. While the slight increase in jobless claims was about in-line with the Street, it disappointed some investors hoping the weekly data would start to signal a labor market breakdown and end the run in rates that’s hurting stocks.
On Friday, economists polled by Dow Jones argue non-farm payrolls for September will show a 170,000 increase, that would be down from a 187,000 jobs gain in August. While investors aren’t hoping for a recession, they are wishing for some labor market weakness that would cause the Federal Reserve to rethink raising rates again and halt the run in Treasury yields to 16-year highs.
Prices for the 10-year Treasury were static, keeping yields at Wednesday’s 4.73%.
Oil prices retreated 88 cents to $83.34 U.S. a barrel.
Gold prices faded two dollars to $1,832.80.
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