TSX Suffers Heavy Losses After Open

Denison, Lundin in Focus

Equities in Canada’s largest centre opened lower on Thursday, weighed down by energy stocks as oil prices slumped, while downbeat earnings from pot producer Aphria Inc further dented sentiment.

The TSX capsized 150.29 points to begin Thursday at 16,305.11.

The Canadian dollar fell 0.49 cents to 75.55 cents U.S.

Brookfield Asset Management reportedly plans to launch an initial public offering for its $1.4-billion Australian coal export terminal next week.

Brookfield shares doffed 54 cents, or 1.2%, to $44.18.

TD Securities raises the rating on Denison Mines to speculative buy from hold. Denison shares inched up half a cent, or 1.1%, to 45.5 cents.

Goldman Sachs initiated coverage of Lundin Mining with a buy rating and price target of $11.00. Lundin shares climbed 14 cents, or 1.8%, to $7.80.

CIBC cut the rating on Transalta Renewables to neutral from outperform. Transalta shares retreated 20 cents, or 1.1%, to $17.66.

On the economic slate, the Canadian Real Estate Association stood by Thursday with MLS home sales for September,

ON BAYSTREET

The TSX Venture Exchange lost 5.38 points to 728.76.

All 12 TSX subgroups were lower in the first hour, with energy tumbling 2%, consumer discretionary stocks flailing 1.6%, and materials off 1.1%.

ON WALLSTREET

U.S. stocks fell on Thursday, on pace for a third day of losses, as the outlook for a coronavirus stimulus deal remained uncertain.

The Dow Jones Industrial Average stumbled 253.27 points to kick off Thursday to 28,260.73.

The S&P 500 fell 24.27 points to 3,464.10.

The NASDAQ handed over 98.49 points to 11,670.24.

Third-quarter earnings are continuing to roll out. Morgan Stanley reported third quarter profit of $1.66 per share, exceeding the $1.28 estimate of analysts. It generated revenue of $11.7 billion on the back of strong trading, a billion dollars more than the estimate. Shares of Morgan Stanley were flat.

Walgreens also posted a better-than-expected fourth-quarter profit, helped by higher sales at U.S. pharmacies. The drugstore chain said it expects profit to grow in single digits in 2021. Shares of Walgreens popped 4%.

Banking giants Goldman Sachs, Wells Fargo and Bank of America reported their latest quarterly results on Wednesday along with United Airlines. Goldman and Bank of America’s results topped analyst expectations. However, Wells Fargo and United fell short of estimates.

Investors are waiting for any sign a coronavirus aid deal is still possible. Treasury Secretary Steven Mnuchin told the media that he and President Donald Trump are committed to getting a stimulus deal done and that while it will be hard to get one done before the election, they will keep trying.

Worse-than-expected jobless claims also weighed on sentiment. The Labor Department said Thursday 898,000 new claims were filed for jobless benefits in the prior week, higher than a Dow Jones estimate of 830,000.

Prices for the 10-Year Treasury were higher, weighing yields to 0.72% from Wednesday’s 0.73%. Treasury prices and yields move in opposite directions.

Oil prices were down $1.39 at $39.65 U.S. a barrel.

Gold prices fell back $4.80 to $1,902.50