Stocks in Canada’s biggest market were in the red Thursday following global central bank action to boost flagging economic growth.
The S&P/TSX Composite Index plummeted 96.96 points to end the day at 11,816.91
The Canadian dollar slipped 0.10 cents at 98.59 cents U.S.
Shares of commodities producers headed in both directions, with NovaGold Resources slipping 21 cents, or 3.5%, to $5.80, SouthGobi Resources adding 20 cents, or 4.2%, to $4.95, and Sacre-Coeur Minerals faring even better, up half a cent, or 5.6%, to 9.5 cents.
Calfrac Well Services Ltd. shares fell 60 cents, or 2.6%, to $22.40. GHS Research lowered its earnings estimates for the company due to early warnings for second-quarter results by pressure pumping competitors.
The TSX health-care sector slid, with a leading decliner being SXC Health Solutions Corp., whose shares fell $7.93, or 7.5%, to $97.82.
In corporate news, plane and train manufacturer Bombardier announced Thursday a technology licence agreement with CSR Puzhen, a subsidiary of China South Locomotive & Rolling Stock Corporation Ltd. Class B shares of Bombardier added 10 cents, or 2.4%, to $4.22.
ON BAYSTREET
The TSX Venture Exchange gave back 15.45 points to 1,226.45. The Nasdaq Canada index dipped 0.33 points to 359.32.
All but four of the 14 Toronto subgroups were lower, weighed mostly by energy’s 1.4% fall. Gold and health-care stocks each lost 1%.
The four gainers were led by consumer staples and utilities, each ahead 0.2%, and telecoms, up 0.1%.
ON WALLSTREET
U.S. stocks pared earlier losses, as investors grew hopeful that interest rate cuts from China and Europe, along with tepid U.S. economic data, could bring more meaningful central bank action.
The Dow Jones Industrials eased 47.15 points to close at 12,896.70. Markets were shuttered Wednesday for Independence Day.
The S&P 500 demurred 6.26 points to 1,367.76. The Nasdaq Composite Index recovered 0.04 points, however, to 2,976.12.
Several large retailers reported mixed results for sales in June. Retailers battled high unemployment, falling consumer confidence and warm weather purchases that were made earlier than usual this year.
Of the retailers tracked by Thomson Reuters, 18 are expected to report a 2.4% gain in June same-store sales -- far less than the 7.7% gain from a year earlier.
Costco Wholesale Corp, Macy's Inc, Kohl's Corp and Target Corp all reported disappointing June sales.
But it wasn't all bad news -- off-price retailers reported good numbers. TJX Cos Inc, which runs the discount chain T.J. Maxx, and Ross Stores Inc. reported some of the largest gains, as shoppers looked for bargains on higher-end clothes and home goods.
Financial stocks were among the worst performers. Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and JPMorgan Chase were all down in afternoon trading.
Today, the European Central Bank lowered its key interest rate by a quarter percentage point to 0.75%.
Thursday has been a big day for central bank intervention, with the Bank of England increasing asset purchases by £50 billion ($78.1 billion U.S.) and the People's Bank of China also cut several key interest rates for the second time in less than a month. China's central bank brought its lending rate down by 0.31 percentage point to 6%.
Meanwhile, Spain sold €3 billion ($3.8 billion U.S.) in three- and 10-year bonds Thursday -- the first auction since last week's euro-zone summit. Yields on the 10-year bond moved up to 6.54% but stayed below peak levels hit in June.
Economically speaking, three reports released on Thursday suggested a pick up in the U.S. labour market.
Fewer companies announced plans to lay off workers, and private businesses said they're hiring more people in June. Meanwhile, claims for unemployment benefits fell during the last week of the month.
About 374,000 people filed for first-time unemployment benefits last week, 14,000 fewer than the week before, the U.S. Labor Department reported.
Companies also announced fewer layoffs in June, according to data collected by Challenger, Gray & Christmas, Inc. Employers announced 37,551 planned job cuts, the lowest number in 13 months, the report said.
And even more good news, a report released by payroll-processing company ADP beat expectations and showed that private businesses added 176,000 jobs in June, a significant improvement over the month before. The ADP report typically foreshadows the department's jobs report, which will come out Friday.
What’s more, the non-manufacturing index dipped to 52.1 in June, according to the Institute of Supply Management's monthly report -- down from 53.7 in May and below expectations. Even so, it’s somewhat cheerful news, given that any reading above 50 indicates expansion.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.60% from 1.63% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for August delivery unloaded 73 cents to $86.93 U.S. a barrel.
Gold futures for August delivery settled down $12.40 to $1,609.40 U.S. an ounce.
