Equity markets in Toronto endured a lower open on Thursday, after closing flat in the previous session, as lack of clarity about the U.S. Federal Reserve's monetary stimulus program kept inventors on edge.
The S&P/TSX composite index was down 54.09 points to begin Thursday at 12,585.21
The Canadian dollar gave back 0.07 cents to 96.65 cents U.S.
Canadian media outlets reported that Verizon Communications has decided to put off the acquisition of two small Canadian wireless companies until after a government auction of wireless licenses in January.
NBF cut the rating on AgJunction Inc. to underperform from sector perform on expected headwinds well into FY 2014. AgJunction shares were unchanged at 98 cents.
NBF also upped the target price on Boyd Group Income Fund to $28 from $25 as the company recorded a strong performance in the second quarter. Boyd units tacked on two cents to $25.26.
Moreover, NBF hiked the price target on High Arctic Energy Services to $2.75 from $2.50, says the company's dividend appears rock solid and balance sheet is in excellent shape. High Arctic shares faded seven cents to $2.63.
Finally, NBF raised the target price on Paladin Labs to $69 from $57 to reflect a strong second-quarter, recent corporate developments and a positive outlook. Paladin shares slid $1.48 to $60.52.
On the economic front, figures released by the Canadian Real Estate Association showed national home sales edged up 0.2% from June to July. Actual (not seasonally adjusted) activity came in 9.4% above levels in July 2012. The number of newly listed homes edged down 0.4% from June to July.
ON BAYSTREET
The TSX Venture Exchange slumped 2.59 points to 923.56
All but two of the 14 Toronto subgroups were lower to start Thursday, weighed mostly by health-care, sicker by 1.5%, while global base metals and industrials shed 1.2% each.
The two stalwarts proved to be telecoms, galloping 3.9%, and gold, eking up 0.1%.
ON WALLSTREET
U.S. stocks tumbled Thursday morning on some disappointing corporate earnings news from Wal-Mart Stores and Cisco.
The Dow Jones Industrial Average jettisoned 213.18 points, or 1.4%, to begin the session at 15,124.50
The S&P 500 index was down 22.13 points to 1,663.26. The NASDAQ shed 62.29 points to 3,606.98
Wal-Mart Stores reported disappointing second-quarter U.S. sales early Thursday. Another retailer, Kohl's, reported that its second-quarter sales rose, but profit fell and the retailer lowered its earnings forecast for the full year.
Those results come on the heels of news from Cisco that sent shares plunging. The network equipment maker revealed plans to cut 4,000 jobs, citing difficult economic conditions.
In other corporate news, J.C. Penney shares rose after investment manager George Soros revealed the size of his stake in the embattled retailer.
Economically speaking, the U.S. government said jobless claims dropped by more than expected to 320,000, a decrease of 15,000 from the previous week's revised figure. The U.S. Labor Department said the consumer price index rose 0.2%, in line with expectations. CPI is a key gauge of inflation.
Investors continue to look for more clues on when the Federal Reserve will start to tighten monetary policy.
Prices for the 10-year U.S. Treasury were unchanged, keeping yields at Wednesday’s 2.71%.
Oil prices leaped 59 cents to $107.44 U.S. a barrel.
Gold prices slipped $5.90 to $1,327.50 U.S. an ounce.
