The Toronto stock market was lower for a second day as a U.S. budget deal and a solid retail sales report fuelled expectations that the U.S. Federal Reserve could start cutting back on its monetary stimulus program as early as next week.
The S&P/TSX composite index fell another 29.06 points to greet noon hour ET at 13,104.36
The Canadian dollar ditched 0.47 to 93.97 cents U.S.
Gold stocks suffered, with the TSX Global Gold sector down about 50% for the year.
That sector was down Thursday morning with Kinross Gold down five cents to $4.80.
Iamgold Corp. said that it is suspending its dividend effective immediately, citing the need to preserve cash in the face of falling prices for bullion and its stock fell 31 cents, or 7.6%, to $3.76.
The base metals sector lost ground while March copper was unchanged at $3.29 U.S. a pound. Teck Resources fell 48 cents to $24.19.
Canadian utility Fortis is buying power provider UNS Energy Corp. for $2.5 billion, expanding its business into Arizona. Fortis will also assume $1.8 billion in debt.
UNS Energy, which is headquartered in Tucson, Ariz., provides electricity and natural gas services to more than 650,000 customers in the state through its two subsidiaries. Fortis shares fell $1.53 to $29.66.
Financials were also weak with Scotiabank down 41 cents to $62.77.
Air Canada is buying 61 Boeing 737s as it replaces its older Airbus and Embraer narrow body aircraft. The deal has a face value of about $6.5 billion U.S. Air Canada says it could expand the order to as many as 109 of Boeing's 737 MAX planes as it replaces its older Airbus and Embraer narrow body aircraft. Air Canada stock slipped four cents to $7.64.
American Airlines has signed a firm deal to purchase 30 of Bombardier's CRJ900 NextGen aircraft and options for 40 more planes. The value of the contract is about $1.42 billion U.S. at list prices but could rise to $3.38 billion U.S. if the options are converted into firm orders. Bombardier was off four cents to $7.64.
On the economic front, Statistics Canada’s new housing price index came in for October up 0.1%, following no change in September.
ON BAYSTREET
The TSX Venture Exchange fell 9.86 points to 887.17
All but four of the 14 subgroups were lower, with utilities down 2%, telecoms sliding 1.2%, and gold suffering 1%.
The four gainers were led upward by industrials, up 0.5%, while energy and health-care issues each gathered 0.2%.
ON WALLSTREET
Stocks fell Thursday as investors watched some high-profile initial public offerings and looked for clues as to when the Federal Reserve will wind down its bond buying program.
The Dow Jones Industrials shed 101.50 points to 15,742.03
The S&P 500 index dropped 6.63 points to 1,775.59. The NASDAQ sank 3.02 points to 4,000.79
Stocks often enjoy a nice rally in December but after a record-breaking run for the Dow and S&P 500, the so-called Santa Claus rally has yet to materialize. The S&P 500 has fallen 1.5% so far this month.
Hilton Worldwide popped 7% once it began trading on New York Stock Exchange. The hotel chain raised $2.4 billion through an initial public offering.
Food services company Aramark also went public, raising $725 million U.S. Shares jumped over 6%.
Shares of Lululemon tanked more than 10% after the yogawear producer reported earnings and revenue that beat forecasts, but dimmed its outlook.
Facebook bounced 3% after Standard & Poor's announced late Wednesday that the social networking giant will be added to its benchmark S&P 500 index later this month.
Economically, the U.S. Department of Labor said initial jobless claims rose to 368,000 last week, higher than what economists were expecting.
Retail sales ticked up from the previous month, according to the Census Bureau, slightly beating Wall Street estimates.
Prices for 10-year U.S. Treasuries were lower, raising yields to 2.88% from Wednesday’s 2.84%. Treasury prices and yields move in opposite directions.
Oil prices took on 27 cents to $97.71 U.S. a barrel.
Gold prices faded $28.40 to $1,228.80 U.S. an ounce.
