The Toronto stock market was little changed Thursday as a U.S. budget deal and a solid retail sales report fueled 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 19.03 points to conclude the day at 13,114.39, though off its lows of much of the session
The Canadian dollar ditched 0.45 to 93.99 cents U.S.
The gold sector was down Thursday afternoon, dragged down by Iamgold Corp, which said that it is suspending its dividend effective immediately, citing the need to preserve cash in the face of falling prices for bullion. It shares fell 44 cents, or 10.8%, to $3.63.
The interest-rate sensitive utilities sector was also a major source of weakness, as Fed tapering talk has pushed bond yields higher.
TransAlta fell 13 cents to $13.51.
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 $1.15 to $30.04.
The base metals sector lost ground while March copper was unchanged at $3.29 U.S. a pound. Thompson Creek Resources dipped six cents to $2.26 while First Quantum Minerals gained 30 cents to $17.20.
The energy sector was up as Suncor Energy climbed 49 cents to $36.00
The industrials group was the biggest advancer, with Canadian National Railways up 75 cents to $58.40.
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 narrowbody aircraft. Air Canada stock slipped eight cents to $7.60.
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 10.94 points to 886.09
All but four of the 14 subgroups were lower on the day, with utilities sinking 1.7%, consumer staples down 0.9%, and telecoms sliding 0.8%.
The four gainers were led by industrials, up 0.6%, health-care, gaining 0.3%, and energy, 0.2% more energetic.
ON WALLSTREET
Stocks were mixed Thursday as investors watched some high-profile initial public offerings and looked for clues as to when the U.S. Federal Reserve will wind down its bond buying program.
The Dow Jones Industrials shed 104.10 points to 15,739.43
The S&P 500 index dropped 6.72 points to 1,775.50. The NASDAQ surrendered 5.41 points to 3,998.40
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 appear. The S&P 500 has fallen 1.5% so far this month.
Hilton Worldwide popped 9% once it began trading on New York Stock Exchange. The hotel chain raised $2.4 billion U.S. through an initial public offering.
Food services company Aramark also went public, raising $725 million U.S. Shares jumped 14%.
Shares of Lululemon tanked more than 11% after the yogawear producer reported earnings and revenue that beat forecasts, but dimmed its outlook.
Facebook bounced over 5% 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 were unchanged at $97.44 U.S. a barrel.
Gold prices faded $31.10 to $1,226.10 U.S. an ounce.
