Canadian stocks fell hard on Thursday, as global traders voiced concern over whether markets will be able to thrive once the U.S. Federal Reserve stops pumping funds in the system.
The S&P/TSX composite index fell 99.04 points to open Thursday at 15,116.15
The Canadian dollar shaved off 0.09 cents to 93.79 cents U.S.
Cogeco Cable reported a lower third-quarter profit and cut its full-year profit outlook by 10.6% due to impairment charges at Cogeco Cable Canada. Cogeco shares dropped $1.06, or 1.8%, to $58.13.
Canada is considering issuing more ultra-long bonds, maturing in 50 years, which would allow the government to lock in borrowing costs near historic lows through an expansion of an offering first made earlier this year.
The Globe and Mail reached a tentative contract deal with the union representing its editorial, advertising sales and circulation workers, likely averting a work stoppage at the country's largest national daily.
CIBC raised the target price on Air Canada to $14.25 from $11, with an outperform rating. Air Canada shares gave back 14 cents to $9.58.
Also, CIBC raised the target price on Canyon Services Group to $22 from $19.50, with a sector perform rating. Canyon shares dwindled 53 cents, or 2.8%, to $18.53.
On the economic beat, Statistics Canada reported this morning that housing prices rose 0.1% in May, following five months of gains ranging from 0.1% to 0.3%. The increase was largely the result of higher new home prices in the Prairie region.
ON BAYSTREET
The TSX Venture Exchange slumped 5.36 points to 1,027.27.
All but two of the 14 Toronto subgroups were lower Thursday morning, with metals and mining sliding 1.6%, energy off 1.5%, and global base metals down 1.3%.
The two gainers were gold, shining 1.4% brighter, and materials, nicking up but 0.1%.
ON WALLSTREET
U.S. stocks are down sharply Thursday as jitters about a Portuguese bank and ugly economic data raise more doubts about whether Europe is recovering.
The Dow Jones Industrials plummeted 119.38 points to 16,866.23
The S&P 500 faltered 13.10 points to 1,959.73, and the NASDAQ composite pulled back 40.65 points to 4,378.38.
The losses wiped out a rebound in U.S. stocks from Wednesday that came after the Federal Reserve reassured markets that it is in no hurry to raise interest rates once it's done tapering in October.
The ugly day began in Europe, where a little known Portuguese bank brought back concerns about the health of the continent's financial system.
Trading of Espirito Santo Financial Group -- the leading shareholder in Portugal's biggest bank -- was suspended. Shares of Banco Espirito Santo plummeted 17% before they were also halted.
But that's not all that caused European markets to tumble. New reports show industrial production fell sharply in France and Italy, signaling the European economic recovery could be in trouble.
The concerns about Europe mark a sharp reversal from recent months when the continent had been seen as a mild positive to global growth following its sovereign debt crisis.
After Alcoa kicked off earnings season earlier this week with a home run, a number of retailers reported mixed results on Thursday.
Family Dollar dipped 2% after the struggling retailer reported a drop in same-store sales and profits. The discounter also dimmed its forecast slightly. But Family Dollar has a plan to lure in shoppers: booze. The company said it will follow Wal-Mart by selling beer and wine in the coming years.
Shares of Tractor Supply Co. slumped almost 6% before the open after the company posted disappointing earnings on Wednesday.
Americans received another glimmer of hope about the jobs market on Thursday. The U.S. Labor Department said initial claims for jobless benefits fell by 11,000 last week to 304,000. That was slightly better than many on Wall Street expected.
The weekly claims report comes on the heels of the June jobs report, which revealed the U.S. added an impressive 288,000 jobs.
Prices for 10-year U.S. Treasuries leaped, lowering yields to 2.51% from Wednesday’s 2.55%. Treasury prices and yields move in opposite directions.
Oil prices fell 13 cents to $102.16 U.S. a barrel.
Gold prices vaulted $17.10 to $1,341.40 U.S. an ounce.
