Markets in Toronto found themselves deep in negative territory early Thursday, after a mighty surge on Wednesday following the release of minutes from the U.S. Federal Reserve’s open market committee.
The S&P/TSX composite index ditched 115.18 points, to commence business Thursday at 14,551.29
The Canadian dollar gained 0.05 cents at 90.07 cents U.S.
Goldcorp’s chief executive says the company is looking to cut costs on its planned and already-delayed $3.9 billion El Morro copper and gold project in Chile, and that may mean new permits are needed and further holdups. Goldcorp shares traveled 61 cents, or 2.2%, to $26.60.
Canaccord Genuity raises its rating on Bank of Montreal to buy from hold, with a target price to $89.00 from $85.00. BMO shares gained 14 cents to $82.81.
Canaccord Genuity and National both raised their target price on Jean Coutu Group, whose shares took on 12 cents to $25.11
On the economic slate, Statistics Canada said its new housing price index rose 0.3% in August, following no change in July. The increase was the largest since January and mainly the result of strong gains in Ontario and Alberta.
ON BAYSTREET
The TSX Venture Exchange eked forward 0.56 points to 849.23.
All 14 Toronto subgroups were lower at the outset, as metals and mining dipped 3%, gold slipped 2.9%, and materials faded 2.4%.
ON WALLSTREET
U.S. stock prices were slightly lower early Thursday, as investors appeared eager to book profits after the main benchmarks recorded their biggest one-day gains of the year in the previous session.
The Dow Jones Industrials lost 61.97 points to 16,932.25, after yesterday’s gain of more than 270 points.
The S&P 500 retreated 7.61 points to 1,961.28. The NASDAQ index dipped 22.20 points, or 1.9%, to 4,445.89.
PepsiCo Inc. shares climbed 1.3% before the opening bell, with the beverage and snack giant reporting third-quarter profit and sales results that beat expectations.
Alcoa Inc. shares rose 1.7% ahead of the bell after the aluminum producer’s third-quarter earnings came in higher than Wall Street’s estimate.
Apple Inc. suppliers have delayed plans to mass produce a larger-screen tablet to early next year, according to a Wall Street Journal report. Carl Icahn’s promised letter to Apple arrived before the opening bell, as well; it was titled "Sale: Apple Shares at Half Price."
Shares in pre-market trades rose 1%.
Google Inc.’s tax deal in France is being challenged, according to a Wall Street Journal report.
Market reaction to the weekly jobless claims ahead of the bell was muted. U.S. government data showed the number of people applying for unemployment benefits was below 300,000 for the fourth week in a row.
Investors will hear speeches from several Federal Reserve officials Thursday, a day after investors sent stocks soaring as minutes released from the central bank’s September meeting appeared to quell any lingering fears that interest rates might be dialed up in a hurry.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.31% from Wednesday’s 2.33%. Treasury prices and yields move in opposite directions.
Oil prices docked 60 cents to $86.71 U.S. a barrel.
Gold prices surged $19.40 to $1,225.40 U.S. an ounce.
