Toronto stock markets continued to fade in early Thursday morning trade, amid a warning by the head of Canada’s central bank, and measures taken by his counterparts south of the border.
The S&P/TSX composite index fell 51.65 points to open Thursday at 14,475.92
The Canadian dollar was flat at 89.40 cents U.S.
Bombardier reported a better-than-expected profit for the third quarter as the number of aircraft it delivered shot up nearly 60%. Bombardier shares were unchanged soon after the opening at $3.87.
Agnico Eagle Mines reported lower-than-expected adjusted earnings on Wednesday, partly due to increased spending on exploration.
The company, however, raised its gold production forecasts for both this year and next due to strong operating results at its mines. Agnico shares went south $3.03, or 9.7%, to $28.29.
National Bank Financial cut the rating on Atco to sector perform from outperform. Atco shares lost $2.51, or 5.2%, to $46.15.
Bank of Canada Governor Stephen Poloz Wednesday welcomed the U.S. Federal Reserve's decision to abandon its ultra-easy money policy, saying it showed the U.S. economy is gaining traction, but he warned that weaker oil prices would crimp Canadian growth.
ON BAYSTREET
The TSX Venture Exchange turned negative 6.20 points to 774.87.
All but three of the 14 Toronto subgroups were lower, with gold down 4.6%, materials slipping 3.3%, and metals and mining down 2.1%.
The three gainers were health-care, up 3.3%, while telecoms inched up 0.2%, and information technology gained 0.1%.
ON WALLSTREET
The Dow Jones Industrial Average was headed higher, as a jump in its largest component, Visa Inc., lifted the index on Thursday, while other benchmarks, the S&P 500 and NASDAQ, were headed lower.
The Dow Jones Industrials picked up 66.31 points to 17,040.62
The S&P 500 dropped 2.11 points to 1,980.19. The NASDAQ index hesitated 15.50 points to 4,533.73.
Visa rose after the company’s earnings and revenue beat forecasts.
Avon Products Inc. topped Wall Street profit estimates as it reported positive results in Europe.
MasterCard Inc. beat analysts’ forecasts for third-quarter profits and sales.
ConocoPhillips topped profit estimates and affirmed its margin outlook.
Kellogg Co. topped profit estimates, excluding an accounting charge. Sales slightly missed estimates.
Lakeland Industries Inc. was up another 32%, following a big jump in late trade, after the hazmat-suit maker reported increased manufacturing capacity in response to the Ebola crisis.
Investors are digesting robust economic reports, a day after the Federal Reserve officially announced the conclusion of its bond-purchasing initiative.
Confirming the Fed’s optimistic view on the economy, the first reading of third-quarter Gross Domestic Product came in better than expected, expanding at a 3.5% annualized rate.
Weekly jobless claims ticked up, however, claims remain below the 300,000, pointing to an improving labour market.
Prices for 10-year U.S. Treasuries dipped, raising yields to 2.29% from Wednesday’s 2.32%. Treasury prices and yields move in opposite directions.
Oil prices lowered $1.09 to $81.11 U.S. a barrel.
Gold prices tumbled $21.80 to $1,203.10 U.S. an ounce.
