Stocks in Canada’s biggest centre retreated slightly in early trade on Thursday, with banking stocks performing well as three of the country's biggest lenders posted better-than-expected earnings.
The S&P/TSX composite index dipped 10.43 points to open Thursday at 15,100.04
The Canadian dollar fell half a cent to 79.80 cents U.S.
Canadian Imperial Bank of Commerce said its quarterly profit more than tripled, boosted by a buoyant Canadian capital market and after a charge in its Caribbean unit a year ago. Net income attributable to common shareholders rose to $895 million, or $2.25 per share, in the second quarter ended April 30 from $292 million, or 73 Canadian cents per share, a year earlier.
Commerce shares gained 83 cents to $95.85.
Royal Bank of Canada posted a rise in quarterly profit on Thursday, helped by strength in its domestic banking and capital markets divisions. The company said net income for the second quarter ended April 30 was $2.5 billion, or $1.68 a share, compared with $2.2 billion, or $1.47 a share, a year ago. Excluding special items, earnings were $1.61 a share. Analysts on average had expected earnings of $1.60 a share.
RBC shares gathered 61 cents to $80.55
Toronto Dominion Bank posted a quarterly profit that topped market expectations on Thursday, driven by solid growth in its Canadian retail business. Net income was $1.86 billion, or 97 cents a share, for the second quarter ended April 30, compared with $1.99 billion, or $1.04 a share, a year ago. Excluding special items, earnings rose to $1.14 a share. Analysts, on average, expected earnings of $1.11 a share
TD shares eked ahead six cents to $56.04.
U.S. health regulators approved new irritable bowel syndrome drugs from Actavis Plc and Valeant Pharmaceuticals International Inc on Wednesday, validating big investments both companies made to acquire the products.
The Food and Drug Administration approved eluxadoline, to be sold under the brand name Viberzi, which Actavis obtained with its $1.1-billion acquisition last year of Furiex Pharmaceuticals. The agency also approved Valeant's Xifaxan, also known as rifaximin, which the company acquired with its $11-billion purchase earlier this year of Salix Pharmaceuticals Ltd.
Valeant shares zoomed $6.23, or 2.1%, to $304.31
Chile's environmental regulator filed charges against Lundin Mining Corp on Wednesday for a series of irregularities at its Candelaria copper deposit, the latest mine to fall under the regulator's increasingly watchful eye. The SMA regulator found 16 environmental irregularities at Candelaria between 2013 and 2014, including nine which it qualified as "grave."
Lundin shares dipped 19 cents, or 3.3%, to $5.60.
On the economic slate, Statistics Canada said its Industrial Product Price Index declined 0.9% in April, mainly because of lower prices for energy and petroleum products.
The agency’s Raw Materials Price Index increased 3.8% in the same month, largely as a result of higher prices for crude energy products.
Gross Domestic Product figures for March are due out Friday.
ON BAYSTREET
The TSX Venture Exchange squeezed out a gain of 1.17 points to 691.79
Nine of the 14 Toronto subgroups fell back in early trading, as metals and mining faded 1.7%, global base metals weakened 1.3%, and industrials slid 1.2%.
The five gainers were led by health-care, haler by 0.6%, telecoms, up 0.3%, and financials, up 0.2%
ON WALLSTREET
U.S. stocks traded mostly lower on Wednesday as lack of resolution on Greece debt talks and a massive selloff in Shanghai stocks weighed on investor sentiment.
The Dow Jones Industrials eased back 52.95 points to 18.110.04, with Caterpillar leading laggards and Microsoft the greatest advancer.
The S&P 500 index slumped 7.88 points to 2,115.60, with industrials leading all sectors except utilities lower.
The NASDAQ retreated 24.03 points from Wednesday’s all-time high to 5,082.56
Companies reporting on Thursday include Abercrombie & Fitch.
Avago Technologies will buy chip maker Broadcom for $37 billion U.S. in cash and stock, consisting of $54.50 U.S. in cash and 0.4378 Avago shares for each share of Broadcom.
Costco reported quarterly earnings of $1.17 U.S. per share, two cents above estimates, though revenue and comparable store sales were below forecasts. The warehouse retailer was hurt by lower gasoline prices and a stronger dollar.
Abercrombie lost 53 cents U.S. per share for its latest quarter, wider than the 34-cent U.S. consensus estimate. Revenue missed forecasts amid an eight percent drop in comparable store sales. The apparel retailer did say it sees sales improving, and that it will see continued headwinds from foreign currency fluctuations.
Futures were little changed after weekly initial jobless claims came in at 282,000, up slightly from last week's 274,000 read.
Pending home sales rose 3.4% in April, their highest in nine years.
In China, stocks plunged 6.5% on Thursday, with traders citing the tightening of marginal lending rules as an explanation. Despite the selloff, the Shanghai Composite is still up more than 40% year-to-date.
Meanwhile, U.S. officials were at the Group of Seven meeting of finance ministers and central bank chiefs in Dresden, Germany, on Thursday, which will continue until Friday. Greece is on the agenda, as well as reviving global growth.
Prices for 10-year U.S. Treasuries lost some strength, raising yields to 2.14% from Wednesday’s 2.13%. Treasury prices and yields move in opposite directions.
Oil prices dropped 64 cents a barrel to $56.87 U.S.
Gold prices dipped $2.90 to $1,183.60 U.S. an ounce.
