The Toronto stock market turned lower Thursday amid falling commodity prices and a warning by the Bank of Canada about the ongoing risk to the Canadian economy as a result of low oil prices.
The S&P/TSX composite index slumped 58.16 points to close at 14,830.88
The Canadian dollar drooped 0.16 cents to 81.42 cents U.S.
Metals and mining stocks took the worst beating, as Sherritt International tumbled 10 cents, or 4.1%, to $2.32, and Lundin Mining lost 22 cents, or 3.8%, to $5.55.
Gold stocks dulled in price, most notably Kinross Gold, sliding 14 cents, or 4.4%, to $3.02, and Eldorado Gold, down 23 cents, or 4.1%, to $5.32.
Health-care stocks provided one of the few bright spots, as Valeant Pharmaceuticals climbed $6.06, or 2.2%, to $286.97.
On the economic calendar, Statistics Canada reported that its new housing price index rose 0.1% in April, following no change in March.
In Ottawa, the Bank of Canada said in its latest financial system review that the oil slump on its own is unlikely to set off considerable systemic stress and that the probability of a severe recession remains low.
But it warned that the weakness caused by cheaper crude has put the Canadian system more at risk to any event that would lead to widespread job losses and falling incomes.
ON BAYSTREET
The TSX Venture Exchange was negative 0.17 points to 682.13
All but three of the 14 TSX subgroups were lower Thursday, with metals and mining tanking 2.8%, gold off 1.6%, and materials dipped 1.5%
The three gainers were health-care, advancing 0.5%, while information technology and real-estate each eked up 0.1%.
ON WALLSTREET
U.S. stocks closed slightly higher on Thursday, extending the prior day's rebound, as negative news out of Greece counterbalanced a good retail sales report.
The Dow Jones Industrials finished the day up 38.97 points to 18,039.37, with UnitedHealth leading gainers and Chevron the greatest decliner.
The S&P 500 index gained 4.03 points to 2,109.23, with utilities leading seven sectors higher and energy the greatest laggard.
The NASDAQ moved higher 5.82 points to 5,082.51
On the corporate front, Nike gained 0.5% on news the athletic apparel and footwear maker signed an eight-year NBA sponsorship contract, starting in 2017. Terms were not disclosed.
Rupert Murdoch, the 84-year old CEO and controlling shareholder of Twenty First Century Fox, is preparing to step down as CEO of the media giant and hand that title to his son James, according to numerous sources close to the Murdoch family.
Facebook closed down 0.4% after its shareholder conference.
Krispy Kreme beat estimates by two cents with adjusted quarterly profit of 24 cents U.S. per share, though revenue fell slightly short. Comparable store sales for the doughnut chain were up 5.2% during the quarter, amid improving profit margins.
JetBlue reported its "load factor" for May at 85.7%, an improvement of 0.5% from a year earlier.
The European Commission has opened a formal probe into Amazon.com's e-book business, focusing on agreements between Amazon and publishers. Regulators are focusing on clauses that require them to offer Amazon terms that are at least as good as those offered to competitors.
Retail sales for May showed an increase of 1.2%, with the ex-autos figure up 1%. April retail sales were revised upward to 0.2% from flat.
Economists polled by Reuters forecast retail sales rose 1.1% month-on-month and 0.7% excluding autos.
Weekly jobless claims totaled 279,000, slightly above expectations. April business inventories showed an increase of 0.4%, the largest gain in nearly a year. Retail inventories excluding autos, which go into the calculation of GDP, rose a solid 0.6% in April.
Greece's Prime Minister, Alexis Tsipras, and European Commission President Jean-Claude Juncker ended talks on the debt negotiations without coming to a resolution. A European Union diplomat told Reuters the discussion was a "last attempt" to reach a deal, while Dow Jones reported that Juncker said in a statement that he held an "important, friendly and constructive meeting" with Tsipras.
Prices for 10-year U.S. Treasuries rose sharply, lowering yields to 2.38% from Wednesday’s 2.49%. Treasury prices and yields move in opposite directions.
Oil prices dropped 75 cents a barrel to $60.68 U.S.
Gold prices retracted $4.90 at $1,181.70 U.S. an ounce.
