Equities in Canada’s largest market turned negative shortly after the open on Thursday, as stronger energy stocks failed to offset weaker materials and financials shares, as well as disappointing earnings and news from Bombardier.
The S&P/TSX composite index faded 64.38 points to open Thursday at 14,237.42, after a jump Wednesday of more than 220 points.
The Canadian dollar slid 0.41 cents to 76.85 cents U.S.
Bombardier posted a 19.4% drop in quarterly profit, hurt by a fall in sales at its commercial aircraft and transportation unit. Net income fell to $125 million, or six cents per share, in the second quarter, from $155 million, or eight cents per share, a year earlier. Revenue fell 5.5% to $4.62 billion.
Bombardier shares stumbled 20 cents, or 10.3%, to $1.75.
Cenovus Energy reported an 80% fall in quarterly profit, hurt by a steep decline in oil prices. The company said it was going to cut 300-400 jobs at its Calgary offices by the end of the year, after cutting about 800 positions earlier in the year. Net income fell to $126 million, or 15 cents per share, in the second quarter, from $615 million, or 81 cents per share, a year earlier.
Cenovus shares perked 64 cents, or 3.4%, to $19.25.
Home Capital Group reported a 2% fall in quarterly profit, hurt by a fall in mortgage originations. Home Capital's net profit slipped to $72.3 million, or $1.03 per share, in the second quarter ended June 30, from $73.7 million, or $1.05 per share, a year earlier.
Home shares gathered $2.54, or 8.9%, to $30.94.
Kinross Gold is again considering cutting jobs at its Tasiast gold mine in Mauritania, as the Canadian miner looks for ways to reduce costs at its higher-cost mines amid sliding metals prices. Kinross reported a loss of $83.2 million, or seven cents a share, in the three months to end of June. That compared with net earnings of $46 million, or four cents a share, in the same period in 2014.
Kinross shares were unchanged at $2.34.
Open Text Corp maker raised its fiscal 2016 operating margin forecast and reported better-than-expected revenue for the first time in four quarters as it closed more big contracts. The company's total revenue fell about three percent to $482.7 million in the fourth quarter, but beat its own forecast of $440-$455 million and analysts' average estimate of $447.2 million. Net income attributable to Open Text fell 22% to $68.8 million or 56 cents per share.
Open Text ballooned $9.02, or 18.5%, to $57.75.
Penn West Petroleum Ltd reported a second-quarter loss, compared with a profit a year earlier, hurt by weak oil prices. The company's net loss was $28 million, or six cents per share, in the second quarter, compared with a profit of $143 million, or 29 cents per share, a year earlier. Its total revenue fell 43% to $325 million
Penn West shares gained four cents to $1.76.
ON BAYSTREET
The TSX Venture Exchange gained 2.21 points to 586.97
All but two of the 14 TSX subgroups were lower, with metals and mining down 4.4%, gold fading 2.9% and materials sinking 2%
The two gainers were energy and information technology, each up 1.3%.
ON WALLSTREET
U.S. equities traded lower on Thursday as investors digested more earnings and second quarter Gross Domestic Product a day after the Federal Reserve left interest rates unchanged.
The Dow Jones industrial average dwindled 79.30 points to 17,672.09, as Procter & Gamble weighed.
The firm reported earnings that beat expectations on revenue that missed slightly. The company said organic sales in the current fiscal year will be down slightly to up single digits.
The S&P 500 lost 10.74 points to 2,097.83, with health-care leading nine sectors lower and materials the only advancer.
The NASDAQ index moved down 34.75 points to 5,076.98
Insurance company Cigna also posted mixed quarterly results, posting earning per share of $2.55 U.S., above the estimated $2.31 U.S., but revenue came in below forecasts.
AB InBev saw its latest profit fall short of analyst estimates, with sales in key markets weaker. The company said poor weather and weak economic conditions weighed on its results.
In economic news, the Commerce Department said U.S. gross domestic product expanded at an annual rate of 2.3%, slightly below economists' estimates.
The department revised its first-quarter GDP reading to a 0.6% increase from a 0.2% contraction.
U.S. weekly jobless claims increased by 12,000 week-over-week, but came in below expectations at 267,000, the U.S. Labor Department said.
On Wednesday, the central bank kept rates unchanged and gave no hint of liftoff coming in the next meeting. The decision on the rates was unanimous. Policymakers said the economy is expanding moderately and made no mention of recent volatility around Greece or China.
Prices for 10-year U.S. Treasuries were unchanged, keeping yields at Wednesday’s 2.28%.
Oil prices eased eight cents a barrel to $48.71 U.S.
Gold prices fell $9.60 to $1,083.70 U.S. an ounce.
