Equities in Canada’s biggest centre fell on Thursday, with shares in health-care stocks and energy companies drooping on lower oil prices while earnings surprises moved specific financial, telecom, mining and other stocks.
The S&P/TSX composite index was off 120.75 points to greet noon at 14,382.24. If the numbers hold till the finish, it would halt a TSX win streak at six straight sessions.
The Canadian dollar acquired 0.15 cents to 76.03 cents U.S.
The energy sector, which accounts for 19% of the weight of the Toronto Stock Exchange's S&P/TSX composite index, fell as oil slipped to multi-month lows amid a persistent global supply glut and little sign of a reduction in production.
Suncor Energy Inc lost 1.7% to $36.67. Canadian Natural Resources retreated 1.2% to $31.94, despite a fall in production expenses that helped the country's largest independent petroleum producer report better-than-expected adjusted earnings.
Shares in SNC-Lavalin Group Inc fell 9% to $39.81 after the engineering and construction company said costly problems with two projects hurt its earnings.
Barrick Gold Corp shares gained 4.6% to $9.07 after the major gold miner said it is making big strides toward an ambitious debt reduction target, announcing a financing deal for its Dominican mine and the planned sale of a suite of U.S. assets.
Insurer Sun Life Financial Inc jumped 4.1% to $44.59 after reporting a quarterly profit that breezed past analysts' estimates, driven by growth in all its businesses and a weaker Canadian dollar.
TMX Group Ltd, the operator of the Toronto Stock Exchange, fell 2.7% to $48.57 after reporting a lower-than-expected quarterly profit, hurt by a drop in revenue at its issuer services and cash markets trading businesses.
ON BAYSTREET
The TSX Venture was negative by 4.63 points to 580.22.
Nine of the 14 TSX subgroups were lower by noon ET, most notably health-care, sliding 4.1%, while consumer discretionary and industrials were each off 1.6%.
The five gaining groups were led by gold, up 3%, metals and mining, up 2.5%, and materials, ahead 1.2%.
ON WALLSTREET
U.S. stocks traded lower on Thursday as investors digested renewed declines in oil and a slew of earnings releases, ahead of Friday's key employment report.
The Dow Jones industrial average plummeted 142.67 points midday to 17,397.80, with Disney leading decliners and Cisco the greatest advancer.
The S&P 500 subtracted 20.74 points, or 1%, to 2,079.10, with energy leading nine sectors lower and financials the only advancer.
The NASDAQ index lost 95.96 points, or 1.9%, to 5,043.98, as biotech losses accelerated and Apple turned negative
Viacom fell more than 9.5% to a multi-year low. The firm matched earnings per share estimates but missed on revenue as the company did not release any major movies during the quarter.
21st Century Fox earned an adjusted 39 cents U.S. per share for the second quarter, two cents above estimates, but revenue missed Street forecasts. The media company also announced a $5-billion U.S. stock buyback program.
CBS reported adjusted quarterly profit of 74 cents U.S. per share, two cents above estimates, with revenue essentially in line. CBS benefited from higher subscription fees and increasing revenue from affiliates.
Disney extended its post-earnings plunge from Wednesday after the firm missed on revenue and disappointed investors. Year-to-date, the stock is the third-best performer in the Dow.
Keurig Green Mountain missed significantly on revenue and sales of its coffee pods fell for the first time ever. The single-serve coffee company also lowered its sales and earnings forecasts and announced it would cut 5% of its workforce.
Fitbit reported that its profit margins fell during the second quarter and would likely stay at current levels for the rest of the year. That news has put the fitness tracking device maker's shares under pressure, despite seeing revenue more than triple during the second quarter compared to a year earlier.
Herbalife reported adjusted quarterly profit of $1.24 U.S. per share, 13 cents above estimates, and revenue was slightly above forecasts. The nutritional products company raised its full-year earnings guidance, even as its sales are impacted by a stronger dollar.
Tesla lost 48 cents U.S. per share for its latest quarter, smaller than the 60 cents U.S. Wall Street was predicting. Revenue was slightly above estimates, but investors are focusing on Tesla's second cut in its sales forecast in the past year.
Reports from Con Ed, EOG Resources, Wingstop, Lions Gate, Great Plains Energy, Noodles and Co., TrueCar, Zynga and Monster Beverage are all due after the bell.
On the economic slate, weekly jobless claims came in Thursday at 270,000, slightly below expectations.
U.S. job cuts soared to a nearly four-year high in July as the military announced plans to reduce troop and civilian workforce payrolls, according to outplacement consultancy Challenger, Gray & Christmas.
Employers based in the United States announced 105,696 layoffs last month, the first time monthly reductions exceeded 100,000 since September 2011. A year ago, U.S. companies announced plans to cut 46,887 jobs.
Goldman Sachs economists raised their forecast for non-farm payrolls to 225,000 from 210,000 after the ISM non-manufacturing survey surged to a 10-year high and included a surprisingly strong employment component.
Economists expect a consensus 223,000 non-farm payrolls, and an unchanged unemployment rate of 5.3%, according to Thomson Reuters.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.22% from Wednesday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices deducted 84 cents a barrel to $44.31 U.S.
Gold prices added $3.10 to $1,088.70 U.S. an ounce.
