Markets in Toronto failed to recover from triple-digit losses Thursday, as the selloff in health-care stocks continued, offsetting healthy gains in mining and energy shares.
The S&P/TSX composite index was off 97.08 points to conclude Thursday at 14,405.91. The loss halted a TSX win streak at six straight sessions.
The Canadian dollar gained 0.41 cents to 76.29 cents U.S.
In the health-care field, Valeant Pharmaceuticals plummeted $20.51, or 5.9%, to $325.81, while Extendicare dropped 19 cents, or 2.2%, to $8.50.
Consumer discretionary stocks also got rocked, primarily Linamar Corp., suffering $8.35, or 10.2%, to $73.24, while RONA went south 51 cents, or 3.3%, to $14.99
Industrials were also in the red, as Stantec slouched $4.16, or 11.4%, to $32.34, while SNC-Lavalin was bruised $3.68, or 8.4%, to $40.05.
Rival Bombardier proved the most actively traded stock losing a nickel, or 3.1%, to $1.54, on 10.9 million shares.
Metals and mining stocks provided some rays of light, mostly due to a rise of 8.3% in First Quantum Minerals shares, which closed trading at $10.28, while Capstone Mining climbed six cents, or 7.2%, to 89 cents.
Gold stocks were strong as well, Iamgold screaming 25 cents higher, or 14.5%, to $1.97, while Southern Arc Minerals rocketed 14.3% to four cents.
ON BAYSTREET
The TSX Venture was negative by 3.82 points to 581.03.
Eight of the 14 TSX subgroups were lower on the day, as health-care ailed 4.4%, consumer discretionary stocks slipped 2.1%, and industrials were weaker to 1.3%
The half-dozen laggards were led by metals and mining, up 3.1%, while gold shot up 2.1%, and energy proved 1.6% more energetic.
ON WALLSTREET
U.S. stocks closed lower on Thursday, with the NASDAQ off 1.6%, as investors weighed declines in oil and disappointing earnings ahead of Friday's key employment report.
The Dow Jones industrial average plummeted 120.72 points to close at 17,419.75, ending at its lowest level in six months and posted its first six-day losing streak since October.
The S&P 500 subtracted 16.28 points to 2,083.56
The NASDAQ index lost 83.5 points to 5,056.44, while Apple reversed recent declines to end mildly higher.
Viacom and 21st Century Fox plunged, joining Disney in a post-earnings stock decline to bring the media sector down about 8% for the week so far. At its lows the media sector was off about 11% for the week, on track for its worst week since October 2008, when it lost 21.9%
The greatest weight on the index was Disney, which closed 1.8% lower, off an earlier 5.5% decline. The stock extended its post-earnings plunge from Wednesday after the firm missed on revenue and disappointed investors with subscriber losses. Year-to-date, the stock is the third-best performer in the Dow.
Viacom fell 14% and is in a bear market. The firm matched earnings per share estimates but missed on revenue as advertising sales declined and lack of major movie releases from the firm during the quarter.
21st Century Fox declined 6.4% after reporting earnings that topped estimates on revenue that missed. The media company also announced a $5-billion U.S. stock buyback program.
CBS gained 3.6% after the firm reported an 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.
Keurig Green Mountain plunged nearly 30% after the firm 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 fell 13.6% after the firm 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 surged 17.2% after the firm reported earnings that beat estimates on both the top and bottom line. The nutritional products company raised its full-year earnings guidance, even as its sales are impacted by a stronger dollar.
Tesla closed down about 8.9% despite posting a lower-than-expected decline in earnings on revenue that beat. However, the automaker announced its 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 42 cents a barrel to $44.73 U.S.
Gold prices added $3.30 to $1,088.90 U.S. an ounce.
