Equities in Toronto slipped at the open on Thursday, hurt by a retreat among resource stocks on lower oil prices and a slump in Valeant Pharmaceuticals International Inc after it was subpoenaed by U.S. prosecutors over drug pricing.
The S&P/TSX composite index skidded 16.14 points to begin Thursday at 13,859.19
The Canadian dollar added 0.05 cents at 77.36 cents U.S.
Linamar Corp is in talks to buy French peer Montupet in a deal that values the company at roughly 800 million euro. Montupet is working with U.S. investment bank Jefferies to negotiate a deal, the sources said, cautioning that no transaction was certain and talks could still fall through. In other news.
Linamar shares gained 36 cents to $72.01
An Australian regulator raised antitrust concerns over a planned $6.5-billion takeover by Brookfield Asset Management of freight firm Asciano Ltd, potentially jeopardizing the country's biggest inbound deal in four years. The Australian Competition and Consumer Commission said the proposed deal, which would be the largest-ever purchase of an Australian firm by a Canadian company, would give Brookfield Asciano's rail network and train operations in two of the country's eight states.
Brookfield shares gained 22 cents to $43.34.
Transition Therapeutics Inc said detailed data analysis of a study of its experimental drug showed it would benefit a group of Alzheimer's patients. The company said its drug was significantly effective in treating patients with severe agitation and aggression.
Transition shares rocketed 90 cents, or 36.1%, to begin the day at $3.39.
Valeant Pharmaceuticals International said it was subpoenaed by U.S. prosecutors seeking information on its pricing decisions, drug distribution and patient assistance programs. The company said it also responded to a letter from U.S. Democratic Senator Claire McCaskill concerning Valeant's heart drugs Nitropress and Isuprel.
Valeant shares plummeted $17.70, or 7.7%, to $211.38.
National Bank Financial raised the rating on Franco-Nevada to outperform saying the company has the most diversified asset base in the precious metal royalty space.
Franco-Nevada shares retreated 81 cents, or 1.2%, to $65.73.
National Bank Financial raised the target price on Sandstorm Gold to $5.00 from $4.75 considering that the diversification strategy has been picking up earlier-stage royalties on junior exploration projects and smaller royalty companies.
Sandstorm shares docked four cents, or 1%, to $3.90.
Neptune Technologies & Bioressources Inc reports Q2 figures today, predicting a loss of six cents per share.
Neptune gained eight cents, or 5.2%, to $1.63.
Economically speaking, the Canadian Real Estate Association said national home sales activity declined by 2.1% from August to September. Actual (not seasonally-adjusted) activity edged up 0.7% compared to September 2014.
ON BAYSTREET
The TSX Venture Exchange subtracted 1.74 points to 555.02
Eight of the 13 TSX subgroups were higher to begin the session, with utilities better by 0.8%, industrials improving 0.7%, and information technology better 0.6%.
The five laggards were weighed most by health-care, down 2.5%, gold, off 1.9%, and materials, sliding 0.8%.
ON WALLSTREET
U.S. stocks traded higher Thursday as investors digested key bank earnings and mostly soft economic data that supported the case for a rate hike delay.
The Dow Jones industrial average recovered 67.19 points to 16,991.94, with Boeing leading advancers and UnitedHealth the greatest decliner.
The S&P 500 restored 7.15 points to 2,001.39, with consumer staples leading eight sectors higher and materials and health care the only laggards.
The NASDAQ index picked up 30.34 points to 4,813.19
Earlier, Goldman Sachs reported earnings that missed on the top and bottom line as a decline in bond trading hurt profits.
Citigroup earnings beat but revenue missed expectations and declined from the same period last year.
Earnings season has started off with some weak corporate commentaries, despite the fact that most companies so far are beating on the bottom line.
Wal-Mart's disappointing forecast Wednesday of a potential double-digit earnings decline in the coming fiscal year kicked a market already reacting to weaker-than-expected September retail sales, soft producer prices and flat business inventories.
Schlumberger, Mattel, Western Alliance, People's United Financial and WD-40 are all due after the bell.
In economic news, September CPI declined 0.2%, matching expectations. Ex-food and energy, the price index rose 0.2% for the month, following a 0.1% rise in August.
Weekly jobless claims came in at 255,000. The October Empire State Index posted a read of negative 11.36. The index showed negative 14.67 in September.
The Philly Fed index posted negative 4.5 for October.
Prices for 10-year U.S. Treasuries were lower, raising yields to 2.02% from Wednesday’s 2%. Treasury prices and yields move in opposite directions.
Oil prices slipped 78 cents a barrel to $45.86 U.S.
Gold prices dipped 15 cents to $1,183.98 U.S. an ounce.
