Equities in Canada’s biggest market opened sharply lower, pressured by fresh weakness in commodity markets, including a two-month low for crude oil, as well lower than expected profit from Manulife.
The S&P/TSX composite index moved lower 101.53 points to open Thursday’s session at 13,240.40. The index is in danger of running its losing streak to seven straight sessions.
The Canadian dollar dwindled 0.32 cents at 75.08 cents U.S.
Encana Corp reported a third-quarter loss, compared with a year-ago profit, hurt by an asset impairment charge of more than $1 billion.
Encana reported a net loss of $1.24 billion for the quarter ended Sept. 30, compared with a profit of $2.81 billion a year earlier.
Encana's operating loss, which excludes most one-time items, was $24 million, or three cents per share, compared with a profit of $281 million, or 38 cents per share, a year earlier. Analysts on average were expecting a loss of four cents per share.
Encana shares prospered 11 cents, or 1.1%, to $10.00
Manulife Financial reported a lower quarterly profit for the third quarter on Thursday, with losses in its oil-and-gas investments weighing on the results. Net earnings for the quarter ended Sept. 30 fell to $622 million, or 30 cents a share, from $1.1 billion, or 57 cents, a year ago. Core earnings per share rose to 43 cents from 39 cents a year earlier.
Manulife shares lopped off 52 cents, or 2.4%, to $21.64.
Socgen raised the rating on CGI Group to buy from hold to reflect sufficient upside and catalysts which is beneficial for the company. CGI shares added 20 cents to $54.10.
Canaccord Genuity raised the target price on Franco-Nevada to $74 from $71 saying that the company outperformed its peers and good asset performance. Franco-Nevada hiked $1.58, or 2.5%, to $64.07.
RBC cut the target price on Goldcorp to $17.00 from $18.00 considering that the company has failed to deliver on the operating and development targets. Goldcorp shares obtained 20 cents, or 1.3%, to $15.97.
On the economic scene, Statistics Canada was out this morning with its new housing price index for September edged up 0.1% in September, following a 0.3% increase in August.
ON BAYSTREET
The TSX Venture Exchange slid two points to 526.42
Nine of the 13 TSX subgroups were lower to begin the session, as metals and mining plummeted 3.2%, industrials lost 1.3%, and financials were poorer by 1.1%
The four gainers were led by a 1.2% surge in gold, while materials gathered 0.6%, and consumer discretionaries nicked ahead 0.1%.
ON WALLSTREET
U.S. stocks traded sharply lower Thursday as oil weighed while investors kept an eye on employment data points as well as several speeches from Federal Reserve officials.
The Dow Jones industrial average dumped 136.9 points to 17,545.32, as Goldman Sachs contributed the most losses to the index.The blue chips index is on track for its worst week in 10.
The S&P 500 skidded 14.34 points to 2,060.66, lower for the sixth time in seven sessions as energy lost about 1.5%.
The NASDAQ index dropped 25.81 points to 5,041.21.
Macy's posted its worst trading day since 2008 on Wednesday, after reporting mixed quarterly results.
In corporate news, Kohl's reported earnings of 75 cents U.S. per share for the third quarter, six cents above estimates. Revenue also exceeded consensus, and Kohl's also reported a 1% increase in same-store sales, above forecasts of a 0.6% rise.
Liberty Media said it will recapitalize its common stock into three separate tracking stocks, known as Liberty Braves, Liberty Media, and Liberty Sirius.
Viacom matched estimates with adjusted quarterly profit of $1.54 U.S. per share, with revenue slightly below consensus.
Thursday's session also featured several Fed speakers, including Fed Chair Janet Yellen, who delivered welcoming remarks at a conference in Washington, D.C., as investors continued to look for clues about the central bank's timing on hiking interest rates.
The Energy Information Administration will post its weekly inventories data at 11 a.m.
On the data front, weekly jobless claims came in at 276,000, unchanged week over week, but higher than the expected 270,000.
The September JOLTS report showed job openings were little at 5.5 million, the U.S. Bureau of Labor Statistics said.
Prices for 10-year U.S. Treasuries were slightly higher, lowering yields to 2.32% from Tuesday’s 2.33%. Treasury prices and yields move in opposite directions.
The bond market in the U.S. was closed Wednesday for Veterans’ Day
Oil prices dipped 93 cents a barrel to $42.00 U.S.
Gold prices fell $2.67 to $1,083.59 U.S. an ounce.
