Equities in Canada’s largest market headed downward in early trade on Thursday, as energy and mining stocks fell sharply with lower prices for oil, gold and industrial metals.
The S&P/TSX Composite Index dropped 78.4 points to open the session at 15,464.74
The Canadian dollar slipped 0.02 cents at 72.8 cents U.S.
Penn West Petroleum reported a quarterly profit, compared to a year-ago loss, helped by an uptick in crude prices and gains from asset sales.
Shares in Penn West added a penny to $2.00.
Canadian Natural Resources, the country's largest independent petroleum producer, reported a first-quarter profit, compared with a loss a year earlier, helped by an uptick in crude prices.
Natural Resources dumped $1.75, or 4.1%, to $41.50.
Manulife Financial on Wednesday reported a rise in first-quarter earnings, slightly beating market forecasts with help from strong sales in Asia.
Manulife acquired 38 cents, or 1.6%, to $24.51.
Desjardins raised the target price on Gildan Activewear to $42.00 from $38.00. Gildan shares hiked 98 cents, or 2.6%, to $38.84.
Raymond James raised the target price on Goeasy to $41.00 from $36.00. Goeasy gained 13 cents to $33.87.
BMO raised the target price on Loblaw Companies to $85 from $71. The grocery giant saw its shares triumph $1.54, or 2%, to $78.40.
In the economic docket, Statistics Canada reported Thursday morning that Canada’s international merchandise trade balance with the world posted a $135-million deficit in March. Exports rose 3.8% while imports were up 1.7%.
ON BAYSTREET
The TSX Venture Exchange dropped 6.93 points to 786.51
Eight of 12 TSX subgroups were negative to start out Thursday, as gold and energy stocks each shed 2.3%, while materials were down 2%.
The four subgroups gaining ground were led by consumer staples, improving 0.4%, health-care, up 0.3%, and financials, up 0.2%.
ON WALLSTREET
Energy stocks dropped more than 1.5% Thursday, dragging the broader indexes lower ahead of a Congress vote on health care.
The Dow Jones Industrial Average fell 26.9 points to start the day at 20.931, with Disney and Chevron contributing the most losses.
The S&P 500 inched up 0.48 points to 2,388.69
The NASDAQ dipped 0.21 points to 6,072.34
Wall Street also set its sights on Washington, as the House of Representatives voting on a controversial health care bill that would repeal and replace key components of Obamacare.
The GOP-led House scrapped a previous attempt at repealing and replacing Obamacare in March, raising concerns about when the government would tackle tax reform.
Meanwhile, earnings season continued, as social media giant Facebook topped estimates for both profit and revenue, as did Chesapeake Energy and Church & Dwight, among others.
Investors also pored over a slew of economic data on Thursday. Jobless claims fell by 19,000 to 238,000, while productivity for the first quarter fell more than expected. The U.S. trade deficit, meanwhile, narrowed to $43.7 billion. Factory orders were due mid-morning.
These data releases culminate on Friday, with the U.S. government posting its monthly payrolls report. Economists expect the U.S. economy to have added 185,000 jobs last month versus 98,000 in March.
Prices for the benchmark 10-year Treasury note fell, raising yields to 2.36% from Wednesday’s 2.32%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.10 at $46.72 U.S. a barrel
Gold prices slumped $17.70 at $1,230.80 U.S. an ounce.
