Equities in Canada’s largest market see-sawed marginally lower on Thursday, pulling back from Wednesday’s record highs and tracking weaker U.S. equity markets, as investors digested a batch of quarterly corporate results.
The S&P/TSX Composite Index declined 29.08 points to 16,000.25
The Canadian dollar strengthened 0.44 cents to 78 cents U.S.
Enbridge Inc was by far the biggest drag on the index, accounting for some 20 points on the downside, after shares fell 3.1% to $47.85 on news its quarterly profit missed estimates.
Imperial Oil slumped 4.2% to $39.71 following several ratings cuts from analysts.
Gildan Activewear was down 3.6% to $36.35 after reporting third-quarter results that fell short of expectations.
Sleep Country Canada Holdings tumbled 15% to $32.80 after the mattress company reported a quarterly profit that missed estimates and analysts cut their ratings and price targets.
BCE was the most influential gainer on the index, advancing 1.7% to $60.51 after posting a better-than-expected quarterly profit.
Kinaxis jumped 10.5% to $69.91 after posting a quarterly profit that came ahead of forecasts.
The materials group, which includes miners and other resource firms, added strength. First Quantum Minerals Ltd was up 5.2% at $15.27.
Bank of Canada Governor Stephen Poloz said on Wednesday that while monetary policy decisions will have an effect on the Canadian dollar, oil prices will have the biggest long-term impact on the currency.
ON BAYSTREET
The TSX Venture Exchange added 5.01 points to 794.35
Seven of the 12 TSX subgroups moved higher midday, with consumer staples picked up 0.9%, information technology aimed higher 0.5%, and telecoms inched up 0.2%.
Health-care weighed heaviest on the five laggards, sliding 1.5%, while utilities lost 0.7%, and consumer discretionaries weakened 0.3%.
ON WALLSTREET
U.S. equities traded lower on Thursday as investors were left disappointed by some of the details already released about the Republicans' tax-reform plan.
The Dow Jones industrial average registered 27.92 points to 23,369.92, to a new intra-day high, though Home Depot led decliners.
The S&P 500 dipped 2.46 points to 2,576.90, from Wednesday’s all-time high, with consumer discretionary leading decliners.
Shares of T. Rowe Price, meanwhile, jumped to trade 1.9% higher as asset managers reacted positively to the 401(k) news.
The NASDAQ faded 12.53 points to 6,716.53.
The plan would permanently lower the corporate tax rate to 20%, sources told the media. It would also keep retirement savings plans like the popular 401(k) intact. Also, it lowers the tax rate on repatriated cash to 12%.
Congress is expected to release details about a tax reform bill later on Thursday. President Donald Trump touted this as "the biggest tax event in the history of our country" on Tuesday.
Investors also waited to see who will be the next Fed chair. Trump is expected to make his announcement later on Thursday, with most expecting the president to tap Fed Governor Jerome Powell for the position.
Wall Street also kept an eye on earnings after tech giant Facebook posted better-than-expected quarterly results. Facebook reported adjusted earnings per share of $1.59, well above the expected $1.28.
Companies set to report after Thursday’s close include Apple, Starbucks and CBS.
Overall, earnings have mostly outperformed expectations this season, adding to the stock market's already strong gains for the year. As of Thursday morning, nearly 74% of the companies that have reported have surpassed earnings expectations
Prices for the benchmark 10-year Treasury note were up, lowering yields to 2.35% from Wednesday’s 2.37%. Treasury prices and yields move in opposite directions.
Oil prices regained three cents a barrel to $54.33 U.S.
Gold prices gained $2.70 an ounce to $1,280 U.S.
