Equities in Canada’s largest market opened lower on Thursday, dragged down by shares of energy companies on the back of a 2% decline in crude prices.
The S&P/TSX Composite Index declined 26.3 points to began trading Thursday at 16,476.45
The Canadian dollar dropped 0.13 cents to 74.28 cents
Bombardier said it would combine its corporate and regional jet units into a single aviation unit and shed more non-core assets by selling off its Belfast and Morocco aerostructures businesses.
Bombardier stock began the day’s trading down 14 cents, or 5.8%, to $2.20
Maple Leaf Foods reported a lower-than-expected quarterly profit, hit by higher costs as it invested more in new initiatives and capacity expansion.
Maple Leaf shares fell 80 cents, or 2.5%, to $30.95.
Canaccord Genuity raised the price target on CGI Group to $106 from $95. CGI shares acquired $1.06, or 1.1%, to $97.14.
TD Securities raised the price target on Gildan Activewear to $40 from $38. Gildan jumped $1.64, or 3.4%, to $50.49.
Raymond James raised the price target on Granite Oil to $2.00 from $1.40. Granite shares increased two cents, or 2.5%, to 81 cents.
ON BAYSTREET
The TSX Venture Exchange faded 2.85 points to 607.06
Seven of the 12 Toronto subgroups started off on the wrong foot, with health-care down 0.9%, gold sliding 0.8%, and industrials off 0.5%.
The five gainers were information technology, better by 0.8%, consumer discretionary issues, climbing 0.4%, and utilities, inching up 0.2%.
ON WALLSTREET
Stocks rose slightly, erasing earlier losses, as bank shares gained along with U.S. Treasury yields.
The Dow Jones Industrials eked up 3.81 points to 26,433.95
The S&P 500 increased 7.8 points to 2,931.53, as the financials sector gained 0.5%.
The NASDAQ Composite index added 44.27 points to 8,093.91, on the back of strong gains from Tesla.
Tesla shares rose more than 3% after the company unveiled a plan to raise up to $2 billion, with $1.35 billion coming from convertible bonds. The remaining $650 million would come from new equity, which includes a $10 million purchase by CEO Elon Musk.
Shares of Citigroup took on 0.3%, and Bank of America rose 0.8%, while J.P. Morgan Chase and Wells Fargo both rose at least 0.3%.
Meanwhile, earnings season continued with companies like Square reporting better-than-expected results on Wednesday after the close. However, the stock fell more than 7% as Square issued weaker-than-expected guidance for the second quarter.
Under Armour and Dunkin’ Brands reported better-than-expected results on Thursday. Under Armour shares rose 8.6% and Dunkin’ jumped 3.3%. Tempur Sealy also rose 7% on stronger-than-forecast results.
More than half of the S&P 500 has reported calendar first-quarter earnings and the results have largely outperformed expectations. Experts said 74.7% of the S&P 500 companies have beaten earnings estimates.
Yields and banks rose after Federal Reserve Chairman Jerome Powell said Wednesday that recently low inflation pressures may just be "transitory," hinting that a rate cut may not be on the horizon. Powell’s comments sent stocks tumbling in the previous session, with the Dow closing more than 150 points lower.
Powell’s comments followed the Fed’s decision to leave rates unchanged, citing lackluster inflation. Ahead of the meeting, President Donald Trump had asked the central bank to cut rates and increase stimulus.
Prices for the benchmark 10-year U.S. Treasury gained slightly, lowering yields to 2.52% from Wednesday’s 2.50%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.76 to $61.84 U.S. a barrel.
Gold prices slid $13.40 to $1,270.80 U.S. an ounce.
