Equities in Toronto fell at the open on Thursday, as anxious investors awaited the outcome of U.S.-China trade talks amid signs that negotiations were turning sour as Washington readies tariffs on Chinese goods.
The S&P/TSX Composite Index handed back 39.67 points to begin Thursday’s session at 16,357.73
The Canadian dollar eased off 0.14 to 74.08 cents
Canadian Natural Resources reported a better-than-expected first-quarter profit, boosted by higher prices for its crude on the back of Alberta's output curtailments. The stock, trading under the symbol, opened Thursday down 12 cents to $37.79.
Magna International lowered its 2019 profit forecast, as it expects higher costs on certain programs and lower earnings from a transmission joint venture in China. Magna shed $6.02, or 8.4%, to $65.69.
Canadian Tire reported a 1.7% drop in profit on higher interest expense and lease liabilities. The retailer dropped $5.14, or 3.4%, to 145.82.
CIBC raised the target price on Ivanhoe Mines to $3.40 from $3.30. Ivanhoe Mines lost six cents, or 1.8%, to $3.25.
CIBC raised the target price on Park Lawn Corp. to $32.00 from $30.00. Park Lawn shares gained 21 cents to $26.02
Canaccord Genuity raised the price target on Pollard Banknote to $25.00 from $24.50. Pollard shed 34 cents, or 1.5%, to $21.92.
Economically speaking, Statistics Canada said new house prices stayed put in March, for a second consecutive month.
Also, the agency said, exports rose 3.2% in March, while imports increased 2.5%.
As a result, Canada's merchandise trade deficit with the world narrowed from $3.4 billion in February to $3.2 billion in March.
Economists were calling for a trade balance of around $2.45 billion.
ON BAYSTREET
The TSX Venture Exchange dropped 0.38 points to 597.87
Seven of the 12 Toronto subgroups were lower by consumer discretionary, down 1.4%, information technology, dipping 1.2%, and health-care, lower by 1.1%.
The five gainers were led by gold, shining 0.6% brighter, while utilities and consumer staples each climbed 0.5%.
ON WALLSTREET
Stocks fell on Thursday, resuming a selloff this week, after President Donald Trump said China "broke the deal" at a rally Wednesday evening, fueling worries the U.S. and China will be unable to hatch a trade agreement before new tariffs go into effect at midnight.
The Dow Jones Industrials plummeted 325.11 points, or 1.3%, to 25,642.22.
The S&P 500 docked 36.69 points, or 1.3%, to 2,842.73.
The Dow is down more than 700 points and the S&P 500 has lost more than 3% this week after Trump threatened to raise tariffs on more Chinese goods over the weekend.
The NASDAQ Composite index backed off 125.97 points, or 1.6%, to 7,817.35
Shares of Intel fell another 5% on Thursday after sinking nearly 5% in the previous session as the chipmaker said it sees both revenue and earnings per share growing in the "single digit" percentage range over the next three years. BMO downgraded the stock to market perform from outperform on Thursday, saying it sees the stock "treading water at best."
Chipmakers, sensitive to higher tariffs, took a hit on Thursday as Nvidia and Micron both dropped about 4%.
Chevron's stock rose more than 3% Thursday after the company said it will not submit a new offer to acquire Anadarko Petroleum and will collect a $1 billion breakup fee. The oil major also said it is increasing share repurchase rate by 25% to $5 billion per year.
Liu He, China's vice premier and top trade negotiator, will dine with U.S. Trade Representative Robert Lighthizer and other U.S. officials Thursday evening in Washington, just hours before the new tariffs are imposed. Liu is not expected to meet with Trump on Thursday
Prices for the benchmark 10-year U.S. Treasury were sharply higher, weighing yields to 2.43% from Wednesday’s 2.49%. Treasury prices and yields move in opposite directions.
Oil prices slumped 78 cents to $61.34 U.S. a barrel.
Gold prices regained $4.90 to $1,286.30 U.S. an ounce.
