Stock indices in Canada’s largest centre opened lower on Thursday, as energy stocks were weighed by lower crude prices and disappointing earnings from Suncor Energy and Pretium Resources.
The TSX Composite Index retreated 39.26 points to open for business Thursday at 16,462.17
The Canadian dollar eked higher 0.05 cents to 76.01 cents U.S.
Suncor Energy reported third-quarter profit on Wednesday, just shy of estimates as weak business environment and higher operating and transportation expenses dented the second-largest Canadian oil and gas producer’s margins
Suncor shares ducked lower $1.25, or 3.2%, to $38.46, while Pretium slid $3.54, or 22%, to $12.54.
Bombardier used more cash than analysts had expected in the third quarter as it ramped up production of its flagship Global 7500 business jet and pushed back some train deliveries. Bombardier acquired a dime, or 6.3%, to $1.69.
Cenovus Energy reported a quarterly profit compared to a loss a year earlier, as it benefited from higher crude prices because of government-imposed production curbs and a tight leash on costs. Cenovus gave back 11 cents, or 1%, to $11.29.
Thomson Reuters reported higher-than-expected quarterly operating profit on Thursday and affirmed its 2019 and 2020 estimates. Thomson sank 93 cents, or 1%, to $88.17.
CIBC cut the target price on Genworth MI Canada to $56.00 from $57.00. Genworth shares docked 23 cents to $52.62.
Scotiabank cut the target price on Maple Leaf Foods to $35.00 from $42.50. Maple Leaf shares dipped $1.55, or 6.2%, to $23.48.
Scotiabank raised the target price on Quebecor to $37.00 from $36.00. Quebecor shares acquired eight cents to $30.58.
Economically speaking, Statistics Canada reported that real gross domestic product edged up 0.1% in August, following no change in July.
Goods-producing industries were up 0.2% after two months of declines, led by a rebound in manufacturing, while services-producing industries edged up 0.1%.
Overall, there were gains in 14 out of 20 industrial sectors.
The agency’s Industrial Product Price Index edged down 0.1% in September, primarily as a result of lower prices for meat, fish and dairy products.
The Raw Materials Price Index was unchanged from August. Higher prices for crude energy products were mostly offset by lower prices for animals and animal products.
Finally, the average weekly earnings of non-farm payroll employees were $1,035 in August, up 0.6% from July. StatsCan added that, compared with August 2018, earnings increased by 2.9%.
ON BAYSTREET
The TSX Venture Exchange edged higher 0.75 at 539
The 12 Toronto subgroups were evenly divided, as gold headed higher 1.3%, while materials and utilities each moved higher 0.3%
The half-dozen laggards were weighed most by energy, down 2.1%, health-care, dipping 0.7%, and financials, off 0.3%
ON WALLSTREET
The S&P 500 dipped Thursday from a record high as persistent U.S.-China trade war concerns overshadowed strong earnings.
The Dow Jones Industrial Average moved lower 84.78 points to begin Thursday at 27,101.91
The S&P 500 sank 7.48 points to 3,039.29
The NASDAQ Composite Index flopped 11.11 points to 8,292.87
Media reports circulated Thursday that Chinese officials have been casting doubt over the possibility of a long-term trade deal with the U.S. The report added Chinese officials are concerned about President Donald Trump’s “impulsive nature” and the risk of him backing out of any kind of deal.
Trade bellwether Caterpillar slipped 1.5% while Micron Technology shares were down 1.8%.
Strong earnings from Apple and Facebook slightly offset trade concerns and kept losses in check.
Apple shares rose 2.2% after the tech giant posted earnings per share of $3.03 on revenue of $64 billion. Analysts expected a profit of $2.84 per share on sales of $62.99 billion. The company’s iPhone and services revenues also topped estimates.
Facebook, meanwhile, climbed more than 4% after the social-media company reported a profit of $2.12 per share, topping an estimate of $1.91 per share. Facebook also reported stronger-than-expected average revenue per user.
So far, two thirds of the S&P 500 have reported quarterly numbers. Of those companies, 75% posted better-than-expected results
In other corporate news, Italian-American automaker Fiat Chrysler (FCA) announced a landmark merger with French rival PSA Peugeot Citroen, which will create the world’s fourth-largest car maker.
FCA will pay its shareholders a 5.5-billion-euro ($6.1-billion U.S.) special dividend and the two companies will join forces through a 50-50 share swap. The new company’s shares will be listed in New York, Paris and Milan.
Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to 1.71% from Wednesday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices slipped 69 cents to $54.37 U.S. a barrel.
Gold prices gained 16 dollars to $1,512.70 U.S. an ounce.
