Equity markets in Toronto fell broadly at the open on Thursday, with losses led by energy companies, as crude prices were hit by fears of economic fallout from a fast spreading viral outbreak in China.
The TSX Composite Index dipped 26.92 points to open Thursday at 17,484.83
The Canadian dollar lost 0.07 cents to 75.68 cents U.S.
CIBC raised the price target on Canadian Pacific Railway to $380 from $365. CP shares squeezed ahead one cent to $348.57.
CIBC cut the rating on Fortis to neutral from outperform. Fortis shares ditched 44 cents to $57.60.
Countries have started isolating hundreds of citizens evacuated from the Chinese city of Wuhan to stop the spread of the epidemic that has killed 170 people.
All eyes were on the World Health Organization, which hasn't declared the flu-like coronavirus a global emergency, but was to reconsider its position later in the day.
On the economic slate, Statistics Canada said the average weekly earnings of non-farm payroll employees were $1,042 in November, little changed from October.
On a year-over-year basis, earnings grew 3.1%, continuing an upward trend observed since March
ON BAYSTREET
The TSX Venture Exchange dropped 0.28 points, to 577.21.
All but two of the 12 TSX subgroups were pointed downward to begin the session, with consumer discretionary and communication stocks each down 0.6%, while real-estate weakened 0.4%.
The two gainers were gold and information technology, each up 0.2%.
ON WALLSTREET
Stocks fell on Thursday as the death toll from the coronavirus continues to rise in China, stoking fears about the virus’ impact on global economic growth.
The Dow Jones Industrials declined 22.3 points to begin Thursday at 28,712.15
The S&P 500 lost 8.66 points at 3,264.74
The NASDAQ subtracted 8.12 points to 9,267.04.
China’s National Health Commission confirmed Thursday that the death toll has hit 170, with confirmed cases of the virus surpassing 7,700. Cases have also been confirmed in places outside of China, including the U.S.
Airline stocks such as American, Delta and United all fell more than 0.5%. Casino stocks Las Vegas Sands dipped 0.5%, and Wynn Resorts dropped 1%. Expedia sank 1.7% and Carnival shares were down by 5.4%.
Caterpillar, a bellwether for global the global economy, was down 0.4%.
Wall Street was also under pressure after Facebook reported quarterly results that showed a sharp rise in expenses and narrowing margins. Facebook shares fell more than 7%.
Tesla enjoyed a second consecutive quarterly profit on record vehicle deliveries and vowed to produce over 500,000 units this year, sending the stock surging by 8.3%. Microsoft beat Wall Street expectations on fourth-quarter sales and profit on the back of strong cloud revenue.
About 200 S&P 500 companies have reported quarterly earnings thus far, with 70% of them posting better-than-expected profits.
In-line data on the U.S. economy failed to quell the lingering fears around the virus and the mixed quarterly results. U.S. GDP grew by 2.1% in the fourth quarter, matching a Dow Jones estimate. However, the U.S. economy grew at its slowest annual rate in three years in 2019.
Prices for the 10-Year U.S. Treasury sneaked upward lowering yields to 1.57% from Wednesday’s 1.59%. Treasury prices and yields move in opposite directions.
Oil prices decreased 98 cents to $52.35 U.S. a barrel.
Gold prices gained $7.50 to $1,583.50 U.S. an ounce.
