Equities in Canada’s biggest market fell at open on Thursday, dragged down by stocks of cannabis companies, a day after hitting a record high on the back of a sharp rally in the sector fueled by Reddit-inspired retail investors.
The S&P/TSX Composite stepped back 24.44 points to kick off Thursday at 18,433.34.
The Canadian dollar regained 0.22 cents to 78.95 cents U.S.
Manulife Financial and Sun Life Financial expressed optimism about 2021, despite continued uncertainty around the COVID-19 pandemic after both reported better-than-expected fourth-quarter profits.
Manulife shares launched 77 cents, or 3.1%, to $25.37, while rival Sun Life gained $2.01, or 3.3%, to $63.75.
Bombardier said it would cut about 1,600 jobs and reported an adjusted loss before interest and taxes for the fourth quarter, as the COVID-19 pandemic weighs down aircraft demand. Bombardier shares retreated six cents, or 8.2%, to 67 cents.
Restaurant Brands International reported quarterly revenue above Wall Street estimates, as the Burger King parent continues to ride high on the strength of the popular chicken sandwich from its Popeyes chain. Restaurant Brands stock tumbled $2.94, or 3.9%, to $73.36.
What’s more, Scotiabank raised the target price on WSP Global to
$125.00 from $115.00. WSP shares gained 44 cents to $116.89.
CIBC raised the target price on Canopy Rivers to $4.00 from $1.60. Canopy Rivers ditched 44 cents, or 12.7%, to $3.02.
RBC raises target price on Precision Drilling to $42.00 from $32.00. Precision Drilling took on 29 cents, or 1%, to $29.09.
ON BAYSTREET
The TSX Venture Exchange fell sharply, 11.96 points, or 1.1%, to 1,052.89.
All but three of the 12 TSX subgroups lost ground, with health-care stumbling 8.6%, while consumer discretionary skidded 0.8%, and gold dulled in price 0.4%.
The three gainers were energy, up 0.9%, financials, improving 0.6%, and real-estate, inching up 0.2%.
ON WALLSTREET
U.S. stocks inched higher on Thursday led by the technology sector, as the market looked to continue February’s momentum.
The Dow Jones Industrials added to Wednesday’s closing high, tacking on 26.58 points to 31,464.38.
The S&P 500 restored 7.06 points, or 0.2%, to 3,916.43. Tech was the best-performing sector, rising more than 1%.
The NASDAQ Composite recovered 44.74 points to begin Thursday at 14,015.89, as Microsoft, Apple and Facebook climbed.
On the data front, new claims for jobless benefits came in at 793,000 last week, worse than an estimate of 760,000 from economists polled by Dow Jones.
Federal Reserve Chairman Jerome Powell said Wednesday that the economy faces challenges in the labor market, and so monetary policy needs to stay “patiently accommodative.” In remarks at the Economic Club of New York, Powell said the employment picture is a “long way” from where it needs to be.
Investors also took comfort in a solid earnings season. Of the S&P 500 components that have reported earnings thus far, more than 80% have topped Wall Street’s expectations, according to analysts.
Prices for 10-Year Treasurys backpedaled, propelling yields to 1.15% from Wednesday’s 1.12%. Treasury prices and yields move in opposite directions.
Oil prices dipped 14 cents to $58.54 U.S. a barrel.
Gold prices took on a dollar to $1,843.70 U.S. an ounce.
