TELUS, Cronos in Picture
Canada’s main stock index fell for the first time in five sessions on Thursday, as technology stock slid due to weak sentiment stemming from Facebook-owner Meta Platforms’ downbeat forecast.
The S&P/TSX Composite dropped 172.69 points, to 21,189.67.
The Canadian dollar inched ahead 0.11 cents at 78.93 cents U.S.
Among tech stocks, Alithya Group reversed 19 cents, or 5%, to $3.59, while Haivision Systems lost 35 cents, or 6%, to $5.47.
Cannabis concerns also hesitated, with Aurora Cannabis surrendering 27 cents, or 5%, to $5.11, while Cronos Group handed over 20 cents, or 4.3%, to $4.50.
Communications proved the only gaining group, with TELUS Corp. gathering 43 cents, or 1.4%, to $30.68, while BCE picked up 73 cents, or 1.1%, to $67.57.
Bank of Canada Governor Tiff Macklem said on Wednesday there was uncertainty about how quickly inflation would come back down into the central bank’s comfort zone, due to the unique nature of the COVID-19 pandemic.
ON BAYSTREET
The TSX Venture Exchange forfeited 13.35 points, or 1.5%, to 851.70.
All but one of the 12 TSX subgroups remained in the red midday, with information technology sliding 3.9%, health-care down 1.6%, and industrials off 1.2%.
Only communications were positive, gaining 0.8%.
ON WALLSTREET
U.S. stocks fell on Thursday as investors’ renewed optimism on big tech names, driven by a slew of strong earnings, took a turn down after Facebook-parent Meta Platforms reported disappointing quarterly results.
The Dow Jones Industrials remained in negative territory by 253.98 points to pause for lunch Thursday at 35,375.35.
The S&P 500 dropped 63.65 points, or 1.4%, to 4,525.73.
The NASDAQ cratered 328.93 points, or 2.3%, to 14,088.61.
Meta Platforms shares plunged more than 25% after the company’s quarterly profit fell short of expectations. The company also issued weaker-than-expected revenue guidance for the current quarter. It was the biggest drop ever for the Facebook parent.
Other social media names followed Facebook shares lower on Thursday. Snap shares slid 18% and Twitter dropped about 6%.
Thursday’s declines come after the major averages notched a four-day win streak during the regular session Wednesday, led by Google parent Alphabet. Investors bought the dip in tech stocks after shedding their positions throughout January as they braced for potential rate hikes from the Federal Reserve.
Strong earnings from Microsoft, Apple and Alphabet drove investors back into tech, reminding them that fundamentals are still strong, but Meta Platforms’ weak guidance has caused some to reverse course.
Outside of tech, Dow component Honeywell’s shares fell 4.8% after the company beat narrowly on profit but fell short on revenue and provided lower-than-expected guidance.
On the economic data front, U.S. jobless claims came in at 238,000 for the week ending Jan. 29, the Labor Department reported Thursday. Economists polled by Dow Jones expect initial claims to have fallen to 245,000 from 260,000 the week before.
Those numbers followed the release of ADP’s surprisingly downbeat private payrolls data Wednesday. Investors are still looking forward to Friday’s release of non-farm payrolls data. Consensus estimates see a gain of 150,000 jobs, according to Dow Jones, but Wall Street forecasters say the actual tally will be far lower, with one estimating a loss of 400,000 jobs in January.
Prices for 10-year Treasurys sagged, raising yields to 1.83% from Wednesday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices regained 51 cents to $88.77 U.S. a barrel.
Gold prices subtracted $3.70 to $1,806.60 U.S. an ounce.