Canada’s main stock index lost ground on Thursday afternoon as gains in commodity-linked stocks were offset by weakness in tech companies, while retailer Canadian Tire Corp jumped on upbeat corporate earnings.
The S&P/TSX Composite lost 45.07 points to stop for lunch Thursday at 21,338.57.
The Canadian dollar nosed up 0.03 cents at 78.78 cents U.S.
Canadian Tire shares hiked $8.48, or 4.6%, to $193.01, after the retailer beat Wall Street estimates for quarterly profit and revenue, as consumers splurged on sporting goods, garden equipment and home decor during the holiday season.
Russia-backed separatists in eastern Ukraine accused government forces of opening fire on their territory four times in the past 24 hours. The incidents come as Russia has massed more than 100,000 troops close to Ukraine’s borders, raising fears of an invasion.
On the economic slate, Statistics Canada reported foreign investment in Canadian securities totalled $37.6 billion in December, the largest investment since April 2020. At the same time, Canadian investors increased their holdings of foreign securities by $21.3 billion, led by purchases of U.S. instruments.
The Bank of Canada says it will be nimble and potentially “forceful” in tackling uncomfortably high inflation, setting the stage for an aggressive campaign of interest rate increases.
ON BAYSTREET
The TSX Venture Exchange 6.39 points to 863.67.
Seven of the 12 TSX subgroups were facing downward midday, with health-care down 2.2%, information technology off 1.8%, and consumer staples sliding 0.3%.
The five gainers were led by gold, springing 3.1%, materials up 2%, and energy, better by 0.5%.
ON WALLSTREET
Stocks declined Thursday as investors eyed the Russia-Ukraine conflict and digested corporate earnings reports.
The Dow Jones Industrials caved 371.05 points, or 1.1%, to 34,567.22
The S&P 500 fell 50.69 points, or 1.1%, to 4,424.32.
The NASDAQ stumbled 219.68 points, or 1.6%, to 13,904.41.
The selloff in stocks was broad-based, with financials and technology leading S&P 500 sectors lower.
For the week, the S&P 500 is marginally higher and the NASDAQ Composite is up more than 1%. The Dow is the relative laggard, down slightly on the week.
Investors also digested a slew of corporate earnings reports.
Palantir sunk more than 11% after the company missed profit expectations. Nvidia fell more than 8% despite a better-than-expected earnings report as the chip maker’s first-quarter gross margin guidance came in slightly lower than analysts expected.
Walmart topped expectations and reaffirmed guidance, sending its shares up more than 1%. Cisco rose more than 4% after the company also topped estimates and raised guidance. DoorDash saw its shares surge more than 14% after reporting better-than-expected revenue and order numbers.
Ongoing tension at the Russia-Ukraine border continued to impact market sentiment. The U.S. Ambassador to the United Nations said Thursday the conflict had reached a “crucial moment.” Ukraine accused pro-Russian separatists of attacking a village near the border.
On the economic front, weekly jobless claims numbers came in at 248,000, rising from the previous week and above the 218,000 expected, according to a Dow Jones estimate. Housing permits for January showed a surprise increase, but housing starts lagged expectations.
Prices for 10-year Treasurys moved higher, weighing yields to 1.98%, from Wednesday’s 2.03%. Treasury prices and yields move in opposite directions.
Oil prices slipped $1.85 to $91.81 U.S. a barrel.
Gold prices leaped $27.50 to $1,899.00 U.S. an ounce.