Stocks stepped back in the first hour of trading on Thursday, tracking higher crude oil prices, while weaker metals limited the gains.
The TSX descended 94.62 points to open Thursday to 20,404.69.
The Canadian dollar plummeted 0.58 cents to 74.18 cents U.S.
Among company news, Nutrien cut its annual profit forecast as elevated fertilizer prices owed to Western sanctions on Russia and Belarus weighed on demand. Nutrien shares retreated $2.12, or 2.5%, to $82.55.
Manulife Financial reported a quarterly profit that missed analysts’ estimates as the insurer attracted less capital from investors spooked by recent market volatility. Manulife shares forfeited 16 cents to $26.08.
Algonquin Power & Utilities said the power generator would be conducting a strategic review of its renewable group with the objective of enhancing shareholder value. Shares in the utilities nicked ahead 11 cents to $12.04.
ON BAYSTREET
The TSX Venture Exchange slipped 2.19 points to 619.58
Seven of the 12 TSX subgroups were in negative country in the first hour, with materials sliding 1.8%, while gold and energy each slumped 1.4%.
The five gainers were co-led by consumer staples, each up 0.2%, while health-care eked up 0.1%.
ON WALLSTREET
The Dow Jones Industrial Average and S&P 500 fell as Disney shares were under pressure and concerns around regional banks persisted.
The 30-stock index plummeted 372.58 points, or 1.1%, to commence Thursday trading at 33,158.83, following a lower-than-expected wholesale inflation report and earnings from Disney
The S&P 500 index dipped 25.98 points to 4,111.66.
The tech-heavy NASDAQ gave back 29.92 points to 12,276.53.
Disney shares fell more than 5% after the media giant released its fiscal second-quarter results. While higher prices helped its streaming division to narrow its losses, it dealt a harsh blow to subscriber growth. The company also announced it would take on impairment charges of $1.5 billion to $1.8 billion as it removes more content from its streaming platforms.
Investor worry over regional banks once again flared up. PacWest Bancorp, the latest troubled bank in focus, said Thursday in a 10Q filing that deposits fell 9.5% last week. PacWest shares dropped another 22% Thursday. PacWest added that the bank has access to $15 billion in immediate liquidity, if needed.
The producer price index, the Federal Reserve’s preferred inflation gauge that measures wholesale prices, increased just 0.2% in April.
Economists polled by Dow Jones estimated PPI advanced 0.3% last month. The PPI data follows the consumer price index report from Wednesday, which showed inflation rose 4.9% year-over-year, below expectations.
Initial jobless claims grew by 22,000 for the week ending May 6 to 264,000, the U.S. Department of Labor said on Thursday. The latest jobless data was the highest reading since Oct. 30, 2021.
Prices for the 10-year Treasury moved forward, lowering yields to 3.37% from Wednesday’s 3.44%. Treasury prices and yields move in opposite directions.
Oil prices tumbled $1.49 to $71.07 U.S. a barrel.
Gold prices parted ways with 17 dollars to $2,020.10 U.S. an ounce.