TSX Flat Due to Trade Controversy
Canada's main stock index opened subdued on Thursday, as markets took a breather after weeks of trade deal-fueled recovery from April's meltdown.
The TSX Composite Index picked up Thursday from where it left off Wednesday, claiming 61.8 points in the first hour to 25,754.25
The Canadian dollar subtracted 0.06 cents at 71.49 cents U.S.
In corporate news, Strathcona Resources sold its Montney assets for about $2.84 billion and acquired Hardisty Rail Terminal as part of its "core area consolidation" strategy. Strathcona shares charged ahead $2.74, or 10.1%, to $29.87.
Federal Finance Minister Francois-Philippe Champagne said on Wednesday the new Liberal government will table an economic update later in the year, implying no annual budget would be presented in the near term.
On the economic slate, Canada Mortgage and Housing Corporation reports housing starts for all areas in Canada increased 30% in April (278,606 units) compared to March (214,205 units).
Statistics Canada reported manufacturing sales declined 1.4% in March, mainly due to lower sales in the primary metal and petroleum and coal product subsectors. Conversely, the furniture and related product subsector posted the largest monthly gain.
Moreover, wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) rose 0.2% to $86.5 billion in March.
The Canadian Real Estate Association reported the number of sales recorded over Canadian MLS Systems was unchanged (-0.1%) between March and April, marking a pause in the trend of declining activity since the beginning of the year.
ON BAYSTREET
The TSX Venture Exchange eked up 0.33 points to begin the day at 658.98.
All but two of the 12 subgroups prospered in the first hour, with industrials surging 1.1%, while gold and telecoms each marched ahead 0.7%.
Only energy, off 1.8%, and health-care, ailing 0.6%, missed the festivities.
ON WALLSTREET
Stocks fell Thursday, putting the S&P 500 three-day winning streak at risk. The benchmark has been on a tear this week after the Trump administration and China hammered out a temporary suspension of their tit-for-tat tariff dispute.
The Dow Jones Industrials faltered 168.41 points to open Thursday’s session at 41,882.65, weighed down by losses in Walmart and UnitedHealth.
Shares of Walmart dipped 4% after the company said it could raise prices in response to still-high tariffs from the Trump administration. Walmart reported better-than-expected earnings and revenue that matched Wall Street estimates.
The much-broader index dropped 24.75 points to 5,867.83
The NASDAQ Composite crumbled 160.58 points to 18,096.23
Tech giants are putting up a strong showing week to date: Nvidia and Tesla are both up more than 14%, and Meta Platforms has added 10% in the period. Amazon has increased 6% and Alphabet is up more than 8%.
The NASDAQ Composite is higher by 5.9% this week, trailed by the S&P 500, ahead 3.8%, and the Dow, up 1.5%.
Shares of Foot Locker surged 83% after the company announced that it would merge with Dick’s Sporting Goods for $2.4 billion. UnitedHealth slid 14% after The Wall Street Journal reported the Justice Department is probing the insurer.
A UnitedHealth spokesman later told reporters the insurer has not been notified by the DOJ of the “supposed” investigation reported.
Traders also assessed the state of the economy on Thursday, with an unexpected decline in wholesale prices last month. The producer price index for April declined 0.5% month-over-month, the Bureau of Labor Statistics said.
Economists polled by Dow Jones forecast PPI would increase 0.3% on the month. Retail sales increased 0.1% in April, which matched consensus estimates, while industrial production numbers for April decreased slightly more than expected.
Prices for the 10-year Treasury climbed, lowering yields to 4.49% from Wednesday’s 4.53%. Treasury prices and yields move in opposite directions.
Oil prices capsized $1.45 to $61.70 U.S. a barrel.
Prices for gold regained $9.50 to $3,197.80
