TSX Muted with Trade Updates
Canada’s benchmark index was little changed on Thursday, pressured by a decline in gold mining stocks, as investors monitored U.S. trade negotiations and assessed mixed corporate results.
The TSX Composite Index was still lower by three points to break for lunch Thursday at 27,413.41.
The Canadian dollar dipped 0.16 cents at 73.36 cents U.S.
Investors continued to monitor tariff-related developments after Japan reached a deal with the United States, while two European Union diplomats indicated the bloc was moving toward a trade agreement with Washington.
Meanwhile, Trump, who has frequently criticized Fed Chair Jerome Powell for not cutting interest rates more frequently will visit the central bank on Thursday, ahead of next week's meeting where rates are widely expected to be kept steady.
With corporate earnings underway, Teck Resources reportedly beat second-quarter profit estimates on improved profitability at its Trail operations. Teck shares dived $2.33, or 4.4%, to $50.16.
Orla Mining slid $2.49, or 15.5%, weighing on the index at $13.53, while IAMGOLD slid 10 cents, or 1%, to $9.78, while Eldorado Gold waned 34 cents, or 1.2%, to $28.10 and Seabridge Gold gave up a dime to $22.74.
Elsewhere, Loblaw Companies rose $1.56, to $219.07. after beating second-quarter revenue and profit expectations, driven by robust demand for groceries and medicines.
FirstService led gains, rising $25.34, or 10.4%, to $268.40. following strong quarterly results.
In contrast, Mullen Group dropped 54 cents, or 3.9%, to $13.46, after reporting its second-quarter results.
Economically speaking, Statistics Canada reports retail sales decreased 1.1% to $69.2 billion in May.
The agency also says sales were down in three of nine subsectors and were led by decreases at motor vehicle and parts dealers.
ON BAYSTREET
The TSX Venture Exchange shed 4.06 points to approached noon EDT Thursday at 800.42.
Eight of the 12 TSX subgroups had shifted into positive midday, with real-estate climbing 1.1%, energy, rumbling 0.7%, and consumer staples up 0.4%.
The four laggards were weighed most by materials, down 0.8%, gold, slipping 0.6%, and consumer discretionary stocks, off 0.3%.
ON WALLSTREET
The S&P 500 and the NASDAQ ticked higher on Thursday after Alphabet’s latest quarterly results came in better than expected.
The Dow Jones Industrial Average remained in the red 189.12 points, to 44,821.17, bogged down by shares of IBM slipping 8% after its second-quarter software revenue missed expectations.
The S&P 500 index forged ahead 12.84 points to 6,371.75, another intraday high.
The NASDAQ changed gears and jumped 42.04 points to 21,062.05, bolstered by a 1.5% move higher in Alphabet shares after the Google parent posted a second-quarter earnings and revenue beat.
Along with IBM, gains were kept in check by declines in Tesla, which fell 8% after auto revenue fell for a second straight quarter.
Investors also turned their attention to the ongoing feud between President Donald Trump and the Federal Reserve.
The White House said that President Donald Trump will visit the Fed on Thursday, escalating his pressure campaign against Chairman Jerome Powell.
This is the first time in nearly two decades that an American president will make an official trip to the central bank.
Stocks were also helped by a Financial Times report that the U.S. was inching closer to a trade deal with the European Union. Bloomberg confirmed the progress, citing diplomats briefed on the talks. This trade deal would raise tariffs to 15% on imports from the EU.
Prices for the 10-year treasury dipped, raising yields to 4.41% from Wednesday’s 4.37%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.10 to $66.35 U.S. a barrel.
Gold prices handed back $21.40 to $3,376.20 U.S. an ounce.
