MONEY IN BRIEF
These are indicative wholesale rates for foreign currency provided by the Bank of Canada on Thursday. Quotations in Canadian funds.
The markets today
Canada’s main stock index closed lower along with U.S. indexes as mixed earnings results put pressure on markets and questions grew about global growth.
The S&P/TSX composite index ended down 123.64 points, or 0.74 per cent, at 16,488.20 as energy and materials stocks weighed.
The resources sectors fell as some producers beat and others missed earnings expectations, while news that the European Central Bank signalled it was open to lowering interest rates raised concerns about the pace of global growth. The energy index closed down 2.9 per cent as major names like Husky Energy closed down 6.13 per cent and Enbridge Inc. was down four per cent. The materials index ended down 1.8 per cent as Cameco Corp. closed down 7.65 per cent.
In New York, the Dow Jones industrial average closed down 128.99 points at 27,140.98. The S&P 500 index ended down 15.89 points at 3,003.67, while the Nasdaq composite was down 82.96 points at 8,238.54.
Major names like Ford Motor Co., Tesla Inc., and American Airlines Inc. fell on earnings and revised guidances, though many companies have beat expectations.
Overall, the earnings picture is still looking positive, said Allan Small, senior investment adviser at HollisWealth.
“I think things look really good, a lot better than before. Now, one can argue that the bar was really low going into this earnings season, so maybe these companies are beating a lowered number from previous, but they’re beating none the less.”
He said that some companies including in the tech sector have seen strong gains so investors might be banking profits.
“I think you’re looking at a market that is at all-time highs and has had a bit of a run here, and I guess some investors took some off the table.”
The Canadian dollar averaged 76.07 cents US, down from an average of 76.12 Wednesday. The September crude contract closed up 14 cents at US$56.02 per barrel and the September natural gas contract was up 2.5 cents at US$2.23 per mmBTU. The August gold contract closed down $8.90 at US$1,414.70 an ounce and the September copper contract was down a penny at US$2.70 a pound.