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Stocks Take Hit
Canada's main stock index opened lower on Thursday due to losses led by mining stocks, as uninspiring earnings from Wall Street tech giants dampened sentiment, while investors analyzed domestic GDP data.
The TSX stumbled 231.63 points, or 1%, to begin Thursday at 24,276.16.
The Canadian dollar edged up 0.02 cents to 71.92 cents U.S.
Canadian Natural Resources posted a drop in third-quarter profit due to a decline in production and lower crude prices. Shares in the oil giant grabbed 53 cents, or 1.1%, to $48.03.
On the economic calendar, Statistics Canada says gross domestic product was essentially unchanged in August as increases in services-producing industries were offset by declines in goods-producing industries.
Elsewhere, other figures showed the number of employees receiving pay and benefits from their employer—measured as "payroll employment" in the Survey of Employment, Payrolls and Hours—was little changed in August (+13,500), following an increase of 39,500 (+0.2%) in July and a decline of 22,900 (-0.1%) in June. On a year-over-year basis, payroll employment was up 176,700 (+1.0%) in August.
ON BAYSTREET
The TSX Venture Exchange subtracted 9.77 points, or 1.6%, to 603.63.
All but one of the 12 TSX subgroups were in the red, with gold sliding 2.7%, materials down 2.3%, while information technology clicked 1.7% lower.
Only health-care held out against the negative tide, gaining 2%.
ON WALLSTREET
Stocks slid on Thursday as Wall Street digested discouraging quarterly reports from megacap technology names and awaited further results.
The Dow Jones Industrials fumbled 191.94 points at 41,848.60.
The S&P 500 index staggered 76.54 points, or 1.3%, to 5,737.13
The NASDAQ gave up 388.55 points, or 2.1%, to 18,219.38.
Microsoft shares slid more than 5% after the tech giant’s revenue guidance disappointed investors and overshadowed a quarterly earnings beat. Meta Platforms dropped 2.2% after the Facebook parent missed the Street’s expectations for user growth and warning that capital expenditures will significantly rise in 2025. To be sure, Meta managed to beat on both top- and bottom-lines in the third quarter.
Tech earnings continue on Thursday with results from megacap stocks Apple and Amazon due after the bell.
The latest personal consumption expenditures price index showed inflation rose at an annualized pace of 2.1% in September, arriving in-line with estimates and moving closer to the Federal Reserve’s 2% target. The PCE reading is the Fed’s preferred inflation gauge.
Prices for the 10-year Treasury dropped by the close, raising yields to 4.32% from Wednesday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices jumped 81 cents to $69.42 U.S. a barrel.
Prices for gold cratered $40.60 an ounce to $2.760.20 U.S.
