Canadian Shares Exhibit Mixed Trend In Cautious Trade

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(RTTNews.com) - The Canadian stock market retreated after a slightly positive start Friday morning, with investors treading cautiously amid mixed economic data and earnings reports.

Worries about global growth weigh on sentiment. Although trade talks between China and the U.S. ended without any concrete results, President Donald Trump said that he would meet Chinese President Xi Jinping and that the trade dispute would hopefully be resolved before the March 1 deadline.

The benchmark S&P/TSX Composite Index is down 15.70 points, or 0.1%, at 15,524.90, after declining to a low of 15,512.67 from a high of 15,548.98.

In economic news, the seasonally adjusted IHS Markit Canada Manufacturing PMI eased to 53.0 in January from 53.6 in December. The latest reading pointed to the weakest improvement in overall business conditions since December 2016.

Despite higher crude oil prices, energy stocks are turning in a mixed performance this morning. The Capped Energy Index is declining 0.33%.

The Capped Materials Index is declining 1.6%. Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO), Agnico Eagle Mines (AEM.TO), Goldcorp Inc. (G.TO), Wheaton Precious Metals (WPM.TO), First Quantum Minerals (FM.TO) and Kirkland Lake Gold (KL.TO) are down 1.3 to 3%.

Kinross Gold Corporation (K.TO), Yamana Gold (YRI.TO) and B2Gold Corp (BTO.TO) are down 1.5 to 3.5%. Eldorado Gold Corporation (ELD.TO) is bucking the trend and moving up by about 4%.

Teck Resources (TECK.B.TO) is down by about 3% after the company lowered its earnings forecast. The company announced today that it currently expects to report earnings and EBITDA for the fourth quarter of 2018 significantly below current consensus estimates. The company expects to report a loss of C$92 million before depreciation and amortization and inventory writedowns in Energy Business Unit, resulting in an after tax loss of C$86 million or C$0.15 per share.

Consumer durables shares Dollarama Inc. (DOL.TO), Great Canadian Gaming Corporation (GC.TO) and Linamar Corporation (LNR.TO) are down 1.3 to 2%. Magna International (MG.TO), BRP Inc. (DOO.TO) and Canada Goose Holdings (GOOS.TO) are modestly lower.

From the healthcare section, cannabis shares are in demand. Aurora Cannabis (ACB.TO) is up 3%, Aphria (APHA.TO) is rising 8.15%, Green Organic Dutchman Holdings (TGOD.TO) is surging up 6.6% and Cronos Group (CRON.TO) is jumping more than 7.5%. Canopy Growth Corporation (WEED.TO) and Hexo Corp. (HEXO.TO) are gaining 0.85% and 0.5%, respectively.

Technology stock Open Text Corporation (OTEX.TO) is gaining more than 4% on strong results. The company announced on Thursday that it generated adjusted EBITDA of $308.3 million in the second quarter, up 6.1% over the year-ago quarter.

Meanwhile, Celestica Inc. (CLS.TO) shares are plunging more than 17%, after the company reported earnings of $0.29 per share, missing forecasts for earnings of $0.31 per share. In the year-ago quarter, the company had registered earnings of $0.27 per share.

U.S. stocks are notably higher, reacting to data showing a stronger than expected job growth in the month of January.

The Labor Department said non-farm payroll employment surged up by 304,000 jobs in January compared to economist estimates for an increase of about 165,000 jobs. The report also showed the spike in employment in the previous month was downwardly revised to 222,000 jobs from the initially reported 312,000 jobs.

Despite the strong job growth, the unemployment rate unexpectedly inched up to 4% in January from 3.9% in December, due to a rise in workers on temporary layoff as a result of the government shutdown.

A report from the Institute for Supply Management showed growth unexpectedly reaccelerated in the month of January. The ISM Purchasing Managers Index climbed to 56.6 in January, from a revised 54.3 a month earlier. Economists had expected the manufacturing index to edge down to 54.0 from 54.1 originally reported for the previous month.

Meanwhile, a report from the University of Michigan showed consumer sentiment in the U.S. dropped by slightly less than initially estimated in the month of January.

European markets were mostly higher on results. Economic data from the region was somewhat mixed. Investors were closely following developments on Brexit and news about Sino-U.S. trade discussions.

Asian markets ended flat. Shanghai jumped 1.3% and the Indian indices ended notably higher after the interim budget proposed some positive measures to boost the primary engine of growth i.e. domestic consumption through income tax sops for nearly 30 million low-income taxpayers and 120 million marginal farmers.

In commodities, crude oil futures for March are up $0.85, or 1.58%, at $54.64 a barrel.

Gold futures for April are down $2.70, or 0.2%, at $1,322.50 an ounce.

Silver futures for March are down $0.072, or 0.44%, at $16.000 an ounce, while Copper futures for March are down $0.0125, or 0.43%, at $2.7720 per pound.

Read the original article on RTTNews (http://www.rttnews.com/2975420/canadian-shares-exhibit-mixed-trend-in-cautious-trade.aspx)

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This article appears in: Stocks , World Markets , Oil
Referenced Symbols: ACB ,

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