Canadian stocks were extending losses for a second session Thursday morning amid sell-offs in commodities and a mixed batch of earnings reports. Meanwhile, economic data from south of the border came in varied. While new claims for unemployment in the U.S. fell by a larger number than predicted in the final full week of April, a report released by the ISM revealed that the pace of growth in the service sector unexpectedly slowed in April.
The S&P/TSX Composite Index surrendered 70.85 points or 0.58 percent to 12,159.27, a day after snapping its five-session winning streak.
Crude oil was suffering steep losses, with crude for June delivery losing $2.29 to $102.93 a barrel.
In the oil patch, Niko Resources (NKO.TO) shed nearly 2 percent.
Oil transportation company Enbridge Inc. (ENB.TO) was trading flat after it confirmed $262 million Enbridge Gas New Brunswick write down as a result of legislation passed by the Government of New Brunswick in December 2011.
The price of gold was extending losses, with gold for June delivery shedding $19.00 to $1,635.00 an ounce.
Among gold plays, Royal Gold (RGL.TO), Barrick Gold (ABX.TO) and Agnico-Eagle Mines (AEM.TO) lost over 2 percent each.
First Quantum Minerals (FM.TO) eased 0.25 percent after reporting first quarter comparative earnings of $119.0 million or $0.25 per share, significantly lower than $206.7 million or $0.48 per share a year ago.
Financial services provider Accord Financial Corp. (ACD.TO) slipped 0.60 percent after reporting a lower first quarter net profit of C$883,000 or C$0.10 per share, compared to C$1.60 million or C$0.18 per share last year.
Insurance services provider Manulife Financial (MFC.TO) eased 0.30 percent even after reporting that its first quarter net income advanced 22 percent to C$1.21 billion from C$985 million a year ago., with quarterly earnings per share rising to C$0.62 from last year's C$0.53. The company announced a quarterly shareholders' dividend of C$0.13 per share.
Apparels maker Gildan Activewear (GIL.TO) posted second quarter net earnings of $26.9 million or $0.22 per share, lower than $61.7 million or $0.50 per share a year ago. Adjusted net earnings were $0.23 per share, compared to $0.53 per share in the second quarter of last year. Analyst expected the company to report earnings of $0.21 per share. Separately, the company said it would acquire 100 percent of the common shares of Anvil Holdings, Inc. for a total purchase price of approximately $88 million The stocks lost over 3 percent.
Communication equipment maker JDS Uniphase Corp. (JDU.TO) reported that its third-quarter GAAP net loss was $17.4 million, or $0.08 per share, compared to net income of $38.6 million, or $0.16 per share for the third fiscal quarter of 2011. On a non-GAAP basis, net income was $25.3 million or $0.11 per share, down from $51.0 million, or $0.22 per share. Analysts were expecting the company to report earnings of $0.11 per share for the quarter. The stock shed 3 percent.
Telecommunications services provider BCE Inc. (BCE.TO) slipped 0.50 percent even after reporting higher first quarter net earnings of C$574 million or C$0.74 per share, compared to C$503 million or C$0.67 per share last year. Adjusted earnings per share were C$0.75 versus C$0.72 in the prior-year quarter. Analyst were expecting the company to report earnings of C$0.72 per share.
Meanwhile, Pharmacy retailer Jean Coutu Group. (PJC_A.TO) gained over 1 percent after posting fourth quarter profit of C$62.0 million or C$0.28 per share versus C$46.5 million or C$0.20 a share last year.
Valeant Pharmaceuticals International Inc. (VRX.TO) gained nearly 1 percent after announcing that it would acquire certain assets from University Medical Pharmaceuticals Corp., a specialty pharmaceutical company focused on skincare products, for around $64 million plus potential milestones based on attainment of future revenue targets.
In economic news from south of the border, the U.S. Labor Department said new claims for unemployment in the U.S. fell by a larger number than predicted in the final full week of April. Initial unemployment claims came in at a seasonally adjusted level of 365,000, a drop of 27,000 from the previous week's revised figure of 392,000. And while the previous week's level of new claims was revised up from the 388,000 initially reported, the drop for the week of April 28 was larger than predicted by most economists who had expected to see new claims come in at 378,000.
Separately, the the Institute for Supply Management said its non-manufacturing index dropped to 53.5 in April from 56.0 in March, although a reading above 50 indicates continued growth in the service sector. The drop surprised economists, who had expected the index to come in unchanged.
Elsewhere, the European Central Bank maintained its key rates at 1 percent, as widely expected.
Meanwhile, a report from the Eurostat revealed that euro zone's producer prices increased less than forecast by economists in March. The producer price index rose 0.5 percent month-on-month in March, slower than 0.6 percent gain in February. Economists had forecast an increase of 0.6 percent. Prices has now increased for three consecutive months.
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