RTTNews - Canadian stocks could continue a downward move on Thursday amid lower commodity prices and disappointing employment data from the U.S. Toronto's main index has finished in the red for three straight sessions and finished yesterday at a 12-day low.
Mining stocks may fall again after losing more than 10% yesterday as copper fell below the key $2 per pound level. The industrial metal has lost 5 cents to $1.976 in Comex trading.
In earnings news in the sector, FNX Mining (FNX.TO) reported a first-quarter net loss of C$26.2 million or C$0.31 per share, compared to net income of C$24.1 million or C$0.28 per share in the same quarter last year.
Denison Mines Corp. (DML.TO) reported a net loss for the first quarter of US$1.33 million or US$0.01 per share, in comparison with a net loss of US$10.46 million or US$0.06 per share in the same quarter a year-ago.
Energy stocks could also fall as crude oil has dropped to $56.90, a drop of $1.27, in electronic trading. Natural gas plunged 18.4 cents to $4.139 per million British thermal units ahead of the Energy Information Administration's inventory report later this morning.
Vero Energy Inc. (VRO.TO) announced first quarter net loss of C$4.7 million or C$0.13 per share, compared to profit of C$3.78 million or C$0.13 per share in the prior year quarter.
Gold and materials stocks could also experience weakness as the precious metal has declined $2.40 to $923.10 per ounce in early Comex trading.
In other corporate news, apparel manufacturer Gildan Activewear (GIL.TO) reported its net income fell to US$7.1 million, or US$0.06 per share, from US$42.1 million, or US$0.35 per share, in the year-ago quarter.
Cascades (CAS.TO) reported first quarter net earnings of C$37 million or C$0.38 per share, compared to a loss of C$4 million or C$0.04 per share in the same quarter of last year.
The U.S. Labor Department said initial jobless claims, a closely-watched measure of layoffs, jumped to 637,000 for the week ended May 9th. This was up 32,000 from the previous week's revised total of 605,000.
A separate Labor Department report showed that the producer price index rose 0.3 percent in April following an unrevised 1.2 percent decrease in March. Economists had been expecting a slightly more modest increase in prices of about 0.2 percent.
Wednesday, the S&P/TSX Composite Index plunged 368.19 points or 3.65% to finish at 9,709.51. The index had reached a seven-month high above 10,300 last week.
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