Stocks to Resume Downward Trek

Futures for Canada's main stock index dipped on Thursday ahead of crucial trade talks between the United States and China, with investors waiting to see if the world's largest economies can avoid further worsening of the trade war.

The S&P/TSX Composite Index gained 39.65 points to end Wednesday’s session at 16,397.40

The Canadian dollar dropped 0.06 cents to 74.16 cents U.S. early Thursday

June futures retreated 0.2% Thursday.

Canadian Natural Resources reported a better-than-expected first-quarter profit, boosted by higher prices for its crude on the back of Alberta's output curtailments.

Magna International lowered its 2019 profit forecast, as it expects higher costs on certain programs and lower earnings from a transmission joint venture in China.

Canadian Tire reported a 1.7% drop in profit on higher interest expense and lease liabilities.

CIBC raised the target price on Ivanhoe Mines to $3.40 from $3.30

CIBC raised the target price on Park Lawn Corp. to $32.00 from $30.00

Canaccord Genuity raised the price target on Pollard Banknote to $25.00 from $24.50

Economically speaking, Statistics Canada said new house prices stayed put in March, for a second consecutive month.

Also, the agency said, exports rose 3.2% in March, while imports increased 2.5%.

As a result, Canada's merchandise trade deficit with the world narrowed from $3.4 billion in February to $3.2 billion in March.

Economists were calling for a trade balance of around $2.45 billion.

ON BAYSTREET

The TSX Venture Exchange dropped 0.98 points to close Wednesday at 598.25

ON WALLSTREET

U.S. stock index futures were lower on Thursday morning after President Donald Trump said China "broke the deal" at a rally Wednesday evening, fueling worries the U.S. and China will be unable to hatch a trade agreement before new tariffs go into effect at midnight.

Futures for the Dow Jones Industrial Average stepped back 194 points, or 0.8%, to 25,820

Futures for the S&P 500 sank 21.75 points, or 0.8%, at 2,865.50

NASDAQ futures slid 76 points, or 1%, to 7,571.50

Shares of Intel fell another 3% in pre-market on Thursday after sinking nearly 5% in the previous session as the chipmaker said it sees both revenue and earnings per share growing in the "single digit" percentage range over the next three years.

BMO downgraded the stock to market perform from outperform on Thursday, saying it sees the stock "treading water at best."

China claimed it will retaliate if the higher levies are imposed. However, the Chinese delegation is still in Washington this week to negotiate a deal. Despite Trump's ramped-up rhetoric, the White House claimed on Wednesday China still wants to make a deal, which kept the market temporary afloat.

Traders will also keep an eye on upcoming data releases. There will be international trade figures, weekly jobless claims, and producer price index numbers out this morning.

In terms of earnings, Softbank, Norwegian Cruise Line, Booking Holdings, Dropbox, and News Corp. will be updating investors throughout the day.

Overseas, the Nikkei 225 skidded 0.9% Thursday, while in Hong Kong, the Hang Seng Index plunged 2.4%

Oil prices dipped 20 cents to $61.92 U.S. a barrel.

Gold prices gained 60 cents at $1,282 U.S. an ounce.