TSX Sheds Wednesday Gains

Markets in Toronto dived Thursday, wiping off all the gains from the previous session as gold miners tumbled and software firm Lightspeed fell after reporting a weak outlook.

The TSX remained negative 86.59 points to break for lunch at 20,209.84.

The Canadian dollar backed 0.2 cents to 74.05 cents U.S.

Lightspeed Commerce tumbled $2.74, or 13.7% on its worst day in over six months, to $17.26, after reporting a weak quarterly sales forecast, citing caution on near-term macroeconomic pressures.

Among other movers, luxury winterwear maker Canada Goose Holdings forecast strong annual sales, betting on a sharp rebound in key market China, but later reversed course and shed 8.3% after its chief executive said the company expected the U.S. market to be more challenging this year. Goose shares collapsed $2.82, or 10.3%, to $24.67.

National Bank of Canada upgraded its rating on equipment marketplace Ritchie Bros Auctioneers to "outperform" from "sector perform", sending its shares up 4%. Ritchie shares hoisted $3.43, or 4.9%, to $73.13.

Meanwhile, the Bank of Canada said it was worried a major cyberattack on one part of the financial system could quickly spread and threaten overall financial stability.

In the economic docket, Statistics Canada says the national housing price index edged down 0.1% month over month in April. The index has declined six times since August 2022 (at its historical peak). The agency adds prices were down or unchanged in 20 of the 27 census metropolitan areas (CMAs) surveyed, and up in seven CMAs.

ON BAYSTREET

The TSX Venture Exchange dipped 4.13 points to 607.62.

The 12 TSX subgroups were split down the middle, with gold down 2.5%, materials hesitating 1.7%, and energy off 1.1%.

The half-dozen gainers were led by health-care strengthening 2.3%, while information technology clicked higher 0.4%, and industrials added 0.2%.

ON WALLSTREET

Read:

• Global Lithium Supply Under Pressure as South American Nations Discuss "Lithium OPEC"

• International Lithium Buyers Looking to South America to Fill Supply Gaps

• Race to Secure Critical EV Battery Metals Ahead of Chinese Dominance Fully Underway

• Help is on the Way as Rising Alzheimer’s Cases Highlight Urgency for New Treatments

• FDA’s Wave of Fast Track Designations Pushing Momentum in Healthcare Sector in 2023

The S&P 500 and NASDAQ Composite advanced on Thursday as Wall Street traders kept focus on debt ceiling negotiations.

The Dow Jones Industrials slid 32.27 points to conclude Thursday morning at 33,388.50.

The S&P 500 took on 22.15 points to 4,180.92.

The NASDAQ jumped 150.94 points, or 1.2%, to 12,651.51.

Retail giant Walmart helped the market, adding almost 1% on the back of its strong financial report. The company beat Wall Street forecasts on both earnings per share and revenue in its first quarter and raised its expectations for full-year performance.

Truist downgraded Procter & Gamble to hold from buy on Thursday and lowered its price target to $155 from $165 per share.

But sentiment was kept in check as the latest economic data hinted at a resilient economy and as Dallas Fed President Lorie Logan said the latest data doesn’t argue for a pause in rate hikes yet when the Fed next decides rate policy on June 14.

House Speaker Kevin McCarthy told the media on Wednesday that he does not believe the U.S. will default on its debt. President Joe Biden also stated in later remarks that he was confident lawmakers would come together to reach a deal and avoid a default. The president is cutting short a trip to Asia and will return on Sunday, giving traders hope a deal could be done by then.

Prices for the 10-year Treasury crumbled, raising yields to 3.64% from Wednesday’s 3.58%. Treasury prices and yields move in opposite directions.

Oil prices subtracted 84 cents to $72.05 U.S. a barrel.

Gold prices lost $27.70 to $1,957.20 U.S. an ounce.

S&P, NASDAQ Grow with Hope for Debt Ceiling Deal