Canadian Market Recovers From Early Setback, Down Just Marginally

(RTTNews) - Canadian stocks are down in negative territory on Thursday, extending weakness to a third straight session, amid uncertainty about the outlook for U.S. interest rates following data showing stronger than expected U.S. GDP growth in the second quarter.

Technology stocks are among the major losers. Healthcare stocks are also mostly weak. Materials, communications and utilities stocks are finding some support.

The benchmark S&P/TSX Composite Index, which tumbled nearly 220 points to 29,544.81 earlier in the session, was down 21.72 points or 0.07% at 29,735.23 a few minutes before noon.

The Information Technology Capped Index is down nearly 2.5%. Constellation Software, Dye & Durham and Shopify are down 4.9%, 4.3% and 3.4%, respectively. Open Text Corporation, Coveo Solutions, Enghouse Systems, Docebo, CGI Inc., and Descartes Systems Group are down 2 to 3%.

Healthcare stock Bausch Health Companies is down more than 3%. Tilray is down 5%, and Canopy Growth Corporation is down 2.5%.

Ivanhoe Mines, West Fraser Timber, CAE, Canfor, Ballard Power Systems, Air Canada, CCL Industries and Ero Copper are among the other notable losers.

Brookfield Business Partners, Cameco, NovaGold Resources, Parex Resources, SSRMining, Barrick Gold Corporation, BlackBerry, Nutrien, Paramount Resources, Celestica Inc., and ARC Resources are up 2 to 6.5%.

On the economic front, data from Statistics Canada showed average weekly earnings in Canada rose 3.3% year-on-year to C$1,307.86 in July, easing slightly from 3.6% in June.

In U.S. economic news, data from the Labor Department showed initial jobless claims in the U.S. fell to 218,000 in the week ended September 20th, a decrease of 14,000 from the previous week's revised level of 232,000. Economists had expected jobless claims to inch up to 235,000.

The Commerce Department also released separate reports showing an unexpected surge by durable goods orders in August as well as much stronger than previously estimated GDP growth in the second quarter.

On Friday, the Commerce Department is scheduled to release its report on personal income and spending in August, which includes the Fed's preferred readings on consumer price inflation.