Energy Stocks Drag TSX Lower Despite Strong Banks -- Canadian Commentary

(RTTNews) - Canadian stocks were little changed Thursday, as plunging energy stocks overshadowed strong bank earnings.

The TSX Composite was down 8.76 points, or 0.06% to 15,410.73, while industrials providing a measure of support.

Royal Bank of Canada (RY.TO, RY) reported second-quarter net income of $2.81 billion, up 9% from a year ago, beating estimates. Shares rose 1 percent.

Canadian Imperial Bank of Commerce (CM.TO) also reported a better-than-expected second-quarter profit. On a per share basis, the company earned $2.64 compared with analysts' estimate of $2.57. Shares slipped 1 percent.

TD Bank (TD.TO) earned $2.5-billion during the second quarter, up 22 percent from a year ago. Shares rose 1.5 percent.

Meanwhile in the financial sector, Manulife (MFC.TO) CEO Don Guloien will retire on September 30. He will be replaced by President Roy Gori as of October 1. Shares rose 0.7 percent.

Florida's Rayonier Advanced Materials (RYAM.N) will buy Canadian lumber company Tembec Inc (TMB.TO) for $807 million. Tembec soared 42 percent.

Aimia shares jumped 17.5 percent after management says investors overreacted to future without Air Canada points. Shares are down 70 percent in 2017.

Crude oil futures plunged Thursday, even after OPEC agreed to keep its own cuts of around 1.2 million barrels per day in place for nine months. However, Nigeria and Libya will remain exempt from making cuts, Bloomberg said, and Iran remains reluctant.

In economic news, Canada's average weekly earnings of non-farm payroll employees were $966 in March, little changed from February and up 0.9% from March 2016.

Yesterday, the Bank of Canada held steady on interest rates despite strong economic growth and concerns about a potential bubble in big-city housing.