The Toronto stock market plummeted Wednesday, with energy stocks selling off amid fresh inventory data showing U.S. crude supplies at 90-year highs. However, investors were encouraged by strong earnings results.
The S&P/TSX composite index jettisoned 231 points, or 1.6%, to close at 14,602.88.
The Canadian dollar also took a bruising, giving up 0.78 cents to 79.88 cents U.S.
Canadian National Railway's quarterly profit surged by nearly a third to $844 million. That amounted to $1.03 per share, six cents ahead of estimates. Revenue was up nearly 17% at $3.2 billion, beating estimates of $3.12 billion.
CN's operating ratio improved to 60.7% and it boosted its quarterly dividend 25% to $1.25 a share. CN stock fell $1.08 to $84.08.
CGI Group says it had $236.3 million or 74 cents a share of quarterly net income, up from 60 cents per share or $189.8 million a year earlier. Cash generated from CGI's operating activities increased more than five-fold to $339.2 million and its shares ran ahead $1.53, or 3.3%, to $48.45.
The TSX energy sector fell as Cenovus Energy lowered its 2015 capital budget to between $1.8 billion and $2 billion because of the price slump. That figure is more than 15% below last year's spending levels. Its stock wilted $1.70, or 6.9%, to $22.97.
The gold sector fell as Goldcorp gave back 72 cents to $29.81.
March copper edged two cents higher to $2.48 U.S. a pound after an eight-cent tumble the previous session and the base metals group was down. Teck Resources dipped nine cents to $15.55.
ON BAYSTREET
The TSX Venture Exchange staggered 9.47 points to 667.30.
All but one of the 14 Toronto subgroups went lower, as energy retreated 4.9%, gold moved down 3%, and information technology skidded 2.2%.
The lone holdout was in the utilities sector, clicking 0.4%. higher
ON WALLSTREET
U.S. stocks declined on Wednesday afternoon, a day after the S&P 500 took its biggest hit in more than three weeks, as investors considered a patient Federal Reserve and oil's fall overrode upbeat earnings from Apple.
The Dow Jones Industrials dropped 195.84 points, or 1.1%, to 17,191.37, with technology the best performing and energy the worst of its 10 major industry groups.
The S&P 500 went south 27.39 points to 2,002.1.
The NASDAQ index forfeited 43.51 points to 4,637.99.
Boeing rose after the jet manufacturer and Dow component posted quarterly profit that surpassed estimates.
Yahoo gained after saying it would spin off its 15% stake in Alibaba Group Holding.
A day after disappointing reports from multi-nationals, Apple's stunning results brought some relief.
The Federal Open Market Committee stuck to its vow to be "patient" on hiking interest rates and raised its view of the economy and labour market, even as the central bank said it anticipates inflation to fall further in the near term.
On Wednesday afternoon, the Federal Reserve concluded its first two-day policy session of 2015, saying the timing of rate hikes depends on economic data.
Prices for 10-year U.S. Treasuries gained sharply, dropping yields to 1.72% from Tuesday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices descended $1.86 per barrel to $44.37 U.S.
Gold prices shed $7.40 an ounce to $1,284.30 U.S.
