Equities in Canada’s largest market fell in volatile trading on Wednesday as shares of banks declined after recent quarterly earnings reports and energy shares slipped after the price of crude oil dropped.
The S&P/TSX composite index fell 101.67 points, to pause for lunch at 15,032.18
The Canadian dollar picked up 0.38 cents to 80.41 cents U.S.
Bank shares have been choppy since the major banks began reporting results last week. It was a mixed quarter overall, with Bank of Nova Scotia capping off the earnings season by posting a weaker-than-expected quarterly profit on Tuesday.
Financials fell as Scotiabank lost 1.2% to $64.99, and Toronto Dominion Bank shed 0.6% to $53.87.
Shares of energy producers gave back ground, as Canadian Natural Resources dropped 2.3% to $36.08, and Suncor Energy slipped 1.4% to $37.02.
Base metals stocks also got bruised, as Teck Resources shares were roughed up $1.03, or 5.3%, to $18.52.
The Bank of Canada announced this morning that it is maintaining its target for the overnight rate at 0.75%. The Bank Rate is correspondingly 1% and the deposit rate is 0.5%.
ON BAYSTREET
The TSX Venture Exchange hesitated 4.68 points to 697.62
All but one of the 14 Toronto subgroups were lower in morning trade, weighed most by global base metals, sinking 2.7%, while metals and mining stocks were off 2.4%, and energy stocks dropped 1.6%.
Only consumer staples bucked the negative trend, inching up 0.3%.
ON WALLSTREET
U.S. stocks traded lower on Wednesday as investors weighed a series of economic data ahead of Friday's employment report that could shed light on the timing of an interest rate hike.
The Dow Jones Industrials stepped back 108.56 points to 18,094.81, with Caterpillar leading declines and McDonald's the greatest advancer.
The S&P 500 removed 11.34 points to 2,096.44, with telecommunications the greatest laggard and health care the only advancing sector.
The NASDAQ index dropped 18.27 points to 4,961.63.
Abercrombie & Fitch and PetSmart reported earnings that beat on both the top and bottom lines.
Smith & Wesson earned an adjusted 20 cents U.S. per share for its latest quarter, nine cents above estimate, and revenue was also above analyst forecasts. Smith & Wesson also raised its guidance for the full year on rebounding demand for consumer handguns.
Bob Evans Farms has decided not to sell or spin off its foods unit, although it has hired JPMorgan Chase to advise on options for its real estate. Bob Evans also reported a weaker than expected profit for its latest quarter, earning an adjusted 60 cents U.S. per share compared to a 71-cent U.S. consensus estimate. Revenue also fell short of analyst forecasts.
Growth in the U.S. services sector accelerated modestly in February, lifted by improvements in new business, Markit said.
The final reading of its Purchasing Managers Index for the services sector rose to 57.1 in February, its highest level since October. The reading was roughly even with the preliminary read of 57.0 but up from the 54.2 recorded in January.
Elsewhere, speaking of items economic, the ADP private payrolls report showed a gain of 212,000 in February, below expectations and the slowest pace since last August. The January private payrolls report was revised up to 250,000.
The ADP data is considered a pre-indicator of Friday's labour market report from the U.S. Bureau of Labor Statistics.
The ISM non-manufacturing index posted 56.9 for February, above estimates of 56.5.
The Federal Reserve releases its Beige Book on the economy at 2 p.m. ET.
Prices for 10-year U.S. Treasuries were down, raising yields to 2.13% from Tuesday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices slipped 39 cents to $49.74 U.S.
Gold prices dipped $2.10 to $1,202.30 U.S.
