Equities in Canada’s largest market fell at the open on Wednesday, led by utilities and consumer staple stocks, as investors waited for the U.S. Federal Reserve's policy decision later in the day.
The TSX faded 64.02 points to begin the midweek session at 20,703.36.
The Canadian dollar docked 0.05 cents at 75.08 cents U.S.
In earnings, Canadian Pacific Railway reported better-than-expected fourth quarter profit overnight. CP shares dived $1.80, or 1.7%, to $103.22.
Information tech company CGI reported better-than-expected first-quarter 2023 results. CGI shares rocketed $7.83, or 6%, to $120.87.
On the economic calendar, the S&P Global Canada Manufacturing Purchasing Managers’ Index recorded 51.0 in January, up from 49.2 at the end of 2022.
ON BAYSTREET
The TSX Venture Exchange nicked up 0.37 points to 626.54.
All but three of the 12 subgroups lost ground, as energy moved backward 1.4%, consumer staples lost 0.7%, and health-care, of 0.6%.
The three laggards proved to be information technology perking 1.9%, consumer discretionary, up 0.6%, and communications, clearing breakeven but 0.03%
ON WALLSTREET
Stocks slipped Wednesday as investors awaited the latest policy decision from the Federal Reserve.
The Dow Jones Industrials tumbled 214.63 points to start Wednesday at 33,871.41.
The S&P 500 fell 10.87 points to 4,065.73.
The NASDAQ Composite slid 19.72 points to 11,564.83.
Corporate earnings season continued. Peloton shares rose more than 8% after the fitness equipment company said its net loss narrowed year over year. Advanced Micro Devices shares gained more than 3% after the semiconductor company reported a fourth-quarter earnings beat.
Meanwhile, Snap shares dropped more than 11% after the social media company posted a disappointing quarterly revenue.
The Fed at 2 p.m. ET will announce how much it is increasing interest rates in its latest effort to tame high inflation, with market participants expecting a 25 basis point bump from the central bank. The Fed’s announcement will be followed by comments from Chair Jerome Powell.
Some indicators that inflation is easing in the broader economy have investors hoping for a more dovish tone from the Fed. On Tuesday, the employment cost index, a measure of wage increases, showed compensation rose 1% in the fourth quarter, less than the 1.1% estimate by Dow Jones.
Prices for the 10-year Treasury faded a bit, raising yields to 3.51% from Tuesday’s 3.50%. Treasury prices and yields move in opposite directions.
Oil prices deleted seven cents to $78.80 U.S. a barrel.
Gold prices skidded $3.80 to $1,941.50 U.S. an ounce.
