Equities in Toronto retreated from another record high the previous day, as financial and energy stocks dropped, oil prices declined and corporate results came in below expectations.
The S&P/TSX Composite Index lost 45.53 points to greet noon at 16,086.26
The Canadian dollar recovered 0.21 cents to 78.57 cents U.S.
Intact Financial fell 4.4% to $102.22 following a disappointing third-quarter report.
Canada’s major banks lost ground, helping to pull down the overall group, about one-third of the index’s weight. Sun Life Financial fell 1.1% to $49.49.
TransCanada Corp slipped 0.9% to $62.02, while Encana Corp fell 2.3% to $15.93 after reported that third-quarter profit declined on lower oil and gas production.
Auto parts makers Linamar Corp, which tumbled 13% to $66.91 after its results missed estimates. Larger rival Magna International Inc lost 1.9% to $68.06.
Agrium Inc fell 2.5% to $135.16 after reporting a bigger-than-expected loss.
The broader materials group, encompassing miners and fertilizer firms, remain unchanged. Offsetting losses, Teck Resources rose 1.9% to $27.95.
ATS Automation Tooling Systems Inc slumped 6% to $14.31 after its results missed analysts’ expectations.
On the upside, Valeant Pharmaceuticals International Inc extended gains in the previous session, rising 6.2% to $19.21.
On things macroeconomic, Statistics Canada revealed Wednesday that building permits rose in September for the first time in three months, as strength in the non-residential sector outweighed some weakness in the residential sector.
The agency says Canadian municipalities issued $7.9 billion worth of building permits in September, up 3.8% from the previous month.
ON BAYSTREET
The TSX Venture Exchange retreated 2.63 points to 793.96
Seven of the 12 TSX subgroups were downward, as information technology dwindled 1.2%, while consumer discretionary stocks were down 0.7%, and financials tailed off 0.4%.
The five gainers were led by health-care, zooming 1.6%, gold, gaining 0.6%, and consumer staples, picking up 0.5%.
ON WALLSTREET
U.S. equities were inconsistent on Wednesday as a decline in bank stocks knocked the major indexes from record levels.
The Dow Jones industrial average came to within 1.31 points of breakeven – off its lows of the morning -- to 23,555.92, with JPMorgan Chase among the worst-performing stocks in the index. JPMorgan fell 1%.
The S&P 500 eked up 0.87 points to 2,591.15, with energy and financials as the biggest declining sectors.
The NASDAQ Composite improved 7.92 points to 6,775.70
The banks fell after Republicans lost key elections in New Jersey and Virginia. These losses increase uncertainty around the GOP's plans to move forward with tax reform.
For the week, the three major indexes are on track to post modest gains as earnings season winds down.
Some of the companies that have reported this week include Snap and Lending Club, which fell sharply as its results disappointed investors.
This earnings season has been a strong one. With 87% of S&P 500 companies having reported, earnings have grown 6.4% year over year, as 74% of companies have surpassed Wall Street expectations
Prices for the benchmark 10-year Treasury note were lower, raising yields to 2.33% from Tuesday’s 2.31%. Treasury prices and yields move in opposite directions.
Oil prices regained 20 cents a barrel to $57.40 U.S.
Gold prices recouped $10.70 an ounce to $1,286.50 U.S.
