Stocks Falter Once More

Equities in Toronto lurched back into negative country by noon Wednesday, toward more multi-week lows, weighed by losses in resource stocks.

The S&P/TSX Composite Index had ditched early gains to fall 49.8 points and move into noon hour ET Wednesday at 15,905.71

The Canadian dollar rocketed 0.33 cents to 81.39 cents U.S.

Technology company CGI Group was the biggest gainer, rising 3.7% after reporting earnings that beat estimates.

Base metals company Nevsun Resources was the biggest decliner, falling 3.6%, after saying it would suspend its dividend and redeploy capital to growth.

On the economic slate, Statistics Canada reported that gross domestic product increased 0.4% in November – in line with analyst expectations -- with widespread growth across industries as 17 of 20 industrial sectors increased.

Analysts will now look to see whether the details in the report are strong enough to get fourth-quarter growth to the 2.5% pace the Bank of Canada anticipates.

Elsewhere, the agency’s Industrial Product Price Index was found to have edged down 0.1% in December, mainly due to lower prices for energy and petroleum products and primary non-ferrous metal products. The Raw Materials Price Index decreased 0.9%, primarily due to lower prices for crude energy products.

ON BAYSTREET

The TSX Venture Exchange regained 8.61 points, or 1%, however, to 866.94

Seven of the 12 TSX subgroups had turned negative by noon hour, as energy lost 0.8% of its spark, while consumer staples and materials each shed 0.5%.

The five gainers were led by health-care, stronger by 1.6%, while information technology improved 1.3%, and telecoms inched up 0.1%.

ON WALLSTREET

U.S. stocks traded sharply higher on Wednesday, rebounding from a strong two-day selloff as corporate earnings keep beating expectations.

The Dow Jones industrial average came off its highs of the morning, but remained positive 113.62 points to 26,190.51, with shares of Boeing contributing more than half of those gains. The aerospace giant's stock popped 5.7% and reached an all-time high.

The S&P 500 improved 2.6 points to 2,825.03, with industrials as the best-performing sector.

The NASDAQ regained 8.39 points to 7,410.87

Boeing, Eli Lilly and, Anthem among the latest companies that reported quarterly results. Their earnings and revenues topped analyst expectations. Thus far, corporate earnings have mostly surpassed analyst expectations.

Of the S&P 500 companies that had reported as of Tuesday morning, 80% have posted better-than-expected earnings, while 81% have beaten top-line estimates, according to Thomson Reuters

In economic news, Wall Street also turned to Washington with the Federal Reserve scheduled to release its latest monetary policy decision at 2 p.m. ET. Market expectations for a rate hike were just 5.2% on Wednesday.

In economic news, ADP and Moody's Analytics Wednesday said private companies added 234,000 jobs in January. Economists expected a gain of 185,000. The report serves as a preview to the U.S. government's monthly jobs report, which is scheduled for release Friday morning.

Other data released Wednesday included the Chicago purchasing manager's index, which fell slightly in January, and pending home sales, which rose 0.5% in December.

Prices for the benchmark 10-year Treasury note were lower, raising yields to 2.74% from Tuesday’s 2.72%. Treasury prices and yields move in opposite directions.

Oil prices docked 23 cents a barrel to $64.27 U.S.

Gold prices strengthened $4.70 to $1,344.70 U.S. an ounce.