Canada's main stock index found its way into the green by noon on Wednesday, after a fall in oil prices dragged the energy sector lower and Bank of Canada's comment that U.S. trade policies were holding back Canadian investments weighed on the market sentiment.
The S&P/TSX Composite Index gained 20.72 points midday to 15,723.41
The Canadian dollar fell 0.37 cents to 75.81 cents U.S.
The largest percentage gainer on the TSX proved to be ATS Automation Tooling Systems Inc, which surged $2.05, or 12.7%, to $18.26, after the company's quarterly results topped expectations.
Aphria Inc fell 98 cents, or 7%, to $13.09, the most on the TSX, after rejecting a hostile takeover bid from U.S. cannabis retailer Green Growth Brands Inc, saying the offer significantly undervalued the company.
The second biggest decliner was fellow cannabis firm, Canopy Growth Co, down $3.40, or 5.3%, to $60.36.
On the economic docket, Statistics Canada reported that Canadian municipalities issued $8.8 billion worth of building permits in December, up 6.0% from November and the fourth consecutive monthly increase.
The gain was largely due to higher construction intentions for multi-family dwellings and commercial buildings, with both components hitting record highs.
Western University’s IVEY School of Business presents its Purchasing Managers Index for January. The PMI measured 54.7 last month, down sharply from the 59.7 issued in December, and off from the 55.2 in January 2018
A deputy governor of the Bank of Canada said despite strong economic fundamentals, uncertainty over the U.S. trade policies is temporarily slowing growth.
ON BAYSTREET
The TSX Venture Exchange gave back 6.73 points to 613.90
Eight of the 12 TSX subgroups remained positive by noon, as consumer discretionary stocks took on 0.7%, while materials improved 0.5%, and utilities gained 0.4%.
The four laggards were weighed most heavily by health-care issues, plunging 3.9%, consumer staples, off 0.6%, and communications stocks, down 0.5%.
ON WALLSTREET
Stocks were little changed on Wednesday as Wall Street digested mixed quarterly earnings results as well as President Donald Trump's second State of the Union address.
The Dow Jones Industrial Average came off its lows of the day, but trailed Tuesday’s close by 31.29 points to 25,380.23, trying to extend its winning streak to four days.
The S&P 500 lost 7.48 points to 2,730.22, on pace to snap a five-day winning streak,
The NASDAQ Composite fell 31.62 points to 7,370.46. Shares of tech-related companies like Facebook, Amazon, Netflix and Google-parent Alphabet all declined at least 0.5%.
Through Wednesday morning, more than 55% of S&P 500 companies have posted quarterly results. Of those companies, 68% have beaten expectations.
General Motors reported better-than-expected results on Wednesday, sending its shares up by about 1%. Walt Disney and Snap also reported better-than-forecast results. Disney slipped 0.1%, however, while Snap surged 27%.
Eli Lilly and Cummins, meanwhile, reported earnings that missed expectations. Ely Lilly dipped 1.3% while Cummins fell 0.9%
Trump addressed issues like infrastructure spending, drug pricing and trade. He also appeared to soften his tone around funding for a border wall along the U.S.-Mexico border. Trump reiterated his belief the U.S. needs a border wall, but did not declare a state of emergency as he had previously threatened to do.
Prices for the benchmark 10-year U.S. Treasury moved higher, lowering yields to 2.69% from Tuesday’s 2.7%. Treasury prices and yields move in opposite directions.
Oil prices revived 40 cents to $54.06 U.S. a barrel.
Gold prices were down $2.80 to $1,316.40 U.S. an ounce.
