Canadian stocks headed downward Wednesday ahead of Federal Reserve policy meeting results, as gold and other commodity companies weighed most heavily on the market.
The S&P/TSX Composite index stepped back 27.43 points to approach noon Wednesday at 11,637.28
The Canadian dollar strengthened 0.15 cents to 99.82 cents U.S.
In the red, weakening gold miners included a 3.6% fall in shares of Kinross Gold Corp. and 3.2% retreat in shares of Goldcorp Inc.
In earnings, oil and gas producer Talisman Energy Inc. posted a 72% lower second-quarter profit, from a year ago, citing weak commodity prices.
What’s more, Torstar Corp.’s second-quarter net income tumbled 68%. The media and book publishing company said that a soft advertising environment, as well as declines in print revenues, served as drags on the quarter.
Class B shares of Toronto-based Torstar subsequently fell 5.5%.
On the economic front, manufacturing in July reportedly slowed, with the RBC Canadian Manufacturing Purchasing Managers Index slipping to 53.1, from 54.8 the previous month.
Although at slower rates, new orders and output both increased, according to RBC. And for the sixth-straight month the nation saw rising employment in the manufacturing sector, also at a decelerating rate.
ON BAYSTREET
The TSX Venture Exchange dipped 2.96 points to 1,180.12. The Nasdaq Canada index was ahead 2.54 points to 336.33.
In all, eight of the 14 Toronto subgroups were lower at noon. Gold fell 1.1%, materials were down 1%, and industrials shed 0.6%.
The half-dozen gainers were led by health-care, up 1.1%, telecoms, ahead 0.6%, and consumer staples, up 0.4%.
ON WALLSTREET
U.S. stocks were choppy Wednesday, as traders scrambled to uncover the source of a series of unusual trades.
The Dow Jones industrial average remained ahead 41.59 points, to break for lunch at 13,050.27
The S&P 500 surged 3.59 points to 1,382.91. The Nasdaq docked 2.7 points to 2,936.82
Shares of Apple have gained 4% this week amid speculation about a possible stock split and potential for its inclusion in the Dow.
Shares of Time Warner shares dipped after the media giant's reported reduced second-quarter revenue and earnings Wednesday despite improved results at its television networks unit.
Comcast reported better-than-expected earnings and sales figures for the second quarter, as the company added new customers for its Internet and phone services.
Shares of Avon Products fell after the company's second-quarter profit dropped 70% from a year ago and sales fell 9%, coming in below expectations.
Pharmaceutical company Allergan said earnings rose 21% in the second quarter from a year ago. It also announced plans to pay a quarterly dividend of five cents per share. .
Harley Davidson shares sank after the motorcycle maker reported sales growth that disappointed investors, even as profits rose.
The Fed wraps up its two-day meeting Wednesday, and is due to announce the outcome of its latest policy meeting at 2:15 p.m. ET.
Investors are hoping that the central bank will announce some form of stimulus to jumpstart the slowing economy, but expect that it will hold off from more aggressive actions, such as a third round of bond buying, or QE3.
The European Central Bank will take centre stage Thursday, when its Governing Council meets in Frankfurt. Investors are hopeful that the E.C.B. will announce some form of new action, after central bank head Mario Draghi said last week that the institution will do "whatever it takes" to preserve the euro.
On the economic slate, U.S. private-sector employers add 163,000 jobs in July, payroll-processor ADP says. Economists had expected an addition of 125,000 jobs.
The Institute for Supply Management said its Manufacturing Index edged higher in July to 49.8 from 49.7 in June. Economists expected the index to come in at 50.1, according to Briefing.com.
What’s more, the Census Bureau said construction spending rose 0.4% in June, compared with a forecasted 0.5% increase.
The price on the benchmark 10-year U.S. Treasury faltered, raising yields to 1.51% from Tuesday’s 1.49%. Treasury prices and yields move in opposite directions.
Oil for September delivery hiked 62 cents to $88.68 U.S. a barrel.
Gold futures for August delivery rose $1.40 to $1,611.90 U.S. an ounce.
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