The Toronto stock market was mildly negative at the open Wednesday as weak corporate performances reminded traders of the fragile state of the economic recovery.
The S&P/TSX Composite index dropped 13.76 points to begin Wednesday at 12,103.16.
The Canadian dollar weakened 0.41 cents to 100.71 cents U.S.
Resource stocks will likely lead the TSX lower after mining giant BHP Billiton reported that its annual profit plunged 34.8% from a year ago to $15.4 billion U.S. as a slowdown in global economic growth led to weaker prices for its key commodities.
Revenue for the year was up 0.7% to $72.2 billion U.S.
In corporate news, a letter signed by dozens of independent merchants who operate 164 Rona stores across Canada have written to the head of Lowe’s Companies, saying they are opposed to a takeover of Quebec-based Rona Inc.
The letter, made public Wednesday, says the independents prefer Rona’s approach of combining a network of independents with more than 200 corporate stores.
CAE says it has won a series of military contracts valued at more than $55 million. They include a contract from Airbus Military to develop a full-flight simulator for the Royal Air Force of Oman and a contract to provide maintenance and support services for the Indian Air Force’s Hawk training devices.
Also, Telus Corp. proposed to revive its plan to unify its share structure by converting non-voting shares into common shares on a one-for-one basis.
On the economic ledger, Statistics Canada told us this morning that retail sales eased 0.4% in June, more than offsetting a gain in May. Lower sales were reported in seven of 11 sub-sectors, representing 64% of retail trade.
ON BAYSTREET
The TSX Venture Exchange poked ahead 6.56 points to 1,245.88. The Nasdaq Canada dipped 0.90 points to 347.60.
The 14 Toronto subgroups were evenly divided between winners and losers. Gold hiked 0.7%, while materials improved 0.5% and information technology forged ahead 0.4%.
The seven laggards were laden by consumer staples, energy and consumer discretionary stocks, each down 0.4%.
ON WALLSTREET
U.S. stocks opened slightly lower Wednesday, easing from the four-year highs reached a day earlier, amid concerns about global growth.
The Dow Jones industrial average fell 21.34 points to begin the session at 13,182.24.
The S&P 500 index waned 1.2 points to 1,411.97, while the tech-heavy Nasdaq Composite Index gave back 1.48 points to 3,065.78.
Shares of Toll Brothers rose after the luxury home builder reported surprisingly strong earnings Wednesday morning, signaling further momentum in the U.S. housing market.
Express posted earnings that beating analyst expectations, but net sales fell short of forecasts, sending shares of the retailer lower.
Shares of Williams Sonoma surged after the houseware retailer reported better-than-expected second-quarter earnings and raised its forecast for the rest of the year.
American Eagle enjoyed earnings that were in line with expectations, but the company's forecast for the full year topped Wall Street's forecast.
Dell reported its quarterly results after the closing bell Tuesday. The company posted earnings that beat expectations, but shares slumped on disappointing guidance. Rival Hewlett-Packard will report after the closing bell.
Investors continue to keep an eye on Greece as Prime Minister Antonis Samaras meets with euro-zone officials throughout the week. He is expected to push for a two-year extension of the country's bailout program, which would give the government more time to implement difficult reforms and help get the nation's economy back on track.
Analysts say markets will be looking for any comments out of Samaras' meetings for signs of further stimulus measures.
Back in the States, investors will spend Wednesday poring over the minutes of the latest Federal Reserve meeting, while also digesting a report on existing home sales and the latest round of corporate earnings.
The Fed will release the minutes of its July meeting at 2 p.m. ET.
While the central bank didn't announce any further stimulus measures at its last meeting, investors will look for clues about whether a new round of quantitative easing could be coming when chairman Ben Bernanke speaks at the Jackson Hole, Wyo., symposium at the end of the month.
The National Association of Realtors will release data on existing home sales for the month of July this morning. Sales are expected to come in at an annual rate of 4.55 million, up from June's 4.37 million, according to a survey of analysts by Briefing.com.
The price on the benchmark 10-year U.S. Treasury gained, pushing the yield down to 1.75% from Tuesday’s 1.81%. Treasury prices and yields move in opposite directions.
Oil for September delivery slid six cents to $96.77 U.S. a barrel.
Gold futures for December delivery added a dollar to $1,643.90 U.S. an ounce.
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