The Canadian equity market declined on Wednesday, dragged lower by mining and gold stocks.
The S&P/TSX Composite index dropped 38.12 points to approach noon Wednesday at 11,971.78
The Canadian dollar strengthened 0.07 cents to 101.27 cents U.S.
Shareholders in Canada's Progress Energy Resources Corp have approved a takeover bid from Malaysia's state oil company Petronas at $22.00 a share, or near $6 billion, including debt. Progress shares dipped three Wednesday noon to $21.94.
Gold stocks such as Kinross Gold gave back 13 cents to $8.55, and Barrick Gold Corp. shed 75 cents to $36.56.
Canada’s biggest bank, Royal Bank of Canada, gained a dime to $54.27, while rival Bank of Montreal gained 37 cents to $58.30.
On the economic slate, Statistics Canada reports that the Industrial Product Price Index was down 0.5% in July compared with June, due mostly to chemical products and motor vehicles and other transportation equipment.
The agency’s Raw Materials Price Index rose 0.9%, because of higher prices for mineral fuels and vegetable products.
ON BAYSTREET
The TSX Venture Exchange fell 13.23 points to 1,228.65. The Nasdaq Canada erased 2.86 points to 345.02
All but two of the 14 Toronto subgroups were negative by midday. Metals and mining lost 1.4%, while gold and global base metals each fell 1%.
The two gainers were telecoms, up 0.5%, and telecoms, ahead 0.3%.
ON WALLSTREET
Stocks were little changed Wednesday following the latest reports on U.S. economic growth and pending home sales.
The Dow Jones industrial average crept higher 5.62 points to break for lunch at 13,108.61
The S&P 500 index moved higher 1.35 points to 1,410.69, and the tech-heavy Nasdaq Composite Index was tentatively higher by 0.85 points to 3,077.99.
Shares of H.J. Heinz faltered after the ketchup maker reported sales that missed forecasts, though growth in emerging markets helped lift earnings higher.
Sealed Air Corp was one of the biggest gainers on the S&P 500. Shares of the company jumped 8% after Sealed Air announced a new CEO and succession plan.
WellPoint shares climbed 7% after the health insurer announced its CEO would resign.
Shares of Joy Global Inc. fell almost 6%, making it one of the biggest losers on the S&P 500. The mining equipment company reported earnings that fell short of expectations and cut its forecast for the year.
Pandora and TiVo will release their earnings after the bell. Pandora is expected to report a loss of three cents U.S. a share on $101 million in revenue, while TiVo is expected to post a loss of 24 cents U.S. a share on $54 million U.S. in revenue.
Meanwhile, oil prices continue to hover near $96 U.S. a barrel, as Hurricane Isaac curtailed oil production along the Gulf of Mexico. But gas prices jumped up 4.8 cents to $3.804 U.S. on Wednesday, according to motorist group the American Automobile Association. Gas prices are now up nearly 9% in August and at their highest level since early May.
Economically speaking, investors digested a report on pending home sales, as well as the August edition of the Federal Reserve's Beige Book report, a regional snapshot of economic conditions.
The report from the National Association of Realtors showed pending home sales at their highest level in two years.
However, the GDP revision, while better than expected at 1.7%, was still weak. And pending home sales are just that: pending.
The Beige Book is due out in the afternoon.
The price on the benchmark 10-year U.S. Treasury fell a bit pushing the yield up to 1.67% from 1.63% late Tuesday. Treasury prices and yields move in opposite directions.
Oil prices for September delivery dove $1.43 to $94.90 U.S. a barrel.
Gold futures for December delivery fell $5.70 to $1,664 U.S. an ounce.
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