North American stock markets are floundering mid-Wednesday, as investors fret over the U.S. fiscal cliff and Europe's debt crisis.
The S&P/TSX Composite Index had plunged 94.82 points to approach the noon hour Wednesday at 12,039.84
The Canadian dollar gained five-100ths of a cent to 99.81 cents U.S.
Among stocks moving on news today: Rona Inc. shares are up more than 5.8% to $11.62 after major shareholder Invesco Canada Ltd. announced it’s seeking to oust Rona's board.
Loblaw Companies said its third-quarter profit dropped 6%, coming in just shy of analyst expectations. It also announced a 4.8% hike in its dividend. Shares are up 2.9% to $34.33
Teck Resources Ltd. announced it has hiked its dividend by 12.5%. Shares are down 0.6% to $32.63
No major Canadian economic data was scheduled for release Wednesday
ON BAYSTREET
The TSX Venture Exchange dropped 17.22 points to 1,269.67
All but two of the 14 Toronto subgroups broke for lunch in negative territory. Gold slid 1.7%, while utilities stumbled 1.6%, and materials surrendered 1.5%.
The two gainers were consumer staples, up 0.3%, and information technology, clearing breakeven by only 0.04%.
ON WALLSTREET
U.S. stocks edged lower Wednesday ahead of a statement by President Obama on the fiscal cliff and meeting minutes from the Federal Reserve.
The Dow Jones Industrials stepped back 61.11 points to 12,695
The S&P 500 ducked back 4.11 points to 1,370.42, and the Nasdaq Composite Index listed lower 4.50 points to 2,879.39
The selling was kept in check by strength in shares of companies that reported upbeat quarterly results. Shares of Cisco rose 7%, a day after the tech giant reported profits and sales that beat expectations.
Stocks have been under pressure this month as concerns about the fiscal cliff have dominated the market following the election of President Obama. Most investors expect a compromise, but they are not taking any chances until Obama and Republicans in Congress reach a deal to avert the onset of automatic tax hikes and spending cuts that could push the economy into recession.
The president plans to meet with a number of business leaders Wednesday and with congressional leaders Friday to discuss the issue. Obama is expected to make a statement later Wednesday afternoon.
In addition, investors have been rattled by renewed concerns about Greece. The Greek government has been granted additional time to get its fiscal house in order, but has yet to secure the emergency financing it needs to stay solvent.
Facebook shares rose more than 10% as more than 800 million shares became available. Like many initial public offerings, Facebook's May 18 debut included a "lockup" agreement that requires some shareholders from selling for a certain period. On Wednesday, early employees and investors got their first chance to sell about 773 million shares, as well as another 31 million restricted stock units.
Shares of retailer Abercrombie & Fitch shot up 27% after the company reported sales and earnings that blew past expectations, and raised its full-year earnings guidance above even the most bullish forecasts.
Staples shares rose after the company beat the Street on third-quarter earnings but fell short on revenue.
On the economic board, the U.S. government reported retail sales fell 0.3% in October, citing a negative impact from Superstorm Sandy. It was slightly worse than the 0.2% decline forecast by economists.
Meanwhile, prices at the wholesale level decreased 0.2%, according to the Producer Price Index report. They had been expected to increase by 0.1% -- led by higher energy and food prices.
Still to come, the Census Bureau will report data on business inventories for September, which are projected to have increased by 0.6%.
At 2 p.m. ET, the Federal Reserve will post the minutes of its policy meeting from October
The price on the benchmark 10-year U.S. Treasury slid, upping yields to 1.61% from Tuesday’s 1.59%. Treasury prices and yields move in opposite directions.
Oil prices regained 50 cents to $85.88 U.S. a barrel.
Gold prices took on $2.70 an ounce to $1,727.50 U.S.
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