The Toronto stock market was little changed Wednesday as investors look to earnings reports and an expected vote later today on raising the U.S. debt ceiling.
The S&P/TSX Composite Index slid 21.96 points to approach midday at 12,802.67
The Canadian dollar fell 0.71 cents to 100.11 cents U.S.
In Toronto, Celestica reported a sharp drop in fourth-quarter profits as the electronics manufacturer was hit by restructuring and other charges and lower revenue as it wound down work for Research In Motion.
Its shares dipped four cents to $8.52 even as president and chief executive officer Craig Muhlhauser assured analysts on a conference call there is a plan to improve profit this year.
In the gold sector, Goldcorp Inc. faded 29 cents to $37.74 while Iamgold ran down 9% to $9.80.
The base metals component fell as March copper was unchanged at $3.70 U.S. a pound. First Quantum Minerals was down 38 cents to $20.54.
Retail stocks led the consumer discretionary component lower as Quebec-based convenience store owner Alimentation Couche-Tard gave back 99 cents to $47.99.
The telecom sector was the major advancer with Telus Corp. ahead 42 cents to $64.98.
In other corporate news, Aurizon Mines Ltd. is urging shareholders reject a $780-million hostile takeover bid by Alamos Gold Inc., which is offering a combination of cash and shares.
The junior miner’s board also says it has adopted a shareholder rights plan to defend against the hostile offer and help give it time to find alternatives. Aurizon shares were unchanged at $4.74 while Alamos shares were up three cents to $15.98.
Speaking of things economic, the Bank of Canada today announced that it is maintaining its target for the overnight rate at 1%. The Bank Rate is correspondingly 1.25% and the deposit rate is 0.75%.
The central bank also said economic growth has been weaker than expected and indicated that the anticipated need to raise rates is now less imminent.
The change in the guidance from last month likely means the central bank won’t move to tighten borrowing costs until some time in 2014 or until it has more compelling evidence the Canadian economy is ready to re-engage.
ON BAYSTREET
The TSX Venture Exchange dipped 2.25 points to 1,238.82
All but four of the 14 Toronto subgroups were lower, weighed mostly by gold, skidding 1.3%, metals and mining issues, down 0.8%, and materials, off 0.7%.
The four laggards were led by telecoms, up 0.4%, health-care and industrials, gaining 0.2% each.
ON WALLSTREET
Stocks traded mixed, even as corporate earnings continue to surprise on the upside.
The Dow Jones Industrial Average were positive 61.98 points to 13,774.20
The S&P 500 shaved off 0.03 points to 1,492.59, this, a day after the Dow and S&P both hit five-year highs.
The tech-heavy Nasdaq Composite added 9.66 points to 3,152.84
Late Tuesday, two of the largest technology companies, IBM and Google, both reported earnings that topped forecasts.
US Airways added to the enthusiasm when it reported earnings Wednesday morning that beat forecasts. Shares of McDonald's ticked down slightly after the company warned that same-store sales could fall in January, but its earnings did top estimates.
Investors are now waiting for Apple and Netflix, which are scheduled to report quarterly results after Wednesday's close.
Apple has been under pressure recently amid concerns about waning iPhone sales. Expectations for earnings vary widely, but many forecasters expect Apple to report a drop in profit for the first time in nine years.
Overall, S&P 500 companies are expected to report earnings growth of 3.8% for the last three months of 2012, according to S&P's Capital IQ.
Still, not all earnings reports have been positive. Luxury retailer Coach disappointed investors. Revenue missed forecasts, and the company said holiday sales were "challenging." Shares fell nearly 15%.
Investors are also keeping an eye on the World Economic Forum in Davos, Switzerland, where business and political leaders have gathered to discuss economic issues. JPMorgan Chase Chief Jamie Dimon who spoke Wednesday, apologized again to shareholders for trading losses the bank suffered on credit derivatives last year, although he said "life goes on."
Prices on the 10-year U.S. Treasury gained some ground, lowering yields to 1.82% from Tuesday’s 1.84%. Treasury prices and yields move in opposite directions.
Oil prices faded 21 cents to $96.47 U.S. a barrel.
Gold prices retreated $6.40 to $1,686.80 U.S. an ounce.
Related Stories
