The S&P/TSX composite index slid 32.83 points to begin Wednesday at 12,717.68
The Canadian dollar took on 0.29 cents to 96.45 cents U.S., as the Bank of Canada kept its trendsetting rate at 1% -- where it’s been since September 2010 -- figuring the economy did better than expected in the first quarter of 2013.
BMO Financial Group says its second-quarter adjusted net income was $997 million or $1.46 a share, three cents short of estimates. Overall net income was $975 million. BMO shares began the day down $1.36 to $62.34.
Real-estate issues had the most trouble finding their footing in the first hour of trading, as RioCan REIT gave back 61 cents, or 2.1%, to $28.05.
Other troubled stocks were to be found in utilities, where TransAlta was 28 cents, or 1.8%, to the bad, at $15.19.
Among stocks gaining ground, gold up-and-comer Aurizon Mines hiked 21 cents, or 5.7%, to $3.88, while Barrick Gold moved six cents higher to $19.94.
Internationally, the slow pace of economic activity was front and centre Wednesday morning after the Organization for Economic Cooperation and Development said that the recession in Europe risks threatening the world's economic recovery.
In its half-yearly report, the OECD said the U.S. economy will continue to outpace Europe, with growth of 1.9% in 2013 and 2.8% in 2014. It projects Canada's growth will be slower than the United States, with a 1.4% advance this year and 2.3% next year.
ON BAYSTREET
The TSX Venture Exchange dipped 0.61 points to 953.80
Of the 14 Toronto subgroups, laggards outdistanced gainers seven to six, with real-estate down 1.1%, utilities off 0.5%, and industrials trailing yesterday’s close by 0.3%.
The half-dozen gainers were paced by gold, up 0.8%, materials, inching up 0.3%, and consumer staples, better by 0.2%. Information technology issues were flat in the first hour.
ON WALLSTREET
U.S. stocks pulled back early Wednesday as optimism about the economy was overshadowed by ongoing concerns the Federal Reserve could curtail its bond buying.
The Dow Jones Industrials dumped 94.87 points to begin the day at 15,314.50. The Dow closed at a record high Tuesday as investors cheered upbeat reports on home prices and consumer confidence.
The S&P 500 index skidded 8.13 points to 1,651.93. The tech-rich NASDAQ Composite faded 17.28 points to 3,471.61
Smithfield Foods shares surged 25% after the pork processor and hog producer agreed to be bought by Chinese meat processor Shuanghui International in a deal valued at $7.1 billion U.S.
The news lifted shares of rival meat processor Tyson Foods.
Service Corporation, which provides "deathcare products and services," announced plans to buy rival Stewart Enterprises for $1.4 billion U.S. Shares of Stewart Enterprises surged in early trading. The deal between two of the larger players in the funeral business is subject to regulatory approval.
Apple shares were slightly higher after an appearance at the AllThingsD conference by CEO Tim Cook Tuesday evening. Cook was evasive about the company's product plans, saying only that the iPhone maker was looking for more "game changers" in its future and that he considered the wearable computing product segment "incredibly interesting."
Citigroup reached a settlement with the Federal Housing Finance Authority in a suit charging it deceived Fannie Mae and Freddie Mac when it sold the housing finance firms mortgage securities during the housing bubble.
Prices for the 10-year U.S. Treasury were flat, keeping yields at Tuesday’s 2.14%.
Oil prices moved lower nine cents to $94.92 U.S. a barrel.
Gold prices regained $5.50 at $1,384.40 U.S. an ounce
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