Stocks in Toronto stubbed their collective toes at the opening on Wednesday, weighed by weaker-than-forecast U.S. economic data.
The S&P/TSX Composite Index slid 23.67 points to begin Wednesday at 11,981.75
The Canadian dollar hiked 0.41 cents at 95.51 cents U.S.
Talisman Energy Inc has drilled a dry well in the Frode prospect in the North Sea, license partner North Energy said. It holds 31.5% in production license 299, while partner Cairn Energy has 28.5%, Dong and North Energy 20% each. Talisman shares eked up seven cents at the outset to $12.25.
Natural Resources Minister Joe Oliver says Canada does not think there would be a net increase in carbon emissions if TransCanada Corporation builds its proposed Keystone XL pipeline from Alberta's oil sands to Texas. TransCanada shares gained 16 cents to $45.36.
Telecom shares suffered in the early going, as Telus got smacked 7.2% to $30.96.
Gold shares were punished, too, as Continental Gold lost 13.6% to $2.86. Barrick Gold’s Canadian shares docked 5% in price to $16.07.
However, some leavening was experienced in the consumer staples field, as Alimentation Couche-Tard jumped 2.3% in price to $62.08.
ON BAYSTREET
The TSX Venture Exchange erased 7.29 points to 875.07
Of the 14 Toronto subgroups, eight were higher, led by consumer staples, up 1.1%, while consumer discretionary stocks and information technology issues each gained 0.6%.
The half-dozen laggards were weighed mostly by telecoms, down 5.6%, gold, falling 4.9%, and materials, weakening 2.1%.
ON WALLSTREET
U.S. stocks opened sharply higher Wednesday as investors bet the weak GDP reading would keep the Fed's stimulus going.
The Dow Jones Industrials added 119.49 points to start the session at 14,879.80
The S&P 500 index gained 14.35 points to 1,602.38. The tech-rich NASDAQ Composite jumped 23.41 points to 3,371.29
Concerns about a cash crunch in China also eased after China's central bank pledged to provide any necessary liquidity to the country's financial institutions
Meanwhile, gold prices fell more than 4% to to a 34-month low, before trimming some of those losses. Gold prices have been dragged down by the market rout accompanying Fed Chairman Ben Bernanke's comments about potentially pulling back on bond buying later this year.
Gold mining companies Randgold Resources and Barrick Gold fell 4% and 5% in early trading.
In corporate news, shares of Smith & Wesson declined even after the gun maker issued earnings and sales guidance well above forecasts.
General Mills slipped after the food company reported earnings in line with forecasts but a weak guidance for the year.
Shares of Apollo Group, which owns for-profit University of Phoenix, slid after the company reporting disappointing quarterly profits.
Monsanto reported better-than-expected earnings and reiterated its outlook, but shares turned lower. Bed Bath & Beyond will report after the markets close.
Pandora shares gained ground after analysts at Cowen and Co. upgraded the company's shares to outperform.
Markets have been volatile lately, driven largely by fears that the Federal Reserve could begin to ease its stimulus measures by the end of the year.
But those fears took a backseat following the Commerce Department's worse-than-expected report on first-quarter gross domestic product, which showed the economy grew just 1.8% during the first quarter. The prior estimate showed an annual increase of 2.4%, and economists were expecting that figure to hold.
Prices for the 10-year U.S. Treasury recovered, lowering yields to 2.52% from Tuesday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices dipped a penny to $95.31 U.S. a barrel.
Gold prices tumbled $39.80 to $1,235 U.S. an ounce
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