The Toronto stock market turned negative on Wednesday as the European economy was dealt another blow from economic concerns in Portugal and political strife persisted in Egypt.
The S&P/TSX Composite Index faltered 32.70 points – though off its lows of the day -- to end Wednesday at 12,145.68
The Canadian dollar regained 0.30 cents at 95.14 cents U.S.
Shares of Canadian wireless companies have been mostly weaker since rumours emerged of a potential new competitor in the domestic industry. Rogers Communications was off 90 cents to $41.47, but Telus rose three cents to $31.69.
Concerning earnings, Sandvine Corp, swung to a $900,000 U.S. profit in the second quarter as the Waterloo, Ont.,-based broadband technology provider posted significantly higher revenues in reversing last year's Q2 loss. Revenues rose 27% to $23.5 million U.S. from $18.6 million U.S. in the same 2012 period. Shares of Sandvine were off 7.6%, or 16 cents, to $1.95.
Utilities took the biggest hit among TSX subgroups, as Canadian Utilities got pounded $1.39, or 3.8%, to $35.35.
Consumer staples also slid, thanks largely to a loss of $1.20, or 2.5%, by drug-store chain Shoppers Drug Mart.
Industrials also took on water, as Westport Innovations fell 89 cents, or 2.6%, to close at $33.48.
China's services sector expanded modestly in June with the vast construction industry acting as a drag on output, in a further sign that the world's second-largest economy is losing momentum.
Two more Portuguese ministers from the junior ruling coalition party were ready to resign, local media said, deepening turmoil that could trigger a snap election and derail Lisbon's exit from a euro-zone/International Monetary Fund bailout.
On the economic docket, Statistics Canada said this morning our merchandise imports fell 3.2% and exports declined 1.6%. So, Canada's trade deficit with the world decreased from $951 million in April to $303 million in May.
ON BAYSTREET
The TSX Venture Exchange gained 4.19 points to 881.18
All but two of the 14 Toronto subgroups were lower on the day, weighed by utilities, down 2%, consumer staples, dipping 1.8%, and industrials, down 1.3%.
The two gainers were in gold, up 0.8%, and materials, up 0.4%.
ON WALLSTREET
U.S. investors were resilient in the face of renewed global worries Wednesday. After bouncing around the breakeven for most of the day, stocks rallied into the early 1 p.m. ET close.
The Dow Jones Industrials gained 56.14 points to 14,988.50
The S&P 500 index picked up 1.33 points to 1,615.41. The tech-rich NASDAQ Composite increased 10.27 points to 3,443.67
U.S. markets will be closed Thursday for Independence Day.
Credit rating agency Standard & Poor's downgraded three European banks -- Credit Suisse, Deutsche Bank and Barclays --- citing worries over the size of their investment banking portfolios and the impact of new regulations. Shares of Credit Suisse and Deutsche Bank closed lower, while shares of Barclays ended up.
The Obama administration's decision to delay implementing some parts of health-care reform hit hospital stocks Wednesday. Shares of Tenet Healthcare, HCA Holdings, Community Health Systems and Health Management Associates dropped between 2% and 4%.
Investors liked what the saw in the job numbers, mostly from the ADP's monthly figure on private-sector payrolls. These figures came in above expectations. First-time unemployment claims came in slightly below forecasts.
Still, investors are waiting for the big jobs numbers due out Friday. Economists predict the U.S. economy added 155,000 jobs and the unemployment rate fell to 7.5% in June.
Prices for the 10-year U.S. Treasury sagged a bit, raising yields to 2.50% from Tuesday’s 2.47%. Treasury prices and yields move in opposite directions.
Oil prices added $1.645 to $101.05 U.S. a barrel.
Gold prices gained $8.80 to $1,252.20 U.S. an ounce.
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