The Toronto stock market was down on Wednesday as questions abound over the timing of the U.S. Federal Reserve's removal of monetary stimulus by tapering off its current bond-buying program.
The S&P/TSX composite index dropped 56.59 points to end Wednesday at 12,412.73
The Canadian dollar erased 0.45 cents to 95.97 cents U.S.
Shares of Athabasca Oil were up 10.3% after the Alberta Energy Regulator signed off Tuesday on the Dover oilsands project. The move green-lights the Brion Energy Corp. to begin construction, subject to 10 conditions related to the operations of the project.
The Dover project was initially opposed by the First Nations on the Fort McKay reserve lands, but the regulator said that the project would have little impact on the band. Athabasca gained 76 cents to $8.13.
Other energy stocks lost ground, mostly Petrobank, which tumbled 5.6% to 51 cents.
Meanwhile, in earnings, Air Canada shares rose 25.9% after the carrier came in far ahead of analyst predictions with adjusted net income of $115 million in the second quarter. The results marked a big improvement from a year earlier when it reported an adjusted net loss of $7 million. The company's stock was up 55 cents to $2.67.
Valeant Pharmaceuticals International Inc. is boosting its guidance for the year after turning out a $11-million profit from a loss in the same period a year earlier. Sales were up nearly 34% to $1.1 billion. Valeant shares increased $2.15 to $101.73.
Metals stocks were battered particularly hard, especially HudBay Minerals, losing 30 cents, or 4.7%, to $6.06. First Quantum Minerals didn’t fare much better, falling 37 cents, or 2.3%, to $15.83.
Among industrials, Westport Innovations slid $1.37, or 4.7%, to $28.00, and Bombardier shrank eight cents, or 1.6%, to $4.82.
On the economic front, Statistics Canada reported that contractors took out building permits worth $6.6 billion in June, down 10.3% from May and the first decrease in six months.
However, the nation’s number-crunchers added that, despite this decline, the total value of building permits continued to trend upward.
Western University’s Ivey Purchasing Managers’ (PMI) by the end of July 2013 stood at 48.4. The corresponding Ivey PMI figure for June 2013 was 55.3; for July 2012, it was 62.8 and July 2011’s was 46.8.
ON BAYSTREET
The TSX Venture Exchange dipped 5.70 points to close Wednesday at 907.13
All but four of the 14 Toronto subgroups were in negative territory by the closing bell, weighed mostly by metals and mining, down 1.1%, while energy stocks slid 0.7%, and industrials slipped 0.6%.
The four gainers were led by materials and gold, each up 0.6%, while health-care stocks inched up 0.2%.
ON WALLSTREET
Stocks were in the red to end Wednesday, amid new talk that the Federal Reserve may soon begin to slow the pace of its controversial asset purchases.
The Dow Jones Industrial Average was lower 48.07 points to close at 15,470.70
The S&P 500 index fell 6.44 points to 1,690.93. The NASDAQ was negative 11.76 points to 3,654.01
Earnings continue to roll in Wednesday. Time Warner raised its guidance and reported a 25% jump in operating income, helped by strong revenue from movie blockbusters like "Man of Steel" and television shows like HBO's "Game of Thrones" and "Girls.
AOL reported earnings and sales that beat estimates, and announced plans to buy video ad startup Adap.tv for $405 million U.S.
Zillow shares tumbled after the real estate website company swung to a second-quarter loss. But Zillow's stock has been on a tear in 2013. Shares are up 200% year-to-date, as investors bet on a housing recovery. Since early July alone, shares have rallied 50%.
First Solar shares plunged a day after the solar panel maker widely missed analysts' estimates for both profit and revenue. First Solar also trimmed its outlook. Shares of rival Solar City also tumbled, but traders were quick to not the differences between the two.
Solar City, which is chaired by Tesla CEO Elon Musk, reports results after the bell. Tesla Motors and Green Mountain Coffee Roasters are also due to report results after the close
Meantime, it appears statements from Chicago Fed President Charles Evans and Atlanta Fed President Dennis Lockhart on Tuesday about the Fed possibly pulling back on, or tapering, its bond purchases as soon as next month continued to spook investors.
Despite the move lower, U.S. stocks have still gained 18% to 21% so far this year.
Prices for the 10-year U.S. Treasury gained some ground, lowering yields to 2.60% from Tuesday’s 2.64%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.03 to $104.27 U.S. a barrel.
Gold prices gained $2.80 at $1,285.40 U.S. an ounce.
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