The Toronto stock market was little changed Wednesday amid rising concerns that a partial U.S. government shutdown will last longer than thought and inflict serious damage on the economy.
The S&P/TSX composite index fell 8.44 points to finish the day’s trading at 12,839. Losses were limited by a strong showing in the gold sector as bullion's attraction as safe haven investment pushed prices higher.
The Canadian dollar sagged 0.06 cents to 96.78 cents U.S.
The telecom sector declined with Rogers Communications off 42 cents to $43.93.
The financials sector fell as Sun Life Financial gave back 25 cents to $32.87.
The energy sector was also down.
Prices accelerated after three days of declines amid a report that the southern leg of TransCanada's Keystone XL pipeline will be finished this month.
Bloomberg News cited an interview with Les Cherwenuk, project director for TransCanada, who said that the completion of that portion of the pipeline would bring oil from delivery hub Cushing, Okla., down to the Gulf Coast and would continue to reduce high storage levels. TransCanada shares slid two cents to $45.18.
Cenovus Energy declined 50 cents to $30.31.
The gold sector rose as Barrick Gold Corp. advanced 42 cents to $19.02.
The base metals sector turned positive, with December copper up four cents to $3.32 U.S. a pound. Teck Resources gained 47 cents to $27.88.
Elsewhere, BlackBerry shares eked ahead eight cents at $8.27 on the TSX, recovering early losses of over 4% following reports that U.S. private equity firm Cerberus Capital aims to sign a confidentiality agreement to access the smartphone maker's books. The move wouldn't guarantee Cerberus would actually make an offer for the company.
Earlier, the Globe and Mail reported that BlackBerry is looking at tapping the value of its extensive real estate holdings in the Waterloo, Ont.,-area to raise cash. It said that BlackBerry has asked for ideas to generate the largest possible return from its real estate in as little time as possible, through a confidential process begun last week.
ON BAYSTREET
The TSX Venture Exchange forged ahead 5.29 points to 943.48
Nine of the 14 Toronto subgroups were higher, led by materials, up 1.2%, gold, up 0.8%, and metals and mining, gaining 0.7%.
The five laggards were weighed mostly by energy, off 0.7%, telecoms, down 0.6%, and financials, sliding 0.5%.
ON WALLSTREET
After rising on the first day of the U.S. government shutdown, investors are becoming more alarmed about the ramifications of the political stalemate in Washington.
The Dow Jones Industrials fell back 58.56 points – well off its lows of the day -- to finish at 15,133.10
The S&P 500 index dipped 1.23 points to 1,693.77. The NASDAQ shrank 2.96 points to 3,815.02
The biggest worry now: the potential for a government default on October 17. If Congress fails to raise the debt ceiling, the U.S. government will be unable to pay all of its bills later this month.
Treasury Secretary Jack Lew said Tuesday that the government has started to use the last of its "extraordinary measures" to ensure it stays below debt ceiling.
With Congress unable to agree on a deal to fund the government past Monday, more than 800,000 federal workers are being furloughed without pay this week. In addition, government agencies are curtailing their services, and federal museums, parks and monuments are closed to the public.
Shares of agriculture technology firm Monsanto dropped after the company missed earnings expectations.
Shares of Tesla fell following an analyst downgrade. The stock still remains one of the best performers of the year as individual investors have embraced the maker of the electric Model S.
Many investors and analysts are skeptical of its current value. Even after Wednesday's dip, at $190 U.S. per share, Tesla is overvalued compared to where Wall Street analysts think it should be trading.
Despite a drop in the overall stock market, several Internet companies hit new 52-week highs, including Priceline, Amazon, Netflix and Yahoo
The IPO boom continued this week despite the government shutdown. Three companies debuted and two of them quickly shot higher.
Real estate broker Re/Max jumped more than 20%, and Burlington Holdings, the owner of the Burlington Coat Factory, spiked more than 45%.
But the parent company of the iconic Empire State Building disappointed. Shares of the building's owner, the Empire State Reality Trust, were up just 3% in their debut. And that's after the company priced its offering at the low end of its range Tuesday night.
Payroll processor ADP's monthly report on private-sector jobs showed that the U.S. added 166,000 jobs in September, slightly below expectations. The report has more significance this month than usual. It appears increasingly unlikely that the U.S. government's monthly employment report will be released this Friday because of the government shutdown.
Prices for the 10-year U.S. Treasury gained ground, lowering yields to 2.63% from Tuesday’s 2.65%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.35 to $103.99 U.S. a barrel.
Gold prices leaped $30.70 at $1,316.80 U.S. an ounce.
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