Stock markets in Toronto were pretty much unchanged on Wednesday, despite news that U.S. President Barack Obama has tapped Janet Yellen to head the Federal Reserve, though concerns over the impact of a budget deadlock could put a lid on gains.
The S&P/TSX composite index moved up 12.51 to begin the day at 12,704.92
The Canadian dollar dipped 0.13 cents to 96.30 cents U.S.
Mexico's government will tender three passenger train projects next year worth 97 billion pesos, two of which will service the capital's sprawling metropolitan area. Bombardier will likely bid on each of the rail projects, the company's Mexico chief said in June. Bombardier stock was flat at $4.78.
Piper Jaffray raised the price target on the U.S. listed shares of Agrium Inc. to $93 from $90, saying the recently-closed Viterra acquisition and the Vanscoy potash expansion project represent company specific growth catalysts over the next two years. Agrium’s Canadian shares, meanwhile, dipped 24 cents to $87.34.
Credit Suisse cut the target price of the U.S. listed shares of Ritchie Bros. Auctioneers Inc. to $18 from $20 after the company's announcement that the CEO is stepping down in 2014. Ritchie stock in Canada faded 37 cents a share to $19.60.
ON BAYSTREET
The TSX Venture Exchange fell 5.35 points to 934.01
Nine of the 14 Toronto subgroups were higher to begin the day, with global base metals advancing 0.9%, while real-estate and telecoms moved up 0.7% each.
The five laggards were weighed mostly by gold, down 1.2%, materials, off 0.8%, and health-care, down 0.2%.
ON WALLSTREET
The government is still shut down, and there's been little progress on raising the debt limit. But there was one bit of news from Washington that kept investors from dumping stocks again.
Janet Yellen's nomination as next chair of the Federal Reserve helped stabilize, if not necessarily excite, Wall Street.
The Dow Jones Industrials poked ahead 0.22 points to begin Wednesday’s session at 14,776.80
The S&P 500 index nicked up 0.29 points to 1,655.74. The NASDAQ was down 24.60 points to 3,670.24
The Dow Jones industrial has dropped more than 350 points since the shutdown of the federal government began on Oct. 1.
Alcoa shares rose after the aluminum producer's profits beat expectations.
Shares of Yum! Brands, meanwhile, tumbled after the operator of KFC, Taco Bell and Pizza Hut reported weak earnings and continued problems in its China division.
Costco missed on revenue and reported a slight bump in same store sales. Earnings per shares came in better than expected. The stock was down in early trading.
Retailer Family Dollar beat earnings forecasts, while revenue was roughly in line with estimates. But shares fell on a relatively weak outlook.
Men's Wearhouse shares spiked even though the company's board rejected a $2.4-billion U.S. bid from smaller rival Jos. A. Bank Clothiers, setting the stage for another nasty battle for the men's apparel retailer.
Yellen will be nominated by President Obama at 3 p.m. ET. She has long been a favoured candidate for the position and shares much of current chairman Ben Bernanke's thinking on loose monetary policy.
An hour before the Yellen announcement, investors will get a look at the minutes of the Federal Reserve's most recent policy meeting.
The document will be closely scrutinized for clues about the central bank's plans for its bond-buying program.
Prices for the 10-year U.S. Treasury were flat, keeping yields at Tuesday’s 2.64%. Treasury prices and yields move in opposite directions.
Oil prices shed $1.01 to $102.48 U.S. a barrel.
Gold prices shed $16.70 to $1,307.90 U.S. an ounce.
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