The Toronto stock market was higher amid falling commodity prices, glum news from China's financial sector and mixed earnings reports.
The S&P/TSX composite index improved 50.21 points to greet noon at 13,298.27
The Canadian dollar dumped 0.96 cents to 96.24 cents U.S.
Canada's two largest railroads both reported strong earnings results that beat analyst estimates on several key measures.
Canadian National Railway said after the close Tuesday that quarterly profits climbed 6.1% to $705 million. CN also posted adjusted earnings of $1.72 a share, a dime better than estimates.
Revenue came in at $2.7 billion, against estimates of $2.64 billion and its shares ran up $2.44 to $112.19 after hitting a new 52-week high of $112.75.
On Wednesday, Canadian Pacific Railway posted record earnings and the lowest operating ratio in its history in the third quarter as revenue rose by 6% from last year to $1.5 billion.
CP's net income was $324 million or $1.84 per diluted share, up from $224 million or $1.30 per share in the third quarter of 2012. CP's operating ratio improved to 65.9%, down from 74.1 per cent. Its shares jumped $4.86 to $139.60.
Electronics manufacturer Celestica Inc. reported an increase in third-quarter net earnings despite a decline in revenue as a result of last year's loss of its manufacturing contract with BlackBerry. Celestica says net earnings improved to $57.4 million U.S. or 31 cents per share from $43.7 million or 21 cents in the prior-year period.
Revenue slumped to $1.49 billion U.S. from more than $1.57 billion U.S. in the 2012 quarter and its shares gained 35 cents to $11.13.
Encana Corp. says it had $150 million U.S. or 20 cents per share in operating earnings in the third quarter, a big drop from $263 million a year ago but better than expected.
The Canadian natural gas giant also said it is also reducing its 2013 target range for capital spending to between $2.7 billion and $2.9 billion.
Its shares were unchanged at $18.79.
On the economic slate, the Bank of Canada left its overnight interest rate unchanged at 1%, where it’s now been since September 2010.
The bank’s next rate-setting decision is Dec. 4.
ON BAYSTREET
The TSX Venture Exchange erased 5.19 points to 966.49
Eight of the 14 Toronto subgroups were higher, led by industrials, up 3.1%, telecoms, gaining 1.1%, and health-care stocks, up 0.9%.
The half-dozen laggards were weighed mostly by metals and mining, down 1.4%, while global base metals and energy were each off 0.6%.
ON WALLSTREET
Stocks retreated from record highs Wednesday morning as investors focused on corporate earnings, including a dour outlook from economic bellwether Caterpillar.
The Dow Jones Industrials doffed 58.86 points midday to 15,408.80
The S&P 500 index lost 9.05 points to 1,745.62. The NASDAQ backtracked 28.12 points to 3,901.44.
Dow component Caterpillar reported a slump in sales and earnings, noting that a slowdown in the mining sector has taken a bite out of heavy equipment manufacturing. Caterpillar shares were down nearly 6%.
But Boeing, which is also in the Dow, rose 4% after the company reported a surge in quarterly profit and revenue as the aircraft manufacturer works its way through a backlog of orders.
It appears the government shutdown did not have a big impact on defense contractors. Rival Northrop Grumman reported earnings and sales above expectations and raised its outlook for the year. Lockheed Martin also reported strong results on Tuesday, sending its stock sharply higher.
Shares of Broadcom sank 4% after the chipmaker said Tuesday that sales will be below analysts' expectations in the fourth quarter. One trader said Qualcomm might be a better bet in the communications chip sector.
AT&T is scheduled to report after the close.
So far, 80 of the 130 S&P 500 companies have beaten expectations, according to S&P Capital IQ. But many analysts still expect relatively weak earnings for the rest of the year.
Shares of Corning rallied after the company announced a $2-billion U.S. stock buyback, as well as a deal to take full control of a partnership with Samsung Display, which manufactures LCD glass used by makers of smartphones and tablets.
Netflix shares bounced back from a sharp decline Tuesday, even though hedge fund manager Carl Icahn revealed late Tuesday that he had reduced his stake in the company. Despite the rebound, some traders still see more downside ahead for Netflix shares.
Prices for the 10-year U.S. Treasury gained strength, lowering yields to 2.48% from Tuesday’s 2.51%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.16 to $97.14 U.S. a barrel.
Gold prices sank $7.60 to $1,335 U.S. an ounce.
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