The Toronto stock market was lower Wednesday afternoon as minutes from the last meeting of the U.S. Federal Reserve last month failed to provide any increased reassurances that the Fed won't soon start to withdraw economic stimulus.
The S&P/TSX composite index dipped 12.76 points to finish Wednesday trading at 13,430.01
The Canadian dollar gained 0.19 cents to 95.71 cents U.S.
The gold sector lost ground while December bullion declined to its lowest close since mid-July. Goldcorp faded 80 cents to $24.51 and Barrick Gold dropped 73 cents to $17.94.
The gold sector is the biggest loser by far on the TSX this year, down about 45%. Gold stocks and the precious metal have fallen out of favour amid improving economic conditions and very low inflation in much of the world, making gold less attractive as a hedge.
Speculation about the Fed tapering its asset purchases also punished gold prices.
The energy sector led gainers, and Canadian Natural Resources gained 83 cents to $34.67.
The base metals sector was flat with December copper unchanged at $3.16 a pound.
On the economic calendar, Statistics Canada says wholesale sales hiked 0.2% to $49.8 billion in September, in contrast to a 0.3% hike projected by economists.
It was the third straight monthly improvement and sales increased in four of the seven subsectors, accounting for 45% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange dropped 8.50 points to 921.15
All but four of the 14 TSX subgroups were negative on the day, weighed mostly by gold, down 3.6%, materials, off 2.1%, and global base metals, down 0.6%.
The four gainers were led by energy, picking up 0.7%, consumer staples, gaining 0.5%, and financials, nicking ahead 0.04%.
ON WALLSTREET
Stocks dipped after minutes from the latest Federal Reserve meeting showed that the central bank could cut back on its bond-buying program even if the job market doesn't improve dramatically.
The Dow Jones Industrials fell back 66.21 points, to end the session at 15,900.80
The S&P 500 index slid 6.48 points to 1,781.39. The NASDAQ dropped 10.28points to 3,948.49.
Struggling retailer J.C. Penney reported a decline in quarterly revenue and same-store sales and a steepening loss compared to the year-ago quarter. But shares surged more than 8% due to brightening hope for the retailer, which said that same-store sales pulled out of the gutter in October.
3-D printing stocks tumbled for a second straight day. The sector has been one of the hottest performers in the market this year. But there are concerns that 3D Systems, voxeljet, Stratasys and Exone may have run up too far too fast.
Deere & Co. reported that quarterly net income easily topped forecasts, but worldwide sales in heavy equipment took a dive during the period. Shares rose thanks to better-than-expected guidance for 2014.
Lowe's reported a double-digit gain in quarterly profit, which CEO Robert Niblock attributed to the strengthening market for home improvement. But shares dipped as results missed forecasts.
Rival Home Depot reported stronger results and guidance on Tuesday.
Yahoo shares continued to rise following the news on Tuesday that the company is boosting its stock buyback by another $5 billion. Traders were pleased.
Green Mountain Coffee Roasters is scheduled to report quarterly results in the afternoon.
The Fed has long maintained that it wants to see a healthier labour market before it would pull back, or taper, its stimulus programs. But according to the minutes, the Fed suggested it could taper for reasons other than substantial improvement in the job market.
Investors have been hoping that the central bank will continue its stimulus program into 2014, extending the $85-billion-U.S.-a-month bond-buying spree that has supported the U.S. economic recovery and helped boost stock markets to record levels.
On the economic front, retail sales for the month of October rose more than expected. Consumer prices were relatively flat for the month, a sign that inflation remains tame.
There was some not so encouraging news about housing, though. The U.S. National Association of Realtors reported that existing home sales in October fell more than economists were expecting.
Prices for 10-year U.S. Treasuries tumbled, raising yields to 2.79% from Tuesday’s 2.71%. Treasury prices and yields move in opposite directions.
Oil prices were unchanged at $93.34 U.S. a barrel.
Gold prices slumped $31.70 to $1,242.80 U.S. an ounce.
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