Stock markets in Toronto endured a lower open Wednesday, with investors cautiously awaiting the possibility of a further taper of the U.S. central bank's bond-buying program.
The S&P/TSX composite index toppled 67.72 points to open for business Wednesday at 13,619.94
The Canadian dollar regained 0.15 cents to 89.81 cents U.S.
Canadian Pacific Railway reported a five-fold jump in fourth-quarter profit, as freight revenue rose 7%. CP shares hiked $2.18, or 1.4%, to $160.33.
Canaccord Genuity cut the target price on Bell Aliant to $26 from $27 on reduced EBITDA forecasts due to pricing pressures. Bell Aliant shares slid 40 cents to $26.11.
Nomura cut the target price on First Quantum Minerals to $19 from $20, attributable to the company's Cobre Panama project review coming in worse than expected with higher capex and a two-year delay. First Quantum docked 31 cents to $20.05.
CIBC raised the price target on Metro Inc. to $70 from $69, saying the grocer's first-quarter results were better than expected, sees it increasing prices to drive sales. Metro shares skidded $1.61, or 2.5%, to $63.64.
ON BAYSTREET
The TSX Venture Exchange sank 3.68 points to start out trading Wednesday at 954.95
All but four of the 14 Toronto subgroups were lower in the first hour, weighed by information technology, down 1.8%, while energy and global base metals were each down 1%.
The four gainers were led by gold, up 1.5%, materials, ahead 0.6%, and utilities, up 0.1%.
ON WALLSTREET
Stocks tumbled early Wednesday as investors reacted to disappointing earnings and worries about Turkey and other emerging markets.
The Dow Jones Industrial Average slid 140.51 points to start the day at 15,788.05, dragged lower by AT&T and Boeing, which both offered earnings guidance that disappointed investors.
The S&P 500 index deducted 14.68 points to 1,777.82. The NASDAQ let go of 34.37 points to 4,063.59
Earnings also continued to be a big focus.
Dow Chemical reported better-than-expected earnings and sales, raised its dividend 15% and boosted its share buyback program to $4.5 billion U.S.
Yahoo shares sank following weak quarterly earnings and sales results. Facebook is due to report in the afternoon.
Shares of Electronic Arts were higher as investors shrugged off a weak outlook to focus on the earnings and revenue beat.
Emerging markets were under pressure despite moves by central banks to stabilize volatile currencies.
Investors initially cheered the decision from Turkey's central bank to increase rates following late Tuesday. Central banks in India and South Africa have also raised rates. But the optimism quickly faded.
The Turkish lira, as well as other emerging market currencies like Argentina's peso and India's rupee, have slid in recent months amid expectations that the U.S. Federal Reserve will continue to reduce the pace of its monetary stimulus, which has supported the flow of cash into developing economies.
The Fed will announce its latest policy moves at 2 p.m. ET. It is widely expected to announce a further pullback in its bond-buying program. The meeting is the last for Fed Chair Ben Bernanke, whose term expires at the end of this month.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.72% from Tuesday’s 2.75%. Treasury prices and yields move in opposite directions.
Oil prices slipped 81 cents to $96.60 U.S. a barrel.
Gold prices gained $15.40 to $1,266.20 U.S. an ounce.
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