The Toronto stock market was lower Wednesday as traders doubted the effect of measures by emerging market countries to protect their currencies while awaiting word from the U.S. Federal Reserve on whether it will further taper its bond purchases.
The S&P/TSX composite index remained negative 43.60 points – off its lows of the morning -- to greet noon at 13,644.06
The Canadian dollar regained 0.04 cents to 89.71 cents U.S.
Meanwhile, Canadian Pacific Railway posted quarterly profit of $82 million or 47 cents per share, up from $15 million or eight cents per share a year earlier. Ex-items, earnings per share came in at $1.91, missing estimates by two cents.
Revenue was $1.607 billion, up 7% but also below estimates. Its shares gained $3.30 to $161.45 on a positive outlook for its operating ratio.
The tech sector declined, after CGI Group posted quarterly earnings ex-items of $207.9 million or 65 cents, five cents lower than estimates and CGI shares fell $1.43, or 4%, to $33.80.
The energy sector fell while Canadian Natural Resources fell 52 cents to $35.78.
The base metals index gave back ground as the March copper contract dipped a cent to $3.24 U.S. a pound. First Quantum Minerals lost 32 cents to $20.04.
In the financial sector, worries about growth in emerging market countries pushed bank stocks lower as Scotiabank, the most international of the big Canadian banks, shed 73 cents to $61.14.
The gold sector rose with Goldcorp ran ahead 60 cents to $27.22 while Barrick Gold gained 60 cents to $21.56.
ON BAYSTREET
The TSX Venture Exchange came to within 0.23 points of breakeven to break for lunch Wednesday at 958.40
Eight of the 14 Toronto subgroups were down by noon hour ET, weighed mostly by information technology, down 1.1%, while financials and consumer discretionary stocks shed 0.8% each.
Industrial stocks led the half-dozen gainers, up 1.5%, while gold shone 1.4% brighter and materials improved 0.7%.
ON WALLSTREET
Stocks tumbled early Wednesday as concerns about the financial health of Turkey and other emerging markets have led to renewed fears of a global crisis.
The Dow Jones Industrial Average slid 111.07 points midday to 15,788.05, dragged lower by AT&T and Boeing, which both offered earnings guidance that disappointed investors.
The S&P 500 index deducted 14.31 points to 1,783.65. The NASDAQ let go of 14.77 points to 4,083.19
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 more than 6% following weak quarterly earnings and sales results.
Facebook is due to report in the afternoon.
Apple shares were down again. The stock has been under pressure since the company reported iPhone sales Tuesday that fell short of expectations. Apple briefly dipped below $500 for the first time since October.
Shares of Electronic Arts were higher as investors shrugged off a weak outlook to focus on the earnings and revenue beat.
Overall, the bulk of quarterly results for the companies in the S&P 500 have been better than expected. Of the 114 companies that have reported earnings, 98 have topped analysts' modest expectations, according to S&P Capital IQ.
However, 100 of those companies have issued disappointing earnings guidance.
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 38 cents to $97.03 U.S. a barrel.
Gold prices gained $14.00 to $1,264.80 U.S. an ounce.
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