Canadian stocks confounded the experts and enjoyed a stronger open on Wednesday, even after weak U.S. economic data raised concerns about the outlook for North American growth.
The S&P/TSX composite index gained 58.20 points to open Wednesday’s trading at 14,135.67
The Canadian dollar dropped 0.61 cents to 90.71 cents U.S.
Canadian Natural Resources Ltd said it would buy some of Devon Energy Corp's liquids-rich natural gas assets in Canada for $3.13 billion. Shares in Natural Resources gained $1.72, or 4.4%, to $40.90.
Yamana Gold Inc reported a net loss for the fourth quarter on Tuesday due to a $535.8-million after-tax impairment charge it booked on several exploration and producing properties partly caused by the drop in metal prices. Yamana shares were off two cents to $11.50
BlackBerry CEO John Chen fired a salvo at T-Mobile US Inc. on Tuesday, calling ill-conceived a promotion run by the company that encourages customers using BlackBerry smartphones to upgrade to iPhones. BlackBerry retreated 26 cents to $10.11
On the economic front, Statistics Canada reported that wholesale trade for December stumbled 1.4% to $49.6 billion, a six-month low. Of the seven wholesale subsectors, five were down, representing 79% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange hiked 7.35 points to 1,009.80.
All but four of the 14 Toronto subgroups were up in early morning trade, with energy stocks leading the way, up 0.9%, while materials and gold stocks each climbed 0.8%.
The four laggards were weighed most by information technology, dipping 0.5%. while consumer staples subtracted 0.3%, and utilities dipped 0.2%.
ON WALLSTREET
Stocks were flat in early trading Wednesday, as investors grappled with disappointing economic data and awaited minutes from the Federal Reserve's last meeting.
The Dow Jones Industrial Average acquired 25.82 points to open Wednesday at 16,156.22.
The S&P 500 index grew 4.66 points to 1,845.42. The NASDAQ dipped 6.05 points to 4,266.72.
The broader market may be down. But some prominent stocks were moving higher. Shares of Zale surged about 40% after Signet Jewelers unveiled a deal to acquire the Dallas-based jewelry retailer for $21 a share. Signet shares soared nearly 13%.
GPS device maker Garmin reported an increase in quarterly earnings on a slight drop in revenue, sending shares up 10%.
Spirit Airlines shares gained ground after the discount airline said that it more than doubled its adjusted net income for the quarter.
On the downside, Herbalife shares slipped even after the controversial seller of nutrition products, reported a double-digit percentage jump in quarterly profit, fueled by sales in China. Hedge fund manager Bill Ackman has been claiming that Herbalife is a pyramid scheme and has been betting against the company for over a year.
Tesla will report results after the close. The electric car maker already said it sold a higher number of its Model S sedan in the fourth quarter. Investors are hoping for more news from CEO Elon Musk about plans to expand in China and introduce new models.
On the economic front, housing starts fell sharply in January, as bad winter weather took a hit on construction.
Investors were also cautious ahead of the Fed's minutes from its January meeting, when the central bank decided to further reduce, or taper, its monthly bond purchases. That was also Ben Bernanke's final meeting as Fed chairman.
Though last month's decision to continue to cut back on its stimulus measures was unanimous among the Fed's 10 voting members, investors will be looking for hints on how the Fed may act in future months.
New Fed chair Janet Yellen strongly suggested in testimony before the House last week that she was likely to stick with the Fed's current plan to gradually taper.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.68% from Tuesday’s 2.71%. Treasury prices and yields move in opposite directions
Oil prices inched up 12 cents to $102.55 U.S. a barrel.
Gold prices slid $2.60 to $1,321.80 U.S. an ounce.
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