Equity markets in Toronto were only slightly down on Wednesday, ahead of the end of the U.S. Federal Reserve's two-day policy meeting, at which the central bank is widely expected to reduce the size of its monthly bond purchase program.
The S&P/TSX composite index faded 3.72 points to begin the session at 14,365.26
The Canadian dollar slid 0.45 cents at 89.35 cents U.S.
Blackstone Group LP is working on a higher takeover bid for industrial conglomerate Gates Global Inc, owned by Onex Corp and the Canada Pension Plan Investment Board, after its previous offer of roughly $5.5 billion was turned down, according to sources. Onex shares gained nine cents to $61.00
On the economic beat, Statistics Canada reported this morning that Wholesale sales rose 0.8% to $50.0 billion in January, following a decline in December, with gains recorded in all subsectors except motor vehicle and parts.
Elsewhere, Jim Flaherty, the long-serving Conservative finance minister who helped steer the economy through the global financial crisis, resigned from the cabinet on Tuesday, leaving the country on track to balance its books by 2015. Energy Minister Joe Oliver is tagged by some sources as Flaherty’s replacement.
ON BAYSTREET
The TSX Venture Exchange gathered 4.08 points to 1,043.03
The 14 Toronto subgroups were evenly divided, information technology leading the seven gainers, up 0.7%, while energy and consumer staples each gained 0.4%.
The seven laggards were weighed mostly by metals and mining, down 1.8%, while gold sank 1.1%, and materials eased 0.9%.
ON WALLSTREET
Stocks were in a holding pattern early Wednesday, as Janet Yellen's first meeting in charge of the U.S. Federal Reserve comes to an end.
The Dow Jones Industrial Average was ahead but 10.50 points to 16,346.69
The S&P 500 index slid 0.46 points to 1,871.79. The NASDAQ demurred 12.17 points to 4,321.14.
In corporate news, FedEx blamed "unusually severe winter storms" for quarterly earnings that came in below estimates. But the fact that snow would impact FedEx wasn't that big of a surprise, and shares of the shipping company were modestly higher Wednesday morning.
United Parcel Service reported a similarly poor profit last quarter due to the weather. Both stocks are in negative territory for the year.
Oracle dropped after reporting revenue that fell short of Wall Street expectations.
Shares of Orbitz tumbled 7% after the travel site operator was downgraded to a "sell" rating by analysts at Goldman Sachs.
Horizon Pharma surged after the biotech company said it was buying Dublin-based Vidara Therapeutics International for $660 million U.S. Biotechnology stocks have been on a tear this year, although some of the leading stocks have pulled back lately on concerns about valuations.
The Fed's Open Market Committee concludes its two-day policy meeting this afternoon. Investors are shifting their focus from Russia's takeover of Ukraine's Crimean peninsula to the FOMC.
The Fed is widely expected to continue trimming, or tapering, its monthly bond buying program by another $10 billion, to $55 billion U.S. a month.
The Fed's asset purchases, a policy known as quantitative easing, was created at the height of the 2008 financial crisis to support the U.S. economy. Many experts say it also has been a key driver behind the bull market in stocks for the past five years.
Prices for 10-year U.S. Treasuries listed lower, raising yields to 2.69% from Tuesday’s 2.68%. Treasury prices and yields move in opposite directions.
Oil prices advanced 57 cents to $100.27 U.S. a barrel.
Gold prices shed $14.60 to $1,344.40 U.S. an ounce.
Related Stories
