The Toronto stock market edged slightly lower Wednesday amid rising commodity prices, a quiet economic calendar and a potential major shift in the Canadian retail landscape.
The S&P/TSX composite index gave back 6.08 points to conclude trading at 14,673.73
The Canadian dollar nicked higher 0.22 cents to 91.91 cents U.S.
U.S. retailer Sears Holdings Corp. is considering selling its 51% interest in Sears Canada as the retailer continues with efforts to turn around its business. Sears Holdings' overall business has been struggling after years of sales declines and it has been closing some unprofitable stores and selling leases in prime locations.
Sears Holdings shares gave up early gains to decline 99 cents to $42.24 U.S. in New York, while Sears Canada shares ran up 54 cents, or 3.4%, to $16.30.
Elsewhere in Canada, Power Financial Corp. says it its first-quarter profits totaled $467 million or 66 cents per share, up from $394 million, or 55 cents per share, in the same quarter of 2013.
Operating earnings totaled $440 million, or 62 cents per share, compared with $407 million, or 57 cents per share, year-over-year.
Revenues at the financial services conglomerate that includes Great-West Lifeco and IGM Financial were $10.58 billion compared with $8.15 billion year-over-year.
Power Financial climbed 22 cents to $34.95.
On the commodity markets, the TSX base metals sector advanced, as July copper gained two cents to $3.16 U.S. a pound. Teck Resources declined 27 cents to $25.29
The gold sector rose as Barrick Gold advanced 11 cents to $18.94
The energy sector edged higher as Imperial Oil gained 18 cents to $53.48
Tech stocks declined with BlackBerry down 12 cents to $8.00.
ON BAYSTREET
The TSX Venture Exchange was higher 3.79 points to 992.14
Eight of the 14 Toronto subgroups were higher, led by gold, up 0.9%, materials, up 0.8%, and the metals and mining group, up 0.5%.
The half-dozen laggards were weighed by information technology, down 1.6%, health-care, down 1.1%, and consumer discretionaries, off 0.3%.
ON WALLSTREET
Wall Street hit the pause button on Wednesday, nudging the market away from recent all-time highs.
The Dow Jones Industrial Average faltered 101.47 points from yesterday’s all-time high finish, to 16,613.97
The S&P 500 dipped 8.92 points to 1,888.53, and the NASDAQ composite index sagged 29.54 points to 4,100.63
The retail sector is in focus, headlined by Sears Holdings, with many companies reporting quarterly results this week.
After initially rallying, Sears fell 1% after the company revealed plans to either unload its 51% stake in Sears Canada or sell the brand north of the border entirely. The announcement comes as Sears struggles to stem the bleeding in its core business.
Macy's logged quarterly earnings that topped estimates by a penny, but the department store's revenue trailed expectations as same-store sales fell 1.6%. Still, the company hiked its dividend by 25% and boosted share buyback plans by $1.5 billion U.S. Macy's shares were recently unchanged on the day.
Wall Street sent Kate Spade soaring 7% into the green, applauding surging sales by the company's ability to swing to a profit amid surging sales for its core brand.
Outside the retail world, tractor company Deere reported profits and sales that topped forecasts, but the company dimmed its outlook amid declining equipment sales.
Sodastream International popped 2% even after the company disclosed a 28% tumble in American sales. Those losses offset growth overseas.
Sony slumped 7% after showing sales rose but projecting a full-year loss of $489 million U.S., its sixth in seven years. The Japanese electronics maker said a big reason behind the jump in sales was favorable foreign exchange rates.
Shares of Fossil, best known for its watches and jewelry, dropped 9% as investors expressed disappointment over the company's declining profits and soaring expenses.
The maker of the "Grand Theft Auto" video games, Take-Two Interactive Software, tumbled 7% as investors lamented a cautious outlook from the company, which overshadowed a solid earnings beat. Rival video game makers Electronic Art and Activision Blizzar also retreated.
After-the-bell earnings are on tap from Cisco Systems and SeaWorld Entertainment. Retailers Wal-Mart and J.C. Penney will steal the earnings spotlight tomorrow.
Transport stocks, which have recently rallied to record highs, were a source of trouble on Wednesday. Names like United Continental, Delta Air Lines and UPS all lost ground.
Inflation hawks may finally have something to crow about. The U.S. Labor Department said producer prices popped 0.6% in April, the biggest jump since September 2012.
Economists had modeled for a softer increase of 0.2%.
Investors will get to see whether or not producers passed those higher prices down to customers on Thursday when the government releases its consumer price index.
Prices for 10-year U.S. Treasuries jumped, lowering yields to 2.54% from Tuesday’s 2.62%. Treasury prices and yields move in opposite directions
Oil prices added 41 cents to $102.11 U.S. a barrel.
Gold prices gained $11.70 to $1,306.50 U.S. an ounce.
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