Canadian stocks slipped on Wednesday after two days of gains, as a rally in energy producers stalled and Valeant Pharmaceuticals International Inc. resumed its decline.
The S&P/TSX composite index sank 48.49 points to close Wednesday at 13,661.82
The Canadian dollar plummeted 0.57 cents at 75.99 cents U.S.
Valeant lost 5.1% to $121.20 after being named as the focus of a probe in the U.S. Congress.
Data today indicated that Canada’s imports fell for the first time in five months, narrowing the nation’s merchandise trade deficit for September, confirming that Canada, the world’s 11th largest economy, is finding its footing after lower oil prices shocked the economy in the first half of the year.
The trade data was tempered by an announcement from the Petroleum Services Association of Canada on Tuesday that Canadian oil companies will reduce drilling activities next year as crude oil prices struggle around $50 U.S. a barrel. Canada’s energy sector is a key component of its economy.
On the economic scene, Statistics Canada reported that our imports declined 1.3% in September while exports increased 0.7%.
Consequently, Canada's merchandise trade deficit with the world narrowed from $2.7 billion in August to $1.7 billion in September.
ON BAYSTREET
The TSX Venture Exchange nicked up 0.88 points to 542.16.
Nine of the 13 TSX subgroups moved lower on the day, as gold faded 1.7%, materials were down 1.3% and energy fell 0.7%.
The four gainers were led by health-care, haler by 2%, information technology, better by 1.6%, and consumer staples, up 1.2%.
ON WALLSTREET
U.S. stocks closed lower Wednesday, after a solid start to November, weighed by a decline in energy stocks and increased confidence in the possibility of a December rate hike.
The Dow Jones industrial average slid 50.57 points to close at 17,867.58, with Merck leading advancers and UnitedHealth and Walt Disney leading decliners.
The S&P 500 fell 9.83 points to 2,099.96, with energy leading eight sectors lower and utilities and information technology the only advancers.
The NASDAQ index faded 9.62 points to 5,135.51
The major averages are still up about 1% week-to-date, with energy the best performing sector for the week so far.
Tesla reported an adjusted quarterly loss and in-line revenue, but focused more on an upbeat production outlook for the electric car maker.
Facebook and Qualcomm are among the firms reporting after the close.
The October Purchasing Managers’ Index services figure came in at 54.8, down from 55.1 in September.
The non-manufacturing Institute for Supply Management report showed 59.1 for October, versus 56.9 in September.
With two days to Friday's non-farm payrolls report, the ADP employment report showed private companies added 182,000 jobs in October.
September's trade deficit came in at $40.8 billion U.S., its lowest level in seven months.
Fed Chair Janet Yellen said Wednesday morning a December rate hike is a "live possibility," depending on the data.
In prepared remarks for her testimony before the House Financial Services Committee on bank regulation and supervision, she said banks are much healthier but problems remain.
Prices for 10-year U.S. Treasuries lost some ground, raising yields to 2.23% from Tuesday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.39 a barrel to $46.51 U.S.
Gold prices faded $9.99 to $1,107.80 U.S. an ounce.
Related Stories
