Stocks in Toronto fell for a second consecutive day on Wednesday, as weaker-than-expected bank earnings dragged down financial stocks.
The S&P/TSX Composite Index fought back to within 23.19 points of breakeven by the closing bell to 12,740.25.
The Canadian dollar gained 0.54 cents to 73.03 cents U.S.
Still, the TSX remains among the best-performing markets in the developed world this year, trailing New Zealand and topping returns from markets in the U.S., U.K. and Germany.
RBC slumped $1.82, or 2.6%, to $67.81, on first-quarter profit that fell short of analysts’ estimates as earnings from insurance and capital markets fell.
The lender set aside more money for soured energy loans amid crude’s slide. RBC is the third to report results this week, followed by Toronto-Dominion Bank and Canadian Imperial Bank of Commerce Thursday.
TD declined 95 cents, or 1.8%, to $51.23.
Among energy plays, Encana Corp. soared 94 cents, or 22.7%, the most intraday since 2008, to $5.09, as the energy producer cut its annual budget, lowered the dividend and announced another 20% reduction in its workforce as it reported a fourth straight quarterly loss, amid tumbling oil and natural gas prices. Shares had tumbled 41% this year before the announcement.
Health-care stocks rose, led by a $6.02, or 5.5%, gain to $115.42 from Valeant Pharmaceuticals Inc.
ON BAYSTREET
The TSX Venture Exchange stayed positive 1.16 points to 533.74
Seven of the 13 TSX subgroups were higher, as health-care moved upward 4.3%, energy was better by 1.2%, and information technology was up 0.6%.
The half-dozen laggards were weighed most by financials, down 1.7%, metals and mining, down 1.4%, and utilities, clicking lower 0.5%
ON WALLSTREET
Wall Street closed higher Wednesday as some stabilization in oil prices offset declines in financials to help stocks recover from an intraday decline of more than 1%.
The Dow Jones industrial average made its way into the green 53.21 points to 16,484.99, with United Technologies contributing the most to gains and Boeing the chief decliner
The S&P 500 regained 8.37 points to 1,929.64, with financials leading nine sectors lower and telecommunications the only decliner.
The NASDAQ index moved higher 39.02 points to 4,542.61, as Apple gained more than 1% and shares of Facebook turned positive.
The Dow and NASDAQ remained more than 10% below their 52-week intraday highs, in correction
The major U.S. averages extended losses slightly after the Markit Flash February report on services PMI came in at 49.8, down sharply from 53.2 in January and a touch below the key 50.0 level.
New home sales for January hit 494,000, below the expected 520,000
The U.S. Department of Energy's weekly crude inventory data said U.S. oil barrels rose by 3.5 million, about half what the American Petroleum Institute reported late Tuesday.
Prices for the 10-year Treasury sagged, raising yields to 1.75% from Tuesday’s 1.74%. Treasury prices and yields move in opposite directions.
Oil prices strengthened 46 cents a barrel to $32.33 U.S.
Gold prices remained positive $2.45 to $1,229.30 U.S. an ounce.
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