Stocks in Canada’s biggest financial centre rose slightly on Wednesday, reversing an earlier decline as energy producers climbed with crude after a government report showed U.S. inventories unexpectedly fell.
The S&P/TSX Composite Index added 13.02 points to close Wednesday at 13,788.21
The Canadian dollar gained 0.34 cents to 77.81 cents U.S.
Encana jumped $1.06, or 13.4%, the most in two months, to $8.97, after people with knowledge of the matter said it’s weighing the sale of some of its shale assets in Western Canada as part of an effort to bolster its balance sheet amid protracted low oil prices.
Elsewhere in the oil patch, Cenovus Energy added 28 cents, or 1.5%, to $19.00
Meanwhile, raw-materials producers fluctuated, paring an earlier gain. Kinross Gold Corp. sank 41 cents, or 5.7%, to $6.74, after posting disappointing first-quarter earnings. Analysts at Deutsche Bank AG and Mackie Research cut their ratings for the stock.
Other gold stocks increased as gold advanced for a second day after Goldman Sachs Group Inc. raised price forecasts. Barrick Gold added 52 cents, or 2.2%, to $23.71.
Separately, copper and zinc led a rebound in industrial metals from the lowest levels in a month after Glencore Plc said it sees shortages emerging. First Quantum Minerals Ltd. climbed 70 cents, or 8.2%, to $9.23.
InnVest Real Estate Investment Trust surged a record $1.60, or 29.3%, to $7.07, after agreeing to sell itself to Bluesky Hotels & Resorts Inc., a closely held company backed by capital from Hong Kong. The $2.1-billion deal gives the Chinese firm a stake in Toronto’s historic Fairmont Royal York Hotel.
Intertain Group Ltd. jumped $1.13, or 10.7%, to $11.74, after reporting there have been preliminary offers to acquire the online gaming company in recent weeks and a special committee is weighing all proposals. Intertain expects to provide an update on the process by the end of June. The company also posted first-quarter earnings ahead of expectations.
Sleep Country Canada Holdings Inc. climbed $2.40, or 12.8%, to a record $21.15, after posting first-quarter earnings that exceeded analysts’ estimates on a 17% increase in revenue. Same-store sales also surged 12% at the mattress retailer.
ON BAYSTREET
The TSX Venture Exchange gathered 8.36 points to 669.46.
Seven of the 13 TSX subgroups were higher by day’s end, led by metals and mining, up 5.3%, gold, ahead 1.4%, and energy, up 1%.
The half-dozen laggards were weighed most by consumer discretionary stocks, down 1.3%, consumer staples, sliding 0.5%, and information technology, off 0.4%.
ON WALLSTREET
U.S. stocks closed lower Wednesday, under pressure from disappointing Disney and Macy's earnings, amid sharp gains in oil following a surprise inventory draw.
The Dow Jones Industrials stumbled 217.23 points, or 1.2%, after yesterday’s hefty gain, to 17,711.12. Disney contributed the most to declines, while declines in Wal-Mart, Home Depot and Nike also weighed on the index.
The S&P 500 dropped 18.75 points to 2,065.64. Consumer discretionary remained more than 1.5% lower to lead S&P 500 decliners, while energy and materials were the only gainers
The NASDAQ Composite moved in reverse 49.19 points, or 1%, to 4,760.69
Shares of Disney held more than 4% lower in afternoon trade after earlier falling more than 5.5%. Macy's traded more than 14% lower and Fossil briefly fell more than 30% after reporting earnings.
Disney reported its first earnings miss in five years, while revenue was also below forecasts. Factors affecting results included decline in ESPN ad revenue due to the timing of college football playoff games and higher pre-opening expenses at Shanghai Disney Resort, the company said.
Studio revenue for the quarter increased 22% to $2.1 billion U.S., powered by the box-office success of "Star Wars: The Force Awakens" and animated movie "Zootopia.”
Macy's lowered its full-year forecast, with CEO Terry J. Lundgren noting "continued weakness" in consumer spending in the press release. Quarterly earnings topped expectations, while revenue came in below estimates.
In other corporate news, Staples and Office Depot ended their planned merger deal after a judge sided with the Federal Trade Commission in its effort to block the deal on competitive grounds. The companies do not plan to appeal the decision.
Shares of Office Depot held about 39% lower in afternoon trade, tracking for its worst day since its IPO in 1988. Staples briefly traded more than 18% lower.
Prices for the 10-year Treasury gained slightly, lowering yields to 1.74% from Tuesday’s 1.75%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.43 a barrel to $46.09 U.S.
Gold prices hiked $11.95 to $1,277.79 U.S. an ounce.
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