Stocks on Bay St moved into the red in early trading Wednesday dragged lower by utility stocks while shares of Corus Entertainment took a hit after it said first-quarter results fell short of expectations.
The S&P/TSX Composite Index was off 23.30 points Wednesday morning to 16,295.94.
Corus Entertainment Inc. says its first-quarter results fell short of expectations as it was hurt by a weak television advertising market. Chief executive Doug Murphy says the weakness more than offset gains in other parts of its business.
The company reported a first-quarter profit attributable to shareholders of $77.7-million, or 38 cents per diluted share, for the quarter ended Nov. 30, up from $71.1-million or 36 cents per share a year ago. Shares were down over 10 percent.
On the economic front -- The value of building permits issued by Canadian municipalities declined 7.7% in November to $7.7 billion, the first decrease in three months according to data from Statistics Canada.
The Canadian dollar rose 0.006 cents to 80.21 cents U.S.
Gold futures were higher by 0.4 percent at $1,318.30 per ounce.
Oil came off its highs Wednesday after the U.S. Energy Information Administration reported that domestic crude supplies fell by 4.9 million barrels in the week ended Jan. 5, wider than the declines expected by analysts. West Texas Intermediate crude, the U.S. benchmark, gained 0.3% to $63.17 a barrel.
ON BAYSTREET
The TSX Venture Exchange was off 12.95 points to 911.67 in early action.
Five of the TSX subgroups traded positive Wednesday -- with base metal issues up 1.10%, gold stocks ahead by 1.00% and material issues up 0.74%.
On the downside -- utilities were off 0.86%, while real estate issues backtracked 0.84% and consumer discretionary stocks shed 0.81%.
ON WALLSTREET
U.S. Markets traded lower Wednesday morning as concern grew that China may stop buying U.S. sovereign bonds.
The Dow Jones Industrial Average fell 66 points, or 0.3%, at 25,318, the S&P 500 index declined 8 points, or 0.3%, at 2,743, while the Nasdaq Composite Index gave up 28 points, or 0.4%, at 7,134.
Bloomberg News reported Wednesday, citing people familiar with the matter, that officials in Beijing have recommended the Chinese government lowers — or even stops — its buying of U.S. sovereign debt.
The report also notes that Chinese officials think U.S. debt is becoming less attractive compared to other assets, adding that trade tensions between the two countries could provide a reason to slow down or halt the purchases.
In corporate news -- Shares of Eastman Kodak Co. soared 74%, building on a 119% surge from Tuesday when the image-technology company said it is launching a cryptocurrency and would begin a “major blockchain initiative.”
In the latest economic data, cost of goods imported into the U.S. rose slightly in December and finished the year with a 3% increase — the biggest gain in six years.
Benchmark 10-year Treasury bond yields spiked to 2.588%, reflecting a growing chorus in the financial community that a "bear market" in bonds may have begun. U.S. 2-year Treasury yields also rose to a financial crisis peak of 1.981%.
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