(NOTE: The pre-market update this morning gave a reference to outdated economic information pertaining to building permits from Statistics Canada. That information was, in fact, handed down Tuesday. Apologies for any inconvenience).
Equity markets in Canada’s largest market were subdued at the open on Wednesday ahead of an expected move by the U.S. Federal
Reserve to trim pandemic-era stimulus, with weakness in energy stocks also dampening sentiment.
The S&P/TSX Composite index squeezed up 11.89 points to begin the mid-week session at 21,181.90
The Canadian dollar fell 0.32 cents to 80.27 cents U.S.
National Bank of Canada raised the rating on Air Canada to outperform from sector perform. The Maple Leaf airline gathered 15 cents to $24.17
National Bank of Canada raised the target price on Equitable Group to $98.00 from $93.00. Equitable shares jumped $2.01, or 2.4%, to $84.51.
Canaccord Genuity cut the rating on Gibson Energy to hold from buy. Gibson shares collapsed 54 cents, or 2.2%, to $23.71.
ON BAYSTREET
The TSX Venture Exchange leaned lower 1.73 points to 974.03.
Seven of the 12 TSX subgroups were higher in the first hour, with health-care sprinting 2.3%, while consumer discretionary and real-estate stocks each gaining 0.5%.
The five laggards were weighed most heavily by gold, down 0.9%, information technology, sinking 0.4%, and materials off 0.3%.
ON WALLSTREET
The Dow Jones Industrial Average dipped slightly from its record on Wednesday as investors awaited a decision from the Federal Reserve on its move to start withdrawing the support it has been providing.
The Dow dropped 81.61 points to 35,971.02, dragged down by Amgen and Chevron.
The S&P 500 dished off 4.78 points to 4,625.87, from Tuesday’s all-time high.
The NASDAQ Composite poked ahead 4.62 points to 15.654.22.
Lyft jumped 13% on strong third-quarter results and CVS Health rose 3% on better-than-expected earnings.
Zillow fell more than 15% after announcing it will close its home buying and flipping business. Shares of Bed Bath & Beyond rose on a partnership announcement with Kroger but the 40% surge that followed was likely fueled by a short squeeze.
Activision shares tumbled, falling nearly 15% after it said the launch of two games would be delayed. The company also issued a weaker holiday outlook thought it did beat profit estimates for the quarter.
Investors are focused on the Federal Reserve, which is expected to announce the timeline for a gradual reduction in its bond-buying program Wednesday at the conclusion of its two-day meeting. They’ll also be listening for clues on when the central bank plans to raise interest rates.
Fed Chairman Jerome Powell is expected to stress that the reduction process known as tapering does not equate to tightening policy. Traders are pricing in a more aggressive path of interest rate hikes
Prices for 10-year Treasurys were higher, lowering yields to 1.55% from Tuesday’s 1.55%. Treasury prices and yields move in opposite directions.
Oil prices faded $2.02 to $81.89 U.S. a barrel.
Gold prices sank $26.80 to $1,762.80 U.S. an ounce.
