Canadian equities traded mostly lower Wednesday, with technology shares leading the decline, but health-care stocks provided some support on the heels of a rally in SXC Health Solutions Corp.
The S&P/TSX Composite Index greeted the final bell on Wednesday down 8.05 points to 12,128.89
The Canadian dollar flattened by 0.1 cents, to 100.87 cents U.S.
Among the subsectors, information technology issues sank, with shares of Research In Motion Ltd. down 1.4% to $13.11.
Losses in Toronto’s technology sector came as shares of Intel and IBM declined in New York.
Intel late Tuesday projected second-quarter gross margin below some estimates and IBM reported quarterly profit that topped expectations, but revenue fell short of estimates.
Resource stocks also weakened in Toronto Wednesday.
Lundin Mining Corp. shares declined 3.6% to $4.30, while Kinross Gold Corp. fell 2.6% to $9.11 and Canadian Natural Resources Ltd lost 1.4% to $32.19.
The health care sector was among the strongest gainers, as shares of SXC Health Solutions rallied 10.8% to $88.19, after the company said it reached a deal with Catalyst Health Solutions Inc. to combine their businesses in a cash-and-stock deal valued at around $4.4 billion U.S.
ON BAYSTREET
The TSX Venture Exchange dipped 10.48 points to 1,411.82, while the Nasdaq Canada index added 4.74 points to 411.36
Of the 14 Toronto subgroups, nine were higher on the session, led by health-care stocks, up 3.4%, consumer staples, ahead 1.9%, and global base metals, 0.9% stronger.
The five laggards were weighed mostly by information technology, off 1.2%, materials, sagging 1%, and gold, down 0.9%
ON WALLSTREET
In New York, stocks pulled back Wednesday, as investors found new reasons to worry about Europe's economy. Less-than-stellar earnings from two big tech companies added to the sluggishness.
The Dow Jones Industrials fell back 82.79 points to close at 13,032.80.
The S&P 500 shed 5.57 points to 1,385.21, and the Nasdaq subtracted 11.37 points to 3,030.93
Spain released data showing that Spanish banks held more problem loans than expected, sending its stock market down and causing other European markets to fall.
That news added to worries over whether the government in Madrid may be forced to seek a bailout. On Wednesday, German two-year debt sold at a record-low yield, with investors fleeing to the perceived safety of Europe's largest economy amid the troubles elsewhere.
The yield on the German two-year note sat at 0.14% early Wednesday. Meanwhile, Spanish bond yields have been trending higher recently, with the 10-year note hovering just under 6%.
Several tech heavy-hitters released first-quarter earnings after Tuesday's closing bell.
Shares of IBM dropped after its earnings beat analysts' profit estimates but missed on sales. Intel's sales and earnings beat expectations, but the stock also fell Wednesday.
Overall, earnings have been better than expected.
Of the 56 companies in the S&P 500 that have reported their quarterly results thus far, 44 have beat analyst estimates, with seven matching and just five coming up short, according to some experts.
Shares of Berkshire Hathaway traded down slightly after its chairman and CEO Warren Buffett announced he has prostate cancer.
Shares of Chesapeake Energy hit a 52-week low after Reuters reported that Chesapeake's CEO borrowed more than $1 billion U.S. to finance stakes in the company's wells, and used those same stakes as collateral for additional loans
Yahoo reported profits late Tuesday that topped analyst estimates, sending shares higher Wednesday as investors hope the turnaround strategy of new CEO Scott Thompson will work.
Financial stocks were back in the spotlight Wednesday, with several notable firms reporting earnings.
Bank of New York Mellon reported its quarterly results before the opening bell, posting earnings and revenue in line with analyst expectations. PNC reported earnings of $1.44 U.S. a share, in line with expectations, on $3.73 billion U.S. in revenue.
First Republic Bank beat on revenue and reported earnings in line with expectations. The firm also announced that it was initiating a quarterly dividend of 10 cents U.S. a share.
The price on the benchmark 10-year U.S. Treasury perked, pushing the yield down to 1.98% from Tuesday’s 2.01%. Treasury prices and yields move in opposite directions.
Oil for May delivery slipped $1.54 to $102.67 U.S. a barrel.
Gold futures for April delivery fell $10.10 to $1,641.00 U.S. an ounce.
