Toronto stocks fell at open on Wednesday, led by losses in technology stocks, while investors were spooked after rating agency Fitch downgraded United States' top credit rating, prompting them to park their money in safe-haven gold, pushing the bullion prices higher.
The TSX shed 147.79 points to begin Wednesday at 20,385.14.
The Canadian dollar dropped 0.33 cents to 75.03 cents U.S.
Thomson Reuters Corp, on Wednesday reported higher sales and operating profit in the second quarter, helped by strong performance at its "Big 3" segments: Legal Professionals, Corporates and Tax & Accounting Professionals.
Thomson shares kicked off the mid-week session up $2.78, or 1.6%, to $182.21.
Bausch + Lomb posted modestly better than expected second-quarter earnings on Wednesday after its new chief executive, Brent Saunders, took the helm in March. Bausch shares vaulted 78 cents, or 3%, to $26.54.
Canada is set for an earnings-heavy week, as the world's biggest fertilizer producer Nutrien and solid waste services company Waste Connections are due to report quarterly results later in the day. For now, Nutrien shares are ahead of the game 44 cents to $89.54, while Waste Connections gathered 99 cents to $190.85.
ON BAYSTREET
The TSX Venture Exchange skidded 3.66 points, to 619.02.
All but two of the 12 TSX subgroups declined, as information technology dipped 1.6%, while utilities and energy were each 0.8% to the bad.
The two gainers were in real-estate, up 0.3%, while health-care nosed up 0.1%.
ON WALLSTREET
Stocks fell Wednesday after Fitch downgraded the long-term rating for the U.S. and traders scrutinized the latest batch of second-quarter earnings results.
The Dow Jones Industrials stumbled 215.12 points to begin Wednesday at 35,415.16.
The S&P 500 Index let go of 47.07 points, or 1%, to 4,529.66.
The NASDAQ index staggered 251.75 points, or 1.8%, to 14,032.16.
Fitch Ratings cut the long-term foreign currency issuer default rating for the U.S. to AA+ from AAA Tuesday night, citing “expected fiscal deterioration over the next three years.”
On top of that, a busy earnings week carried on. Advanced Micro Devices was flat despite better-than-expected results. CVS Health rose 2% after posting strong earnings as it trims costs. SolarEdge Technologies tumbled 16% after missing second-quarter revenue expectations.
Earnings season is more than halfway through with results coming in stronger than expected. Of the S&P 500 companies that have reported, about 82% have posted positive surprises. The earnings beats have added to bullish investor sentiment, continuing this year’s recovery.
Elsewhere, the latest ADP jobs report showed 324,000 private payrolls added in July. That far exceeded the jobs gains expected by economists polled by Dow Jones, but marked a decrease from June’s downwardly revised 455,000.
Prices for the 10-year Treasury tumbled, raising yields to 4.10% from Tuesday’s 4.03%. Treasury prices and yields move in opposite directions.
Oil prices dipped 58 cents to $80.79 U.S. a barrel.
Gold prices added $1.50 to $1,980.30 U.S. an ounce.
