Toronto's main stock index took its lumps on Wednesday, after the index posted its biggest one-day gain in six weeks on Tuesday, as skepticism about the outcome of a European Union summit rose.
The S&P/TSX Composite Index dumped 147 points, or 1.3% -- after a gain Tuesday of 170 points plus, to begin Wednesday at 11,304.78
The Canadian dollar slid 0.46 to 97.49 cents U.S.
Among stocks to watch this morning, Bank of Montreal's second-quarter profit rose 27%, helped by the 2011 acquisition of U.S. lender Marshall & Ilsley.
The Bank of Nova Scotia has agreed to sell the Toronto office towers that house its corporate headquarters for $1.27 billion to a pair of Canadian real estate investment trusts
Canaccord Financial reported a fiscal fourth-quarter net loss, hurt by lower revenues from its trading and investment banking businesses, and higher costs tied to restructuring and acquisition-related items.
Locomotive engineers and conductors at Canadian Pacific Railway went on strike early on Wednesday after failing to reach a contract agreement, a union body said, shutting down freight operations on Canada's second-biggest railroad.
Speaking of things economic, Statistics Canada reported this morning that Canadian retail sales rose by 0.4% in April, to $39.1 billion, a new record, powered largely by auto and clothing sales.
The agency also told us that its composite leading indicator rose 0.3% in April, matching the increase in March, running its monthly win streak to 10. Of the 10 components, seven advanced in March.
ON BAYSTREET
The TSX Venture Exchange stumbled 7.93 points to 1,238.82, while the Nasdaq Canada dropped 3.38 points to 359.33.
All 14 Toronto subgroups lost ground in the first hour, weighed down mostly by metals and mining stocks and their cohorts in the energy field, each off 1.9%, while global base metals suffered 1.5%.
ON WALLSTREET
U.S. stocks fell at the open Wednesday amid worries about Greece leaving the euro-zone and a slowdown in Asian economies.
The Dow Jones Industrials dropped 145.08 points, or 1.2% to register at 12,357.73
The S&P 500 tripped 14.29 points to 1,302.34. The tech-rich Nasdaq Composite Index docked 29.27 points to 2,809.81.
Investors will continue to keep close tabs on Facebook and the unfolding saga. Investigators are looking into whether Morgan Stanley, the lead underwriter for Facebook's initial public offering last week, shared a negative assessment of the social network with major clients ahead of the IPO.
Shares of Facebook, which lost 18% from its IPO price in the first two days of trading this week, rebounded 4% in early trading.
Weak earnings, sales and guidance from Dell late Tuesday sparked a sell-off in its shares, as well as shares of rival Hewlett Packard. HP is set to report its own results after the bell Wednesday, when it is expected to also announce deep staff cuts.
The computer and printer maker is also widely expected to announce mass layoffs along with its report.
Automaker Ford Motor had its debt upgraded out of junk bond status by Moody's late Tuesday -- an important benchmark for the automaker that will lower its borrowing costs, and allow it to reclaim collateral it put up for a credit line.
Homebuilder Toll Brothers reported better-than-expected earnings and revenue that was in line with forecasts before the market open Wednesday. It also upped its guidance for the second quarter. The company said that in some regions of the country it has shifted from a buyer's to a seller's market.
Shares of Hormel edged higher after the meat and food company reported a better-than-expected gain in earnings before the bell.
Financial stocks were under pressure early Wednesday, with shares of JPMorgan Chase and Bank of America down 1%, while Citigroup shed 1.7%.
On the economic slate, new home sales for the month of April are expected to come in at an annual rate of 339,000, up from 328,000 in the month prior. The report follows a strong report on sales of existing homes Tuesday, in which sales climbed 10%.
The price on the benchmark 10-year U.S. Treasury grew, lowering the yield to 1.73% from Tuesday’s 1.79%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil surrendered 76 cents to $91.09 U.S.
Gold futures for June delivery tumbled $15.70 to $1,560.90 U.S. an ounce.
