Toronto's main index was near its highs of the day in afternoon trading while New York also held onto gains following a boost of confidence from U.S. Treasury Secretary Timothy Geithner.
Toronto's S&P/TSX composite finished ahead, but only 29.29 points at 9,276.46 after triple-digit gains earlier in the day.
EnCana Corp. topped expectations as its first-quarter profit soared to $962 million U.S. or $1.28 U.S. per share, from $93 million U.S. a year ago. Its shares were up $2.59 to $55.33.
Precision Drilling Trust reported a first-quarter net profit of $57 million, down 46% from a year ago amid an "unprecedented" slump in oilpatch activity. Its units were up 54 cents to $5.77.
Toromont Industries Ltd. booked a record 44% year-over-year increase in first-quarter profit to $23.7 million as revenue rose to $457.7 million despite lower booking activities. Shares of the company were up $1.09 to $25.08.
Canwest Global Communications Corp. gained six cents to 30 cents after the media conglomerate arranged another reprieve from lenders and noteholders, this time until May 5.
Youth clothing retailer West 49 Inc. dropped to an $8.5-million net loss in its latest quarter. The company also said it was in violation of a bank covenant at the end of the quarter, though it has obtained a waiver until June 30, but expects to violate another covenant when the current quarter closes at the end of this month. Shares lost 55 cents to 31 cents.
On the economic front, Canada’s index of leading economic indicators fell more than expected in March, as housing and stock markets continued to weaken and new orders for manufacturers tumbled on lower demand for vehicles, according to Statistics Canada.
The leading economic index dropped 1.3% last month, its seventh consecutive decline. The agency’s gauge of new orders for factories fell 10% while the housing index declined 4.3% and stock prices dropped 2.3% during the month.
The Canadian dollar was off 0.26 at 80.65 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, nine were positive, led by energy stocks, up 1.6%, consumer discretionaries, up 1.1% and gold, ahead 1%.
Losing groups were financials, down 1.3%, metals and mining, listing down 0.5% and health-care stocks, declining 0.3%.
The TSX Venture Exchange picked up 4.74 points to 979.12 while the Nasdaq Canada Index edged up 2.54 to 656.15
ON WALLSTREET
The Dow Jones Industrials average veered off course, losing 83 points to close a stormy session at 7,886.57
The S&P 500 index tailed off 6.53 points to 843.55, while the Nasdaq Composite Index moved 2.27 higher to 1,646.12.
Geithner told the Economic Club of Washington that progress is being made, and that the downturn is showing signs of moderation, though he emphasized the G-20 countries need to continue their efforts.
"The actions now in place and in the pipeline offer the strongest basis for confidence that we will begin to lay the foundation for global recovery," Geithner said.
Geithner also said most U.S. banks are adequately capitalized.
The International Monetary Fund is projecting a 1.3% drop in global economic activity this year, the first time in six decades that the world economy shrinks.
The new forecast of a decline in global economic activity for 2009 is much weaker than the 0.5% growth the IMF had estimated in January.
Morgan Stanley reported a deeper-than-expected loss and reduced its dividend. The banking giant was hurt by the deteriorating commercial real estate market. The loss of 57 cents U.S. per share for the January-March period was wider than a loss of eight cents a share that analysts had expected. Shares fell 9%.
Capital One reported a $176.1 million U.S. first-quarter loss on increasing credit losses. The bank and credit card company also set aside more money for bad loans, and said a measure of losses in all of its businesses likely will be higher in 2009 than the $8.6 billion U.S. it previously projected.
And Wells Fargo & Co., which bought Wachovia last fall at the height of the credit crisis, said it earned $2.38 billion U.S. That compares with a profit of $2 billion U.S. a year earlier. Shares eased 3.3%.
Late Tuesday, Yahoo reported lower quarterly sales and earnings that topped estimates. The company also said it would cut 5% of its workforce. Shares gained 10 cents Wednesday.
Dow component AT&T reported a smaller-than-expected drop in quarterly profit that topped forecasts. AT&T shares gained 2%.
Fellow Dow stock McDonald's also reported lower quarterly profit that topped estimates. The stock fell 2.5%.
Boeing reported lower quarterly profit that missed estimates. Yet, shares gained nearly 2% after the company forecast lower full-year earnings that were still better than what analysts were expecting.
SanDisk reported a smaller-than-expected quarterly loss, propelling shares of the flash-memory maker by 12%.
Kimberly-Clark Corp., which makes Huggies diapers, Kleenex tissues and other consumer products, said its first-quarter profit dropped 8% to $407 million U.S. because of the effect of the stronger U.S. dollar.
Caterpillar shares added more than 3% after JPMorgan Chase lifted its rating on the stock to "overweight" from "neutral," Reuters reported.
Ford Motor shares rallied 13% after Goldman Sachs upgraded both the U.S. auto sector and Ford stock, Reuters reported.
Continental Airlines announced a loss for the first quarter, but results were better than expected. Health insurer WellPoint posted disappointing results.
The White House has spurned a plan put forth by Chrysler's lenders as the deadline for the automaker's restructuring approaches.
The U.S. Energy Information Administration said that crude inventories rose by 3.7 million barrels to 370.6 million barrels, which is the highest level in nearly 19 years.
Treasury prices tumbled, raising the yield on the benchmark 10-year note to 2.95% from 2.89% Tuesday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose 30 cents to settle at $48.85 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $9.80 to settle at $892.50 U.S. an ounce.
