Toronto’s stock index opened lower Wednesday. All eyes are on the outcome of a meeting where the U.S. Federal Reserve is expected to show it is ready to act against a weakening economy, but stop short of aggressive measures for now.
The S&P/TSX Composite index slumped 40.02 points to open Wednesday at 11,624.69
The Canadian dollar strengthened 0.20 cents to 99.87 cents U.S.
Among stocks to watch this morning, Catamaran Corp -- the pharmacy benefit manager formerly known as SXC Health Solutions -- posted a 27% increase in second-quarter profit, helped by its acquisition of HealthTran.
Hemisphere GPS Inc. reported a quarterly loss on a severe drought in the United States, its biggest market.
Canadian property and casualty insurer Intact Financial Corp reported a 90% jump in operating profit for the second quarter on higher underwriting and investment income.
Mortgage insurer Genworth MI Canada said its quarterly profit fell 5% on lower net premiums earned.
Talisman Energy Inc, the number-five Canadian independent oil producer, reported a 72% fall in second-quarter profit on low natural gas prices and higher operating costs.
Torstar Corp reported a 68% fall in second-quarter profit citing weak spending by advertisers.
ON BAYSTREET
The TSX Venture Exchange picked up 1.12 points to 1,184.20. The Nasdaq Canada index recouped 3.21 points to 337.
In all, 10 of the 14 Toronto subgroups were lower at the outset. Gold fell 2%, materials were down 1.4%, and industrials shed 0.5%.
The four gainers were led by health-care, up 0.9%, information technology, up 0.6%, and telecoms, ahead 0.4%.
ON WALLSTREET
U.S. stocks opened marginally higher Wednesday, as investors took in the latest economic data ahead of the Federal Reserve's monetary-policy decision.
The Dow Jones industrial average eked ahead 13.62 points, to begin trading at 13,022.30
The S&P 500 dropped 0.09 points to 1,379.23. The Nasdaq docked 2.2 points to 2,937.32
Time Warner shares dipped after the media giant's reported reduced second-quarter revenue and earnings Wednesday despite improved results at its television networks unit.
Comcast reported better-than-expected earnings and sales figures for the second quarter, as the company added new customers for its Internet and phone services.
Shares of Avon Products fell after the company's second-quarter profit dropped 70% from a year ago and sales fell 9%, coming in below expectations.
The Fed wraps up its two-day meeting Wednesday, and is due to announce the outcome of its latest policy meeting at 2:15 p.m. ET.
Investors are hoping that the central bank will announce some form of stimulus to jumpstart the slowing economy, but expect that it will hold off from more aggressive actions, such as a third round of bond buying, or QE3.
The European Central Bank will take centre stage Thursday, when its Governing Council meets in Frankfurt. Investors are hopeful that the E.C.B. will announce some form of new action, after central bank head Mario Draghi said last week that the institution will do "whatever it takes" to preserve the euro.
On the economic slate, U.S. private-sector employers add 163,000 jobs in July, payroll-processor ADP says. Economists had expected an addition of 125,000 jobs.
The Institute for Supply Management's Manufacturing Index for July is due later this morning. It's expected to come in at 50.1, up from 49.7 last month. Construction spending for June, due from the Census Bureau, is expected to have risen by 0.5%.
Data on auto and truck sales will also be released Wednesday.
The price on the benchmark 10-year U.S. Treasury faltered, raising yields to 1.51% from Tuesday’s 1.49%. Treasury prices and yields move in opposite directions.
Oil for September delivery hiked 32 cents to $88.38 U.S. a barrel.
Gold futures for August delivery rose $1.40 to $1,611.90 U.S. an ounce.
