Canadian stocks edged a little higher Wednesday, after ballooning 200 points Tuesday.
The S&P/TSX Composite index inched higher by 4.43 points to approach noon at 11,867.93.
The Canadian dollar moved higher 0.24 cents Wednesday to 100.54 cents U.S.
A climb in the telecom sector supported the market, followed by the materials sector and information technology sector, each adding about 0.6%.
Leading telecom equities, BlackBerry maker Research in Motion advanced 5.2%, while BCE Inc., the nation's largest telecom company, rose 3.3% after posting strong second-quarter results and raising its full-year earnings forecast and dividend payout.
Class B shares of Air Canada stumbled 7% after it reported it had more than doubled its second-quarter loss, from a year ago.
ON BAYSTREET
The TSX Venture Exchange sidled back 2.81 points to 1,187.75. The Nasdaq Canada index added 2.41 points to 349.54.
All but three of the 14 Toronto subgroups remained positive through midday. Telecoms were 1.2% higher, followed by global base metals, up 0.8%, and information technology, in the green by 0.6%.
The three laggards were financials, off 0.4%, utilities, fading 0.3%, and energy stocks, 0.2% less energetic.
ON WALLSTREET
U.S. stocks were little changed Wednesday as investors took a breather following a string of gains that put all three major indexes at their highest levels since early May.
The Dow Jones industrial average gained 16.06 points, to break for lunch at 13,184.68
The S&P 500 nipped higher by 1.15 points to 1,402.50. The Nasdaq squeezed higher 0.48 points to 3,016.34
But trading lacked conviction, according to several experts.
And, they added, even though stocks have been steadily climbing, investors still have plenty to worry about, with the overall market sentiment remaining bearish.
Meanwhile, on the corporate front, investors still have the tail end of earnings to contend with.
Shares of Priceline tumbled more than 15%, leading the decline in the S&P 500 and Nasdaq. The online travel company's forecast for the third quarter fell short of analyst expectations. Priceline blamed Europe's debt crisis and "the viability of the euro" for the slowdown. Shares of rival online travel sites including TripAdvisor, Expedia and Kayak were also lower.
Dean Foods shares jumped nearly 40%, making it the best performing S&P 500 stock, after the company boosted its profit forecast for the year. Dean Foods also announced that it is spinning off its WhiteWave-Alpro business, which sells the Horizon Organic, Silk soy milk and almond milk, International Delight and Land O' Lakes Products.
Shares of Hewlett-Packard climbed after the company unexpectedly boosted its third-quarter forecast.
About 85% of S&P 500 companies have reported their quarterly results, and earnings are on pace to grow just 0.6%.
On the bright side, 64% of the companies that have reported so far have topped Wall Street expectations, higher than the average rate of 62% over the past decade.
Investors are digesting the latest round of corporate results, while keeping an eye on news from Europe and the world's central banks.
England's central bank released its quarterly inflation report Wednesday, and was gloomy in its outlook. The Bank of England slashed its forecast for economic growth in Britain to 2% annually in two years, down from its earlier estimate of 2.6%. The central bank also trimmed its inflation outlook.
Economically speaking, productivity increased 1.6% during the second quarter, according to the U.S. Bureau of Labor Statistics. Analysts were expecting the figure to rise 1.5%.
Labour costs rose 1.7% last quarter, higher than the expected 0.4% increase.
The price on the benchmark 10-year U.S. Treasury lost ground, pushing the yield up to 1.64% from 1.63% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for September delivery gained 51 cents to $94.18 U.S. a barrel.
Gold futures for December delivery rose $3.90 to $1,616.70 U.S. an ounce.
