The Toronto stock market turned sharply south Wednesday as a dividend boost from BCE Inc. was weighed against caution ahead of a slate of upcoming Chinese economic data.
The S&P/TSX Composite index gave back 82.41 points to close the day at 11,781.09.
The Canadian dollar moved higher 0.21 cents Wednesday to 100.52 cents U.S.
Leading the upside on the TSX were telecom stocks, after BCE Inc. announced an increase to both its dividend and 2012 earnings forecast.
The telecom and media company says the dividend will rise to $2.27 per share annually, or 56.75 cents per share quarterly, beginning with the October payout. Adjusted earnings have been increased by two cents per share, to a range of between $3.15 and $3.20 per share.
The Montreal-based company said its profit rose to $773 million, or $1 per share, compared with $590 million or 76 cents a share a year ago. BCE shares gained $1.09, or 2.5% to $44.34.
TSX information technology stocks were up, with Research In Motion shares rising 3.6%, or 26 cents, to $7.58.
September copper moved down 1.8 cents to $3.42 U.S. a pound.
In Canadian earnings, Air Canada Inc. reported a $96-million net loss in the three-month period, more than double the $46 million it lost a year earlier and more than analysts had expected. Revenue was flat, rising a slight $71 million to $2.99 billion. Shares were down 10 cents, or 8.7% to $1.05.
Rona Inc. says its profit fell to $34.1 million in the second quarter, a penny below estimates and down from $37 million a year earlier.
Revenue at Canada's biggest home-improvement chain was in line with estimates, rising by 3.4% from a year ago to $1.4 billion. Shares of the company increased three cents to $13.78.
ON BAYSTREET
The TSX Venture Exchange backtracked 4.88 points to 1,185.68. The Nasdaq Canada index added 0.38 points to 347.51.
The 14 Toronto subgroups ended the session equally divided between gainers and losers. Information technology issues led the former, up 0.9%, while global base metals prospered 0.5%, and health-care stocks hiked 0.3%.
The seven laggards were weighed by energy stocks, down 1.1%, gold, off 1%, and materials, sinking 0.8%.
ON WALLSTREET
U.S. stocks were little changed Wednesday as investors took a breather with the three major indexes at their highest levels since early May.
The Dow Jones industrial average gained 7.04 points to finish the day at 13,175.60
The S&P 500 nipped higher by 0.88 points to 1,402.23. The Nasdaq docked 4.61 points to 3,011.25
McDonald's stock was the biggest loser in the Dow. The fast food giant's July same-store sales were flat. Sales in Europe declined the most, falling 0.6% last month amid weakness in Germany and southern European markets.
Shares of Macy's rose as the retailer topped earnings and revenue expectations. Macy's also raised its earnings guidance for the year.
Shares of Ralph Lauren slipped after the company issued a downbeat forecast for the third quarter, forecasting revenues to decline slightly. The company's second-quarter earnings beat forecasts, while revenue was in line with expectations.
Bain Capital-backed Bloomin' Brands, which owns Outback Steakhouse as well as smaller chains like Carrabba's Italian Grill and Fleming's Prime Steakhouse, made its debut on the Nasdaq Wednesday. Shares rose 10% above its IPO price of $11 U.S. per share.
After the bell, News Corp is expected to report earnings of 32 cents a share on $8.7 billion U.S. in revenue.
Starbucks signed on with Square Inc. to process its credit and debit card purchases. As part of the deal, Starbucks pledged to invest $25 million U.S. in Square, a mobile payment platform for retailers. In addition, Starbucks CEO Howard Schultz will join Square's board of directors.
Nearly 90% of S&P 500 companies have reported their quarterly results, and earnings are on pace to grow just 0.9%.
On the bright side, 65% 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 slid 33 cents to $93.34 U.S. a barrel.
Gold futures for December delivery rose $3.20 to $1,616 U.S. an ounce.
