Canadian equities scrambled back to the breakeven point Wednesday after Statistics Canada reported an unexpected decline in June retail sales.
The S&P/TSX Composite index fought their way to a gain of 2.07 points to end the session at 12,118.99, after spending much of the day in the red.
The Canadian dollar weakened a quarter of a cent to 100.87 cents U.S.
The metals and mining sector moved down as copper gave back some of Tuesday’s eight-cent run-up, down a penny to $3.45 U.S. a pound. Teck Resources shed 15 cents to $29.77.
In the energy sector, Suncor Energy pulled back 48 cents to $31.71, while rival Canadian Natural Resources dipped 36 cents to $31.41
Financials were also weak as Royal Bank eased 52 cents to $53.53.
The gold sector advanced as Barrick Gold Corp. rose 87 cents to $37.35.
In corporate news, dozens of independent merchants who operate 164 Rona stores across Canada have written to the head of Lowe’s Companies, saying they are opposed to a takeover of Quebec-based Rona Inc.
The letter, made public Wednesday, says the independents prefer Rona’s approach of combining a network of independents with more than 200 corporate stores. Rona shares were down 65 cents to $12.47.
CAE says it has won a series of military contracts valued at more than $55 million. They include a contract from Airbus Military to develop a full-flight simulator for the Royal Air Force of Oman and a contract to provide maintenance and support services for the Indian Air Force’s Hawk training devices. CAE shares dropped three cents to $10.15.
On the economic ledger, Statistics Canada told us this morning that retail sales eased 0.4% in June, more than offsetting a gain in May. Lower sales were reported in seven of 11 sub-sectors, representing 64% of retail trade.
ON BAYSTREET
The TSX Venture Exchange added 6.34 points to 1,245.66. The Nasdaq Canada eked up 0.10 points to 348.60.
The 14 Toronto subgroups were evenly divided between gainers and losers. Gold zoomed ahead 2.5%, while materials gained 1.8% and health-care stocks were up 0.6%.
The seven laggards were burdened down by losses in energy and industrial issues, each down 0.6%, while financials suffered 0.5%.
ON WALLSTREET
U.S. stocks trimmed losses Wednesday afternoon after minutes from the Federal Reserve's latest meeting showed the central bank leaning toward taking measures to stimulate the economy.
The Dow Jones industrial average fell 30.82 points to end the day at 13,172.80
The S&P 500 index squeezed out a gain of 0.35 points to 1,413.52, while the tech-heavy Nasdaq Composite Index grew 6.41 points to 3,073.67.
PC giants Dell and Hewlett-Packard were big profit laggards. Dell posted earnings that beat expectations, but shares slumped after the company issued a disappointing guidance. Rival HP is on tap to open its books after Wednesday's close.
Shares of Toll Brothers rose after the luxury home builder reported surprisingly strong earnings, signaling further momentum in the U.S. housing market.
Express posted earnings that beating analyst expectations, but net sales fell short of forecasts, sending shares of the apparel retailer down more than 10%.
Shares of Williams Sonoma surged after the housewares retailer reported better-than-expected second-quarter earnings and raised its forecast for the rest of the year.
American Eagle delivered earnings that were in line with expectations, but the company's forecast for the full year topped Wall Street's forecast, boosting shares.
A third round of large bond purchases known as quantitative easing -- or QE3 -- is still on the table, according to minutes from the Fed's latest policy meeting. The central bank is also debating a plan to lay out more explicit guidelines for Fed policy going forward.
Investors continue to keep an eye on Greece as Prime Minister Antonis Samaras meets with euro-zone officials throughout the week. He is expected to push for a two-year extension of the country's bailout program, which would give the government more time to implement difficult reforms and help get the nation's economy back on track.
On matters economic, existing home sales came in at an annual rate of 4.47 million in July, up from June's 4.37 million, according to the National Association of Realtors. The results were below an economists' consensus compiled by Briefing.com.
The price on the benchmark 10-year U.S. Treasury gained, pushing the yield down to 1.72% from Tuesday’s 1.81%. Treasury prices and yields move in opposite directions.
Oil for September delivery gained 47 cents to $97.31 U.S. a barrel.
Gold futures for December delivery fell $2.40 to settle at $1,640.50 U.S. an ounce.
