Canada's benchmark stock index opened lower on Wednesday, even as heavyweight banks reporting earnings this week again boosted the overall market.
The S&P/TSX Composite index dropped 13.16 points to begin Wednesday at 11,996.74
The Canadian dollar strengthened 0.09 cents to 101.29 cents U.S.
Shareholders in Canada's Progress Energy Resources Corp have approved a takeover bid from Malaysia's state oil company Petronas at $22.00 a share, or near $6 billion, including debt. Progress shares dipped two cents soon after the opening bell to $21.95.
Canada’s biggest bank, Royal Bank of Canada, sprang up 36 cents to $54.53, while rival Bank of Montreal gained 42 cents to $58.35.
On the economic slate, Statistics Canada reports that the Industrial Product Price Index was down 0.5% in July compared with June, due mostly to chemical products and motor vehicles and other transportation equipment. The Raw Materials Price Index rose 0.9%, because of higher prices for mineral fuels and vegetable products.
ON BAYSTREET
The TSX Venture Exchange fell 10.73 points to 1,231.15. The Nasdaq Canada erased 1.72 points to 346.16
All but two of the 14 Toronto subgroups were negative in the first hour of trading. Global base metals dipped 0.9%, while metals and mining lost 0.8% and utilities flopped 0.6%.
The two gainers were financials, up 0.4%, and telecoms, ahead 0.2%.
ON WALLSTREET
U.S. stocks opened mixed Wednesday after a government report showed the U.S. economy grew at a slightly faster pace in the second quarter.
The Dow Jones industrial average swooned 0.83 points to 13,102.16
The S&P 500 index recovered 0.69 points to 1,409.99, and the tech-heavy Nasdaq Composite Index fought its way higher by 0.71 points to 3,077.85.
H.J. Heinz reported earnings of 87 cents U.S. a share, increasing 10% from this quarter last year and beating analyst expectations. The company cited strong sales in emerging markets for the increase. But overall sales came in below forecasts, putting pressure on the stock.
Pandora and TiVo will release their earnings after the bell. Pandora is expected to report a loss of three cents U.S. a share on $101 million U.S. in revenue, while TiVo is expected to post a loss of 24 cents U.S. a share on $54 million U.S. in revenue.
Meanwhile, oil prices continue to hover near $96 U.S. a barrel, as Hurricane Isaac curtailed oil production along the Gulf of Mexico. But gas prices jumped up 4.8 cents to $3.804 U.S. on Wednesday, according to motorist group the American Automobile Association. Gas prices are now up nearly 9% in August and at their highest level since early May.
Economically speaking, the GDP revision, while better than expected at 1.7%, was still weak. Stocks have been drifting for much of this last week of August as investors are either on the sidelines or still on vacation.
Moreover, investors headed into Wednesday awaiting a report on pending home sales, as well as the August edition of the Federal Reserve's Beige Book report, a regional snapshot of economic conditions.
This morning, the National Association of Realtors will release data on July pending home sales, which are expected to be flat versus June, according to a survey of economists by Briefing.com.
The Beige Book is due out in the afternoon.
The price on the benchmark 10-year U.S. Treasury fell a bit pushing the yield up to 1.66% from 1.63% late Tuesday. Treasury prices and yields move in opposite directions.
Oil prices for September delivery dove 63 cents to $95.69 U.S. a barrel.
Gold futures for December delivery fell nine cents to $1,668.80 U.S. an ounce.
