Markets began Wednesday lower as troubles in Europe and a gloomy outlook for company earnings added to worries about braking global growth.
The S&P/TSX composite index started the day out down 15.90 points, to 12,257.67
The Canadian dollar lost 0.08 cents to 102.17 cents U.S.
Pharmacy chain Jean Coutu Group Inc reported a lower quarterly profit on Wednesday despite higher revenue, but profits were higher after excluding a gain that boosted-year ago earnings. Coutu shares acquired a nickel to $14.58
Aurico Gold will be selling off its Ocampo mine in Mexico, as well as adjacent exploration projects and a 50% stake in the Orion project, to tycoon Carlos Slim's Minera Frisco for $750 million. Aurico stock galloped ahead 91 cents, or 14.5%, in the trading day’s first hour, to $7.17.
No Canadian economic data was set for release Wednesday.
ON BAYSTREET
The TSX Venture Exchange dropped 11.64 points to 1,316.67
All but three of the 14 Toronto subgroups were lower to begin the session. Global base metals slumped 0.6%, while energy slipped 0.5% and health-care stocks were 0.4% less hale.
The three gainers were telecoms, up 0.5%, while gold and consumer staples eked higher 0.1% each.
ON WALLSTREET
U.S. stocks were little changed at the opening bell Wednesday as concerns about China's slowing growth and corporate earnings mounted.
The Dow Jones Industrial average fell another 44.91 points, to 13,428.60, after yesterday’s 100-point-plus setback.
The S&P 500 stumbled 1.61 points to 1,439.87, while the tech-rich Nasdaq eked higher 1.13 points to 3,066.15
Late Tuesday, aluminum producer Alcoa cut its forecast for Chinese demand due to its slowing economy. The poor outlook came a day after a report showed Japanese car sales in China fell unexpectedly -- partly due to worsening relations between the two nations over a territorial dispute concerning a band of islands.
In the United States, third-quarter earnings continued Wednesday morning with Costco reporting better-than-expected results.
Earnings season this third quarter unofficially kicked off Tuesday with Alcoa and restaurant operator Yum Brands. Alcoa's forecast pushed shares down 1%. Yum Brands shares rose 8% early Wednesday, a day after it reported earnings that beat expectations and reassured investors that sales at its China-based restaurants were still growing at a robust pace.
Still, analysts are expecting third-quarter earnings for the S&P 500 to decline 1.2%, according to experts. That would be the worst since the third quarter of 2009.
In company news, U.S. federal authorities sued Wells Fargo, accusing the bank of fraudulently approval thousands of home loans that caused significant losses for the government. Shares were flat Wednesday morning but they dipped 2% Tuesday following the news of the lawsuit.
Shares of Chevron fell after the company issued a statement saying third quarter earnings will be "substantially lower" than second quarter results.
In addition to earnings, investors will get a reading on the health of regional economies when the Federal Reserve releases its Beige Book at 2 p.m. ET. But analysts aren't expecting bombshells.
Elsewhere on the economic slate, the Mortgage Bankers Association reported mortgage applications fell 1.2% last week compared to the previous week. Later this morning, the U.S. Census Bureau will issue its report on wholesale trade.
The price of the benchmark 10-year U.S. Treasury staggered, pushing the yield up to 1.74% from 1.72% late Tuesday. Treasury prices and yields move in opposite directions.
Oil prices sifted off 33 cents to $92.06 U.S. a barrel.
Gold prices decreased $4.70 to $1,760.30 U.S. an ounce.
