Canada's main stock index dropped at the outset Wednesday, as investors turned cautious ahead of the outcome of the U.S. Federal Reserve's policy meeting later in the session.
The S&P/TSX index fell 89.38 points, to begin Wednesday at 12,367.12
The Canadian dollar ditched 0.11 cents to 99.17 cents U.S.
But shares of Tim Hortons Inc were expected to rise after reports that the coffee-and-doughnut chain has come under pressure from a large investor to aggressively boost returns through debt-funded share buybacks and a scaling back of U.S. expansion plans. Tim shares drop in bullion prices, its chief executive said on Tuesday. Shares galloped $2.23, or 4.1%, to $56.81.
Yamana Gold Inc is aiming to sharply reduce its all-in sustaining costs this year, as it adjusts to a recent drop in bullion prices, its chief executive said on Tuesday. Shares faltered $1.17, or 9.4%, to $11.30
Loblaw Companies reported a 40% rise in first-quarter profit and said it plans to compete in the initial public offering of its real estate investment trust in early to mid-July. Loblaw shares triumphed $2.01, or 4.7%, to $44.76
Talisman Energy Inc posted a quarterly loss as the sale of some North Sea assets hurt production but it said it expected significant growth in higher-margin liquids output in the second half of this year and into 2014. Shares gave back 57 cents to $11.51.
Elsewhere, Canadian Oil Sands Ltd said on Tuesday that first-quarter profit fell by nearly half as operating problems and the oil sands facility lowered production. Oil Sands shares dipped 14 cents to $19.65
Pharmacy whiz Jean Coutu Group Inc. reported a 7% fall in revenue due to reductions in the prices of generic drugs and an additional reporting week in the year-earlier quarter. Shares fell 42 cents to $16.33
ON BAYSTREET
The TSX Venture Exchange doffed 4.86 Wednesday to 960.44
All but two of the 14 Toronto subgroups were lower in the first hour, weighed by gold, off 2.3%, metals and mining, sliding 2.1%, and materials, down 1.9%.
The two groups that did progress did so by 0.5% each; they were consumer staples and consumer discretionaries.
ON WALLSTREET
With worries of another spring swoon on the mind, investors began May by taking a step back.
The Dow Jones Industrials tumbled 74.57 points to start Wednesday at 14,765.20
The S&P 500 index dipped 4.62 to 1,592.95. The NASDAQ Composite shed 20.37 points to 3,308.42
The S&P 500 closed April at a record high, the NASDAQ finished at its highest level in more than 12 years, and the Dow ended just a hair below its all-time high. But those milestones have been reached amid a still-fragile economy.
In corporate news, Time Warner reported a dip in first-quarter sales but a jump in profit, propelled by "The Hobbit: An Unexpected Journey," a box office hit surpassing $1 billion U.S.
Genworth Financial's stock price surged after the company said that its quarterly profit more than doubled.
Comcast reported an increase in profit and revenue, which the company attributed to the success of video and high-speed internet subscriptions.
Shares of MasterCard slipped, despite the credit card company reporting a quarterly increase in sales and profit.
Facebook is on deck to report earnings in the afternoon.
Apple's stock price edged down, a day after rising more than 3% ahead of it record $17-billion U.S. bond sale.
Fears of a pullback have been growing, as stocks have been on a tear for the past several months.
Investors are waiting for the U.S. Federal Reserve's policy-making committee to wrap up its two-day meeting for any signs as to how long it will continue its aggressive monetary policies. The market is widely expecting the central bank will continue its bond buying program to keep supporting the U.S. economy.
Economically speaking, investors will also look to a handful of economic reports that come ahead of the government's monthly jobs data due Friday.
Payroll processor ADP published its monthly data on private-sector jobs, showing that only 119,000 jobs were added in April, below forecasts.
Also, the Fed will release data on construction spending this morning.
Prices on the 10-year U.S. Treasury jumped, pushing yields lower to 1.63% from Tuesday’s 1.68%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.23 to $91.23 U.S. a barrel.
Gold prices were down $20.90 at $1,451.20 U.S. an ounce
