Stocks in Toronto dropped a few points at Wednesday’s open, as investors turned jittery ahead of the release of the U.S. Federal Reserve's policy statement later in the day.
The S&P/TSX Composite Index faded 24.42 points, to begin Wednesday at 12,343.04
The Canadian dollar strengthened 0.28 cents to 98.19 cents U.S.
Fairfax Financial Holdings will raise its stake in Greek real estate firm Eurobank Properties to 42% from 19%, Eurobank’s parent company said. Fairfax shares docked 93 cents to $413.07.
CIBC cut the target price on Coastal Energy Co. to $20 from $24.50, adding although material growth is expected, a rebound isn't seen until the production rates have been achieved. Coastal stock gathered a nickel to $13.81.
Telecom stocks took a bruising in the early going, mostly Rogers Communications, off 1.7% to $46.10.
Also suffering in the first hour were information technology issues, as BlackBerry fell 3.5% to $14.60 a share.
Gold stocks, on the other hand, tried to rally off the back of Gabriel Resources, up 6.7% at $1.30, while Agnico-Eagle Mines zoomed 1.7% to $30.66.
On the economic front, Statistics Canada reported this morning that wholesale trade came in for April at $49.0 billion, up 0.2% from the previous month, mainly as a result of higher sales in the computer and communications equipment and supplies industry
ON BAYSTREET
The TSX Venture Exchange lost 3.45 points to 926.54
All but three of the 14 Toronto subgroups were off in the first hour, weighed by telecoms and information technology, each down 0.8%, and global base metals, retreating 0.4%.
The three gainers were gold, up 0.4%, materials, ahead 0.2%, and consumer staples, eking up 0.04%.
ON WALLSTREET
U.S. Federal Reserve chairman Ben Bernanke takes the podium Wednesday, and investors are hoping he'll provide some clarity on when the central bank could begin tapering the pace of its bond purchases.
The Dow Jones Industrials dipped 6.72 points to 15,311.50
The S&P 500 index doffed 2.34 points to 1,649.47. The tech-rich NASDAQ Composite inched up 0.52 points to 3,482.71
The Fed's bond-buying program has been a boon to equity markets, supporting U.S. and global stock indexes and driving them to recent record highs.
Any comments from Bernanke suggesting that the program's end is near would likely lead to significant declines.
The Fed will release a statement at the conclusion of the its latest monetary policy meeting at 2:00 p.m. ET. Bernanke is scheduled to speak at 2:30 p.m. ET.
In corporate news, shares of Tesla Motors dipped after the automaker announced a recall of some of its Model S cars for a non-mechanical defect.
FedEx shares edged higher after the shipping giant reported quarterly earnings blew past forecasts, though revenue was roughly in line with estimates. The company is often seen as a bellwether for the global economy given the nature of its delivery business and its international footprint.
Adobe shares jumped after the software company reported quarterly earnings that beat expectations.
Dish Networks dropped its pursuit of Sprint, clearing the way for Japan's SoftBank to continue with its offer. Dish said it would instead focus on its tender offer for Clearwire
Prices for the 10-year U.S. Treasury were unchanged, keeping yields at Tuesday’s 2.18%.
Oil prices inched up five cents to $98.49 U.S. a barrel.
Gold prices recovered $6.50 to $1,373.40 U.S. an ounce
