Positive earnings news, and better than expected economic growth figures for the U.S., were not enough to push the Toronto stock market out of negative territory Wednesday.
The S&P/TSX Composite Index dipped 15.90 points by noon ET to 12,565.85
The Canadian dollar regained 0.19 cents to 97.22 cents U.S. as the Canadian economy performed weaker than expected during May. Statistics Canada reported gross domestic product grew by 0.2%. Economists had looked for a 0.3% rise from April.
On the earnings front, media company Torstar Corp. had $18 million of net income attributable to shareholders, or 23 cents per share. That was down from $32.6 million or 41 cents per share a year ago with its Harlequin book publishing operations especially affected by lower volumes overseas.
Torstar's total revenue was $354.9 million, down 7.5% from $383.9 million.
Shares in the rival potash marketing group were hard hit with PotashCorp of Saskatchewan losing 16%, Agrium dropped 5%
Those shares continued to deteriorate Wednesday with Potash down $1.43, or 4.4%, to $31.23 amid downgrades of its stock by seven firms. Agrium fell $2.15, or 2.4%, to $87.
The information technology sector led TSX gainers, up over three per cent as CGI Group Inc. posted a profit of $178.2 million or 56 cents per share for the third quarter, up from $87.2 billion or 33 cents per share last year.
Revenue was up to $2.57 billion from $1.06 billion and its shares jumped $3.14 or 9.7% to $35.47.
Rail stocks also advanced with Canadian National Railways ahead 77 cents to $104.43.
Financials were also supportive as Intact Financial Corp. reported that it had a smaller second-quarter profit than last year but exceeded analyst estimates following several recent catastrophes that will result in millions of dollars of payouts by the insurance company.
The Toronto-based property and casualty insurance company had 89 cents per share of net operating income, down from $1.35 a year earlier but 16 cents a share better than anticipated and its shares ran up $2.64 to $61.38.
The energy sector was up and Canadian Natural Resources improved by 50 cents to $32.16.
Talisman Energy reported a $27 million loss from operations, or three cents per share, in the quarter, down from a year earlier profit of $71 million or seven cents per share. Analysts polled by Thomson Reuters had recently lowered their estimates for Talisman to less than a cent per share of adjusted earnings.
Talisman also revised its 2013 production guidance to the lower end of estimates and its shares fell 32 cents to $11.62.
The base metals sector fell while September copper rose three cents to $3.07 U.S. after falling seven cents Tuesday. Teck Resources fell 22 cents to $24.17.
ON BAYSTREET
The TSX Venture Exchange remained positive 0.96 points to 915.37
Of the 14 Toronto subgroups, nine were lower midday, as materials slumped 2.2%, while the gold sector slipped 2%, and metals and mining groups gave back 1.1%.
The five laggards were headed by information technology, surging 3.8%, while energy stocks gained 0.7%, and health-care issues were 0.5% haler.
ON WALLSTREET
The Dow Jones Industrials jumped to a new record trading high Wednesday, after a pair of positive economic reports eased concerns about the Fed easing its stimulus program.
The Dow vaulted 55.45 points to 15,576
The S&P 500 index took on 6.65 points to 1,692.61. The NASDAQ added 15.33 points to 3,631.80
More than a year after its much-hyped initial public offering, Facebook's stock finally exceeded its IPO price. Shares briefly topped $38 U.S. after the market opened, but have eased back. Facebook's stock has soared more than 40% since it reported strong earnings last week.
Ahead of the bell, Comcast and MasterCard both reported better-than-expected earnings and revenue.
Diageo, the maker of Johnnie Walker, Guinness and many other name-brand alcoholic beverages, reported full-year results showing steady growth in sales and profits.
Shares of Anheuser Busch, the maker of Budweiser beer, soared after the company beat earnings forecasts.
Shares of industrial gas producer Air Products rose after hedge fund manager Bill Ackman disclosed a 9.8% stake in the company.
Yelp, Allstate and Metlife are reporting after the close.
Economically speaking, the U.S. government's first estimate of second-quarter GDP showed the economy grew at a 1.7% annual rate. That was an improvement over the first quarter, which grew at a 1.1% annual rate.
Ahead of the GDP figures, payroll processor ADP said the private sector added 200,000 jobs in July, flying high about expectations.
That could spell big gains for the key monthly jobs report, due out Friday. The ADP report is usually seen as a precursor to the government's numbers.
The Fed will release a statement around 2 p.m. ET that could provide more insight into the current mindset of policymakers.
The Fed's various stimulus programs have played a big role in fueling the current bull market, and investors are looking for any hints about when its latest $85-billion-U.S.-a-month bond buying spree might ease.
Prices for the 10-year U.S. Treasury dropped sharply, boosting yields to 2.68% from Tuesday’s 2.60%. Treasury prices and yields move in opposite directions.
Oil prices acquired $1.10 to $104.18 U.S. a barrel.
Gold prices sank $17 to $1,307 U.S. an ounce.
