The Toronto stock market inched lower on Wednesday as oil prices pulled back from recent gains and the European economy showed improvement.
The S&P/TSX composite index was 4.38 points below breakeven to greet noon at 12,637.81
The Canadian dollar gained 0.21 cents to 96.89 cents U.S.
Shares of Canada's biggest wireless companies remained in the spotlight with attention focused on whether U.S. telecom giant Verizon could set up shop in this country. Industry Minister James Moore posted a tersely worded letter on his website on Tuesday in response to criticism from a board member of BCE Inc., the parent company of Bell.
The TSX telecom sector was down with BCE shares two cents higher at $41.82.
Shares of Metro Inc. were down more than 3.5% or $2.48, to $69.47 after it unveiled plans to reorganize its Ontario grocery retail network over the coming months, re-branding some of the 15 stores to the Food Basics discount banner, of which an unspecified number could be closed.
It also agreed to operate Target's in-store pharmacies in Quebec where the U.S. retailer is expected to open about 25 stores in the province this fall.
Metro also reported its third-quarter profits were $149.8 million, increasing about 4% from $144.4 million the same time last year. Sales dropped nearly 1% to $3.57 billion.
Home improvement retailer Rona Inc. posted a second-quarter loss of $38.7 million from continuing operations in the second quarter, reversing a profit in the same period last year, as it recognized restructuring costs and impairment charges related to its recovery plan.
Sales for the quarter were also down, falling to $1.25 billion from $1.3 billion -- missing analyst estimates.
Rona shares fell 36 cents to $10.90.
B2Gold Corp. posted a big jump in second-quarter earnings on a royalty sale as well as increased revenues. The company earned $33.1 million, or five cents per share, up from $11.9 million, or three cents per share as gold revenue rose to $122.6 million from $57.3 million a year ago. Shares rose 3% to $3.22.
ON BAYSTREET
The TSX Venture Exchange gained 0.79 points to 925.93
Nine of the 14 Toronto subgroups were lower midday. Consumer staples shrank 1%, while utilities darkened 0.9%, and telecoms lost 0.6%.
The five gainers were led by gold, up 4.5%, materials, 2.6%, and metals and mining, 1.2%.
ON WALLSTREET
U.S. stocks were slightly lower Wednesday morning, as investors await remarks from St. Louis Fed President James Bullard. He will be delivering two speeches in Paducah, Kentucky this afternoon.
The Dow Jones Industrial Average remained negative 80.71 points to 15,370.30
The S&P 500 index was off 5.83 points to 1,688.33. The NASDAQ shed 7.85 points to 3,676.79
Bullard is a voting member on the Federal Reserve's policy-making committee, and investors will be listening closely for any hints that the central bank will start slowing its bond-buying program at their meeting next month.
Apple extended gains in morning trading and surpassed $500 U.S., a level it has not topped since late January. The stock rallied on news that investor Carl Icahn has taken a stake in the company, calling it "extremely undervalued."
Shares of BlackBerry also continued to build momentum, gaining about 2%, as investors grow more confident that the struggling smartphone maker may take itself private.
On Monday, BlackBerry said its board has formed a special committee to look into "strategic alternatives," including the possibility of selling the company.
Meanwhile, Macy's shares fell more than 4%, after the retailer reported weaker-than-expected sales in the second quarter. The company sent investors a mixed signal, noting upcoming back-to-school sales could be strong, while simultaneously cutting its outlook for the year overall.
The report sparked pessimism about other retailers, with traders noting concerns about J.C. Penney, which is scheduled to report its second quarter earnings on August 20.
Cisco Systems will report its latest quarterly earnings after the closing bell.
Prices for the 10-year U.S. Treasury eked lower, raising yields to Tuesday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices dipped 25 cents to $106.58 U.S. a barrel.
Gold prices picked up $11 to $1,331.50 U.S. an ounce.
