The Toronto stock market was lower as traders worried about the impact of a partial U.S. government shutdown, now in its second day, and an approaching deadline for raising the U.S. government's debt ceiling.
The S&P/TSX composite index fell 23.03 points to greet noon at 12,824.41
The Canadian dollar sagged 0.06 cents to 96.79 cents U.S.
Telecoms had its worst in the morning, weighed by Rogers Communications, down 1% to $43.90. Energy stocks fell as well, with Canadian Natural Resources sliding 1.5% to $32.32.
On the other hand, gold stocks soared, most notably Alacer Gold shooting up 5.7% to $3.15. Barrick Gold gained 3% to $19.16.
ON BAYSTREET
The TSX Venture Exchange forged ahead 1.44 points to 943.48
Eight of the 14 Toronto subgroups were lower, weighed mostly by telecoms and energy stocks, each down 0.7%, while financials suffered 0.6%.
The half-dozen gainers were led by gold, up 1.9%, materials, ahead 1.4%, and metals and mining, surging 0.8%.
ON WALLSTREET
After rising on the first day of the U.S. government shutdown, investors are becoming more alarmed about the ramifications of the political stalemate in Washington.
The Dow Jones Industrials remained negative 79.15 points – well off its lows of the morning -- to break for lunch at 15,112.50
The S&P 500 index dipped 4.99 points to 1,690.01. The NASDAQ shrank 10.02 points to 3,807.96
The biggest worry now: the potential for a government default on October 17. If Congress fails to raise the debt ceiling, the U.S. government will be unable to pay all of its bills later this month.
Treasury Secretary Jack Lew said Tuesday that the government has started to use the last of its "extraordinary measures" to ensure it stays below debt ceiling.
With Congress unable to agree on a deal to fund the government past Monday, more than 800,000 federal workers are being furloughed without pay this week. In addition, government agencies are curtailing their services, and federal museums, parks and monuments are closed to the public.
Shares of agriculture technology firm Monsanto dropped after the company missed earnings expectations.
Shares of Tesla fell following an analyst downgrade. The stock still remains one of the best performers of the year as individual investors have embraced the maker of the electric Model S.
Many investors and analysts are skeptical of its current value. Even after Wednesday's dip, at $190 U.S. per share, Tesla is overvalued compared to where Wall Street analysts think it should be trading.
Despite a drop in the overall stock market, several Internet companies hit new 52-week highs, including Priceline, Amazon, Netflix and Yahoo
The IPO boom continued this week despite the government shutdown. Three companies debuted and two of them quickly shot higher.
Real estate broker Re/Max jumped more than 20%, and Burlington Holdings, the owner of the Burlington Coat Factory, spiked more than 45%.
But the parent company of the iconic Empire State Building disappointed. Shares of the building's owner, the Empire State Reality Trust, were up just 3% in their debut. And that's after the company priced its offering at the low end of its range Tuesday night.
Payroll processor ADP's monthly report on private-sector jobs showed that the U.S. added 166,000 jobs in September, slightly below expectations. The report has more significance this month than usual. It appears increasingly unlikely that the U.S. government's monthly employment report will be released this Friday because of the government shutdown.
Prices for the 10-year U.S. Treasury gained ground, lowering yields to 2.60% from Tuesday’s 2.65%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.65 to $103.69 U.S. a barrel.
Gold prices leaped $30.90 at $1,317 U.S. an ounce.
