Stocks in Toronto were virtually unchanged early Wednesday, following the Bank of Canada's interest rate decision, as concerns about the prospect of tighter Chinese monetary policy weighed on investor sentiment.
The S&P/TSX composite index poked up 1.14 points to begin Wednesday at 13,249.20
The Canadian dollar dumped 0.77 cents to 96.42 cents U.S.
Canadian Pacific Railway, Canada's number-two rail operator, reported a 45% jump in third-quarter profit as freight revenue rose and operating costs fell. Shares charged ahead $5.16, or 3.8%, to begin the day at $139.90.
Encana Corp reported its second straight quarterly profit as its oil and natural gas liquids volumes nearly doubled. Encana shares added a penny to $18.80.
Canadian National Railway, the focus of fresh scrutiny after one of its trains derailed and caught fire last weekend, reported a market-beating third-quarter profit and record revenue on Tuesday, as it announced a two-for-one stock split and share buyback plan. CN shares took $2.19, or 2%, to $111.94.
Celestica said its third-quarter net profit rose 31%, helped by higher demand from telecom companies for its networking equipment. Net income rose to $57.4 million, or 31 cents per share, in the third quarter ended Sept. 30, from $43.7 million, or 21 cents per share, a year earlier. Analysts on average had expected earnings of 21 cents per share. Celestica shares gained 36 cents, or 3.3%, to $11.14.
Empire Co., the operator of Canadian grocery chain Sobeys, said on Tuesday that Canada's competition watchdog approved its acquisition of substantially all of Safeway Inc's assets in Canada. Empire shares gained $1.35 to $77.50.
Goldcorp has secured the environmental permit it needs to progress with its copper and gold El Morro project in the north of Chile. Goldcorp moved ahead 10 cents to $27.09.
On the economic slate, the Bank of Canada left its overnight interest rate unchanged at 1%, where it’s now been since September 2010.
The bank’s next rate-setting decision is Dec. 4.
ON BAYSTREET
The TSX Venture Exchange erased 5.46 points to 966.22
Eight of the 14 Toronto subgroups were higher at the outset, led by industrials, up 1.1%, telecoms, up 0.9%, and utilities, up 0.6%.
The half-dozen laggards were weighed mostly by metals and mining stocks, sliding 2.6%, global base metals, down 1.3%, and energy, off 0.9%.
ON WALLSTREET
Stocks retreated from record highs Wednesday morning as investors focused on corporate earnings, including a dour outlook from economic bellwether Caterpillar.
The Dow Jones Industrials doffed 64.99 points to begin Wednesday at 15,402.70
The S&P 500 index lost 11.08 points to 1,743.59. The NASDAQ backtracked 34.76 points to 3,894.80.
Dow component Caterpillar reported a slump in sales and earnings, noting that a slowdown in the mining sector has taken a bite out of heavy equipment manufacturing. Caterpillar shares were down nearly 6%.
But Boeing, which is also in the Dow, rose 5% after the company reported a surge in quarterly profit and revenue as the aircraft manufacturer works its way through a backlog of orders. It appears the government shutdown did not have a big impact on defense contractors.
Rival Northrop Grumman reported earnings and sales above expectations and raised its outlook for the year.
Shares of Broadcom plunged 7% after the chipmaker said Tuesday that sales will be below analysts' expectations in the fourth quarter.
AT&T is scheduled to report after the close.
So far, 80 of the 130 S&P 500 companies have beat expectations, according to S&P Capital IQ. But many analysts still expect relatively weak earnings for the rest of the year.
Shares of Corning rallied after the company announced a $2-billion U.S. stock buyback, as well as a deal to take full control of a partnership with Samsung Display, which manufactures LCD glass used by makers of smartphones and tablets.
Netflix shares bounced back from a sharp decline Tuesday, even though hedge fund manager Carl Icahn revealed late Tuesday that he had reduced his stake in the company.
Prices for the 10-year U.S. Treasury gained strength, lowering yields to 2.49% from Tuesday’s 2.51%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.79 to $96.51 U.S. a barrel.
Gold prices sank $9.30 to $1,333.10 U.S. an ounce.
