Markets in Toronto opened lower on Wednesday, as investors await the U.S. Federal Reserve's October minutes, which could provide further clues on the monetary stimulus program.
The S&P/TSX composite index dipped 19.07 points to begin Wednesday at 13,423.70
The Canadian dollar gained 0.15 cents to 95.67 cents U.S.
Canaccord Genuity raised the target price on Alimentation Couche-Tard to $79 from $69 on valuation, saying the shares remain attractively valued at current levels. Couche-Tard shares were unchanged at the opening at $72.92.
Canaccord Genuity cut the rating on Coastal Energy to sell from buy, saying CEPSA's proposed acquisition of the company will close at $19 per share as it has a limited chance of being presented with a higher offer. Coastal shares faded half a cent to $18.84.
CIBC cut the rating on Fortress Paper to sector underperform from outperform, believing operational improvements will be seen at Thurso in coming months, but the Chinese duty imposition drains the equity upside in the company. Fortress shares faded 35 cents to $4.35 in the day’s first hour.
On the economic calendar, Statistics Canada says wholesale sales hiked 0.2% to $49.8 billion in September, in contrast to a 0.3% hike projected by economists.
It was the third straight monthly improvement and sales increased in four of the seven subsectors, accounting for 45% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange subsided 2.37 points to 921.15
Nine of the 14 TSX subgroups began the day on the downside, mostly gold, which lost 1.6% of its lustre, while materials slid 1%, and consumer discretionaries faded 0.4%.
The five gainers were led by consumer staples, picking up 0.3%, while utilities and global base metals each advanced 0.2%.
ON WALLSTREET
Economic data and the U.S. Federal Reserve are taking centre stage Wednesday as investors look for a reason to keep the good stock market vibes going.
The Dow Jones Industrials nicked ahead 8.35 points, to begin the session at 15,975.40
The S&P 500 index eked up 0.97 points to 1,788.94. The NASDAQ moved ahead 5.70 points to 3,937.26.
Struggling retailer J.C. Penney reported a decline in quarterly revenue and same-store sales and a steepening loss compared to the year-ago quarter. But shares surged due to brightening hope for the retailer, which said that same-store sales pulled out of the gutter in October.
Deere & Co. reported that quarterly net income easily topped forecasts, but worldwide sales in heavy equipment took a dive during the period. Shares rose in early trading.
Lowe's reported a double-digit gain in quarterly profit, which CEO Robert Niblock attributed to the strengthening market for home improvement. But shares dipped as results missed forecasts.
Rival Home Depot reported stronger results and guidance on Tuesday.
Yahoo shares continue to rise in trading following the news on Tuesday that the company is boosting its stock buyback by another $5 billion U.S
Green Mountain Coffee Roasters is scheduled to report quarterly results in the afternoon.
The market is waiting for the release of the minutes from the Fed's most recent policy meeting later in the day.
Investors are looking for further evidence that the central bank will continue its stimulus program into 2014, extending the huge bond-buying spree that has supported the U.S. economic recovery and helped boost stock markets to record levels.
On the economic front, retail sales for the month of October rose more than expected. Consumer prices were relatively flat for the month, a sign that inflation remains tame.
Also this morning, the National Association of Realtors will release its monthly report on existing home sales.
Prices for 10-year U.S. Treasuries were unchanged, keeping yields at Tuesday’s 2.71%.
Oil prices gained 16 cents to $93.50 U.S. a barrel.
Gold prices slumped $12.70 to $1,260.80 U.S. an ounce.
