Equity markets in Toronto had developed some upward momentum by midday Wednesday, even as a decline in shares of Barrick Gold and a drop in commodity prices weighed on investor sentiment ahead of a policy statement from the U.S. Federal Reserve later in the day.
The S&P/TSX composite index took on 45.87 points to greet noon at 14,628.98
The Canadian dollar fell 0.12 cents at 91.24 cents U.S.
Given the recent runup in the TSX, experts say the index could be due for a correction. The benchmark is up about 7% this year.
Barrick's stock fell 1.3% after the miner reported a drop in first-quarter earnings and cut its forecast for 2014 copper production. Barrick was trading at $19.10 and was one of the most influential decliners on the TSX. Goldcorp shares lost 0.7% to $27.
Grocer Loblaw and IT services provider CGI Group Inc both rose after reporting quarterly results.
CGI Group's quarterly profit more than doubled, driven by a 7% rise in revenue and strong European bookings. The stock jumped 4.1% to $39.63. Loblaw advanced 2.5% to $46.93.
Financials, climbed as Toronto-Dominion Bank added 0.7% to $52.47, and Bank of Nova Scotia rose 0.4% to $66.18.
With oil prices dropping, shares of energy companies fell, and Suncor Energy shed 1% to $42.19.
In the economic docket, Statistics Canada reports today that gross domestic product inched up in this country by 0.2% in February, powered mostly by mining and oil and gas extraction as well as manufacturing.
The agency’s Industrial Product Price Index hiked 0.4% in March, mainly due to higher prices for meat, fish and dairy products.
StatsCan’s Raw Materials Price Index increased 0.6% in March, led by animals and animal products.
ON BAYSTREET
The TSX Venture Exchange remained negative 4.52 points to 995.53
All but three of the 14 Toronto subgroups were higher by noon ET. Consumer staples and information technology stocks each climbed 1.6%, while industrials popped 1.4%.
The three laggards proved to be energy and health-care issues, each down 0.7%, while gold slid 0.1%.
ON WALLSTREET
Investors looked past a weak report on U.S. economic growth Wednesday as they await the latest statement from the Federal Reserve.
The Dow Jones Industrial Average regained 14.44 points to 16,549.81
The S&P 500 eked up 1.18 points to 1,879.51, and the NASDAQ composite index was still negative 6.88 points to 4,096.66
Social media stocks were in focus after Twitter posted uninspiring first-quarter results late Tuesday. Twitter shares were down more than 10% in early trading, falling to their lowest level since the company went public last year.
Facebook shares fell in early trading, but were bouncing back as the morning wore on.
Energizer shares jumped 9% after the battery company announced plans to split into two companies, one for Energizer batteries and other household products and another for personal care brands such as Schick and Playtex.
In other corporate news, Time Warner reported earnings and sales that topped forecasts, helped by strong revenue from the Lego movie.
Shares of Royal Dutch Shell rose after the oil giant reported better-than-expected quarterly results and hiked its dividend. eBay shares declined a day after the online marketplace reported disappointing earnings.
Yelp is reporting after the bell.
Exelon agreed to acquire rival utility Pepco Holdings in a $6.8-billion U.S. all-cash deal.
Takeover talk continues overseas, with shares of French company Alstom rallying 8% in Europe after General Electric bid $13.5 billion U.S. to take over the firm's power divisions. German firm Siemens may make a counter offer as well.
Gross domestic product, the broadest measure of the U.S. economy, grew at just a 0.1% annual pace in the first quarter, the U.S. Bureau of Economic Analysis said. Economists had anticipated that winter weather would take a toll on growth, but the result was worse than most forecasts.
But not all the morning's economic news was bad. Payroll processor ADP said the private sector added 220,000 jobs in April. That's the strongest job growth since November.
Still to come, the Fed wraps up a two-day policy meeting with a decision on interest rates at 2 p.m. ET. The central bank is expected to reduce its asset purchases by another $10 billion U.S.
Prices for 10-year U.S. Treasuries gained some ground, lowering yields to 2.66% from Tuesday’s 2.70%. Treasury prices and yields move in opposite directions.
Oil prices dumped $1.77 to $99.51 U.S. a barrel.
Gold prices slipped $2.90 to $1,293.40 U.S. an ounce.
