The Toronto stock market moved into the green as the sun moved higher on Wednesday, following a slightly negative open.
The S&P/TSX composite index recovered 37.14 points to greet noon Wednesday at 15,514.31. The market, which is up 13% on the year so far, is gunning for a fifth straight day of gains
The Canadian dollar was down 0.03 cents at 91.37 cents U.S.
Sears Canada Inc. reported a net loss of $21.3 million, or 21 cents per share, in the second quarter, compared to a profit of $152.8 million, or $1.50, a year ago as the chain was impacted by expenses related to severance costs and impairment charges.
Revenues were $845.8 million compared to $960.1 million year-over-year while same-store sales, a key measure in retail, dropped 6.8%, which the company attributed partly to an unseasonably cool spring.
Metals stocks proved the strongest Wednesday morning, with First Quantum Minerals up 74 cents, or 3.1%, to $24.98. Industrial stocks also performed well, with Air Canada barreling ahead 18 cents, or 2.1%, to $8.75.
Speaking of things economic, Statistics Canada reported this morning that wholesale sales rose 0.6% to $53.0 billion in June, a third consecutive increase.
The agency says gains in five sub-sectors, which together represented 69% of wholesale sales, more than offset a decline in motor vehicle and parts. Excluding this latter sub-sector, wholesale sales rose 1.2%.
ON BAYSTREET
The TSX Venture Exchange sagged 0.46 points to 997.10
All but four of the 14 Toronto subgroups were positive by noon hour, as metals and mining stocks up 1.8%, global base metals up 1.4%, and industrials better by 0.7%.
The three laggards were consumer staples, down 0.8%, consumer discretionaries, down 0.2%, and telecoms off 0.1%. Real-estate issues were flat midday.
ON WALLSTREET
U.S. stocks inched higher Wednesday after two days of gains, ahead of the release of minutes from the most recent Federal Reserve meeting, as investors brushed off bleak earnings forecasts from some retailers like Lowe's and Target.
The Dow Jones Industrials moved up 29.26 points midday to 16,948.85
The S&P 500 notched higher 2.06 points to 1,983.66, trading not far from its July 24 record close at 1,987.98. The NASDAQ composite recovered 0.89 points to 4,528.40
Lowe's Companies pulled to nearly unchanged at $51.48 U.S., rebounding from a session low of $49.71 after it cut its full-year sales forecast. The world's number-two home improvement products retailer reported better-than-expected second-quarter results.
Fellow retailer Target Corp rose 1% to $59.84 U.S., shaking off initial declines after second-quarter earnings fell shy of analysts' estimates and the company cut its full-year outlook.
American Eagle Outfitters was a bright spot in the retail sector after second-quarter results beat expectations and it forecast third-quarter earnings in line with the current estimate. Its shares jumped 10.8% to $12.84 U.S.
Hertz Global Holdings tumbled 10.5% to $28.26 U.S. after the rental car company withdrew its full-year financial forecast and said it expects 2014 results to be "well below" its previous guidance due to business challenges and costs.
Investors will pore over the Fed minutes, which will be released at 2:00 p.m. ET, for clues on how soon the central bank plans to hike interest rates. At a two-day meeting of the Federal Open Market Committee in July, the Fed had trimmed its monthly bond-buying program by an additional $10 billion U.S.
An annual meeting of top central bankers in Jackson Hole, Wyoming, from Thursday through Saturday, will also be watched for possible insight into the path for U.S. monetary policy.
Prices for 10-year U.S. Treasuries regained strength, lowering yields to Tuesday’s 2.41%. Treasury prices and yields move in opposite directions.
Oil prices gained 79 cents to $95.27 U.S. a barrel.
Gold prices dropped two dollars at $1,294.70 U.S. an ounce.
