Equities in Canada’s biggest centre dropped on Tuesday as fresh concerns about oversupply hit oil prices and shares of energy producers, while the market remained focused on the outcome of a crucial U.S. Federal Reserve policy meeting.
The S&P/TSX composite index faded 87.02 points, to greet noon at 14,775.74
The Canadian dollar inched up 0.05 cents to 78.32 cents U.S.
Financials fell as Bank of Canada lost 1.2%to $75.42, and Bank of Nova Scotia slipped 1.4% to $62.86.
Health-care issues also fell, as Valeant Pharmaceuticals descended 1.4% to $254.83.
Shares of energy producers were down as Suncor Energy gave back 1.6% to $34.65, and Canadian Natural Resources was down 2.3% at $36.26.
Bombardier's stock jumped 2.8%, to $2.56, on news that a new privately held Malaysian airline intends to buy 20 Bombardier CS100 aircraft for $1.5 billion U.S.
Investors hope that the two-day Federal Open Market Committee meeting that got underway on Tuesday would help shed light on when the U.S. central bank could raise interest rates.
On the economic front, Statistics Canada reported that manufacturing sales in this country fell 1.7% in January due mostly to a price-induced decline of 11.9% in sales of petroleum and coal products.
ON BAYSTREET
The TSX Venture Exchange shed 4.92 points to 658.92
All but one of the 14 Toronto subgroups remained lower midday, with financials and health-care each falling 1.1%, materials skidding 1%.
Only utilities gained, picking up 0.4%.
ON WALLSTREET
U.S. stocks traded lower on Tuesday as investors focused on the Federal Open Market Committee's two-day meeting, which could shed light on the timing of an interest rate hike.
The Dow Jones Industrials fell 169.22 points to 17,808.20. DuPont and Caterpillar were among the greatest laggards as all blue-chips except Coca-Cola fell.
The S&P 500 jettisoned 13.24 points to 2,067.95, with materials leading all ten sectors lower.
The NASDAQ index subtracted 12.45 points to 4,917.06
DSW beat estimates by seven cents with adjusted quarterly profit of 35 cents U.S. per share, with sales easily beating estimates. DSW saw comparable store sales rise 7.6%, and it also raised its quarterly dividend to 20 cents U.S. per share from 18.75 cents per share.
Burlington Stores reported adjusted quarterly profit of $1.43 U.S. per share, 11 cents above estimates, with revenue also exceeding forecasts. Burlington saw comparable store sales rise 6.7% from a year earlier.
Alibaba was upgraded by Stifel Nicolaus to buy from hold and added to the Stifel "Select List." Stifel cites long-term benefits from improvements to the online retailer's platform, and notes its multiples compare favorably to those of competitor Amazon.com.
EBay has launched a live auction platform for Sotheby's, with the first sale scheduled for April 1.
American Airlines was named to replace Allergan in the S&P 500 after the close of trading on March 20. Allergan is in the process of being purchased by Actavis.
Last week, Skyworks Solutions replaced PetSmart in the index on BC Partner's acquisition of the pet supplies retailer.
Housing starts fell 17% in February to the lowest level in a year as harsh winter weather took its toll. More encouragingly, building permits rose 3% and January housing starts were revised slightly higher to 1.08 million.
The FOMC meeting kicks off Tuesday, with its highly anticipated statement and press conference expected on Wednesday afternoon.
Investors are looking at whether or not "patient" remains in the statement as an indication of when short-term interest rates might go up.
The U.S. dollar continued to ease, falling more than 1% in early trade, while the euro edged above $1.06.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.06% from Monday’s 2.10%. Treasury prices and yields move in opposite directions.
Oil prices went lower 47 cents to $43.41 U.S.
Gold prices dropped $3.70 to $1,142.80 U.S.
