Equity markets in Canada’s biggest centre slipped on Wednesday as investors remained nervous ahead of Federal Reserve comments expected to clarify the U.S. central bank's plans to raise interest rates.
The S&P/TSX composite index settled 34.06 points to greet noon at 14,864.47
The Canadian dollar regained 0.09 cents to 78.29 cents U.S.
Financials declined with Toronto Dominion Bank losing 0.3% to $53.95, and Bank of Nova Scotia slipped 0.4% to $63.06.
Among shares of energy companies, TransCanada gave back 0.8%to $55.04 and Canadian Natural Resources lost 0.8% to $37.32.
Metals and mining shares declined with First Quantum Minerals off 4.1% to $13.29.
Consumer staples provided one of the few sparks on the market during the morning, with Alimentation Couche-Tard ahead 3.1% to $50.74.
On the economic front, Statistics Canada reported that wholesale trade for January recorded the largest monthly decline since January 2009, decreasing 3.1% to $53.7 billion, which more than offset the gain in December.
The agency goes on to say sales were down in four of seven sub-sectors, led by motor vehicle and parts. Excluding this sub-sector, wholesale sales declined 1.3%.
ON BAYSTREET
The TSX Venture Exchange inched down 0.27 points to 658.94
All but four of the 14 Toronto subgroups were lower by noon, with metals and mining weakening 1.4%, materials down 1.1%, and global base metals off 1%.
The four gainers were led by consumer staples, up 1.1%, health-care gaining 0.8%, energy better by 0.5%.
ON WALLSTREET
U.S. stocks traded lower on Wednesday as investors awaited signals on the timing of an interest rate hike from the Fed statement and press conference expected in the afternoon.
The Dow Jones Industrials fell 104.62 points to 17,744.46
The S&P 500 8.79 points to 2,065.49
The NASDAQ index dipped 14.20 points to 4,923.24
FedEx posted earnings that beat on revenue that was slightly below estimates. The company's full-year guidance was also slightly lower than expected, but its commentary was generally upbeat and analysts have pointed out that FedEx guidance tends to be on the conservative side.
General Mills reported adjusted quarterly profit of 70 cents U.S. per share, three cents above estimates, with revenue also beating Street consensus. The cereal maker and food producer said it expects to continue "strong growth" during the current quarter.
Williams-Sonoma, Guess and Cintas are all due to report after the bell.
Alibaba's share lock-up expires on Wednesday, allowing the Chinese e-commerce and web conglomerate to sell up to 437 million of its shares.
Apple is scheduled to replace AT&T in the Dow Jones industrial average on Wednesday after the bell, as Visa implements a four-for-one stock split.
American Airlines will replace Allergan in the S&P 500 after the close of trading on March 20. Allergan is in the process of being purchased byActavis.
Last week, Skyworks Solutions replaced PetSmart in the index on BC Partner's acquisition of the pet supplies retailer.
The Federal Open Market Committee is scheduled to conclude its two-day meeting on Wednesday, with investors watching to see if "patient" remains in the statement or not. The highly anticipated statement is expected at 2 p.m. ET, with a press conference by Fed Chair Janet Yellen at 2:30 p.m.
Investors will also watch to see if the stronger U.S. dollar figures into the Fed statement. The dollar continued to hold at highs, while the euro traded below $1.06.
In more housing news, weekly mortgage applications fell 3.9% despite the drop in interest rates, the Mortgage Bankers Association reported.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.02% from Tuesday’s 2.06%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.06 to $42.40 U.S.
Gold prices regained $2.80 to $1,151.00 U.S.
