Equity markets in Toronto fell broadly on Tuesday as investors took profits on Tuesday after touching a seven-month intraday high in the previous session.
The S&P/TSX composite index dipped 16.12 points to greet noon at 15,367.47
The Canadian dollar jumped 0.72 cents to 80.12 cents U.S.
Energy stocks, supported by higher crude prices, tempered losses, with the top 11 most influential gainers all oil and gas companies. Encana Corp rose 1.2% to $14.73, while Arc Resources climbed 2.5% to $23.66.
The most influential decliners on the index were Canada's two largest rail operators, Canadian National Railway, which fell 1.6% to $81.71, and Canadian Pacific Railway Ltd, which declined 2.4% to $230.64.
The two company's shares were hit after analysts cut their price targets.
Base metal prices touched near a four-week low amid a strong greenback and growing concerns over demand from China. The country, one of the world's biggest resource consumers, is set to give an update on its economic growth. Copper prices declined 0.9% to $5,939 U.S.
Media and cable company Shaw Communications Inc was also a major decliner after the company, hurt by a slide in video subscriptions, reported a 24% slide in profit. Shares were down 3.5% at $27.90.
ON BAYSTREET
The TSX Venture Exchange lost 0.83 points to 694.79
All but four of the 14 Toronto subgroups were lower by lunch hour, as health-care was negative 1.2%, while consumer discretionary and industrial stocks each suffered 0.9%.
The four gainers were led by energy, better by 1.2%, while global base metals took on 1%, and metals and mining prospered 0.5%.
ON WALLSTREET
U.S. stocks traded in a narrow range on Tuesday as investors digested the first of the major earnings reports and moderate economic data.
The Dow Jones Industrials moved forward 57.23 points to pause for lunch at 18,034.27, with Chevron leading gains and Microsoft the greatest laggard.
The S&P 500 index moved up 1.14 points to 2,093.57, with energy leading five sectors higher and information technology the greatest laggard.
The NASDAQ index slid 18.80 points to 4,969.45
Declines in rail stocks and airlines pressured the Dow transports to fall about 1%, with J. B. Hunt one of the few advancers. The trucking and transportation logistics firm posted a positive earnings report on Tuesday.
Norfolk Southern declined about 6% after reporting on Monday that it expected to earn $1.00 U.S. per share for the first quarter, below current consensus estimates of $1.25 U.S.
The rail operator said slower coal volumes and a reduction in fuel surcharge revenue are among the factors weighing on the bottom line. The warning negatively hit other rail stocks, like Union Pacific.
Shares of Zillow plunged after being halted in pre-market trade as the company issued guidance sharply below Street estimates.
JPMorgan's net income rose to $5.91 billion U.S., or $1.45 per share, in the first quarter ended March 31, from $5.27 billion, or $1.28 per share, a year earlier, according to Reuters. CEO Jamie Dimon said the company is getting safer and stronger, as well as gaining market share.
Wells Fargo posted earnings of $1.04 U.S. per share, six cents above estimates, with revenue also above forecasts. The report did break an 18-quarter streak of higher year-over-year earnings, as the bank deals with the impact of a lower interest rate environment.
Johnson & Johnson beat on both the top and bottom lines but reported an 8.6% decline in quarterly profit as the impact of a strong dollar on overseas revenue offset growing sales of its mainstay older drugs.
Retail sales showed an increase of 0.9%, slightly below expectations of a 1.1% month-on-month increase in overall spending. However, the figure was the first gain since late last year.
The Producer Price Index showed an increase of 0.2% in March, in line with expectations and breaking four consecutive months of declines.
Prices for 10-year U.S. Treasuries spiked, lowering yields to 1.87% from Monday’s 1.93%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.41 to $53.32 U.S.
Gold prices fell $3.20 to $1,196.10 U.S.
