Canada’s main stock index pared early-session losses to finish in slightly positive territory on Wednesday, helped by a comeback in energy stocks on a jump in crude prices, but the index remained broadly lower.
The S&P/TSX composite index squeezed higher 1.27 points to conclude the day at 15,347.34
The Canadian dollar gained 0.10 cents to 83.20 cents U.S.
Investors were cautious ahead of a U.S. Federal Reserve policy statement due on Wednesday afternoon that comes after data showed U.S. economic growth stalled in the first quarter, fortifying expectations that the Fed will be in no rush to hike interest rates.
Among the index’s heavily weighted movers, business software company OpenText fell $4.19, or 6.3%, to $62.46 after it reported disappointing quarterly results that were hurt by a soft Canadian dollar.
Other top decliners included two pipeline companies: Enbridge fell 81 cents, or 1.3% to $63.95, and Transcanada Corp slid one dollar, or 1.8%, to $56.04.
The index’s overall energy group climbed, however, with Canadian Natural Resources up 20 cents at $40.39, and Crescent Point Energy rising 46 cents, or 1.5% to $31.96.
The materials group squeezed out a slight gain, helped by advances by gold miners. In the group, Goldcorp climbed 36 cents, or 1.5% to $24.21.
Health-care stocks also proved solid, as Valeant Pharmaceuticals gained $10.20, or 4.1%, to $257.42.
On the economic front, Statistics Canada’s industrial product price index nicked up 0.3% in March, largely as a result of higher prices for energy and petroleum products, while its raw materials price index dropped 0.3%, during the same month, mainly because of lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange gained 2.15 points to 697.37
All but four of the 14 Toronto subgroups were down, as information technology stocks slid 2.2%, utilities hesitated 0.8%, and telecoms faded 0.7%.
The four gainers were led by health-care, which took on 1.2%, energy, better by 1%, and gold, climbing 0.9%.
ON WALLSTREET
U.S. stocks closed lower on Wednesday as investors remained on edge amid earnings as the Federal Reserve reaffirmed its data-dependent stance following a weak first-quarter Gross Domestic Product report.
The Dow Jones Industrials was off its lows of the early afternoon, but still finished negative 74.61 points to 18,035.53, with UnitedHealth the greatest laggard and Caterpillar leading gainers.
The S&P 500 index slid 7.91 points to 2,106.85, with health care leading seven laggards and energy the leading advancers.
The NASDAQ index shed 31.78 points to 5,023.64.
Salesforce.com closed up 5% after a spike of more than 15% to a new all-time high amid reports that it hired bankers on takeover offers.
MasterCard closed mildly higher after the world's number-two debit and credit card company reported a 17% rise in quarterly profit as people spent more using its cards and the company paid lower taxes.
Time Warner closed up 0.5% higher after the firm reported adjusted quarterly profit of $1.19 U.S. per share, 10 cents above estimates, with revenue also above forecasts. The company was helped by "March Madness" programming related to the annual NCAA college basketball tournament.
U.S. Steel closed down 11.6% after posting an adjusted quarterly loss of seven cents per share, surprising Street analysts who had expected a 12-cent-U.S.-per-share profit. Revenue also missed estimates, as U.S. Steel said it has been hurt by significant steel imports. The company also lowered its earnings outlook for the full year
Twitter closed down 9%, extending losses after it plunged more than 20% following the premature release of its quarterly earnings report Tuesday. The numbers disappointed investors with revenue falling short of Street estimates.
Lumber Liquidators said it's been advised that the Justice Department is seeking criminal charges against the company relating to the importation of certain products, and that the DOJ probe will likely cost it about $10 million U.S. The company also reported an unexpected loss, and said Chief Financial Officer David Terrell would depart in June.
Reports say Alibaba, the China-based online retail giant, has imposed a hiring freeze, in an effort to make the company more efficient.
Earnings continue to be in focus after restaurant stocks Buffalo Wild Wings and Panera missed expectations on both the top and bottom line.
Major earnings on Wednesday include Baidu,Marriott, Boston Beer andYelp after the bell.
The Federal Reserve Open Market Committee released its meeting statement on Wednesday afternoon that removed all calendar references and showed no new guidance on the timing of the rate hike.
The advance estimate of first quarter GDP showed an increase of 0.2%, a sharp slowdown from the fourth quarter's 2.2% pace and below expectations of 1% growth. The government cited the strong dollar and the West Coast port strikes as negative factors.
Pending home sales data for March showed an increase of 1.1%, the fastest rate since last summer.
Prices for 10-year U.S. Treasuries sagged, lifting yields to 2.05% from Tuesday’s 2%. Treasury prices and yields move in opposite directions.
Oil prices climbed $1.44 to $58.50 U.S.
Gold prices slid $9.60 to $1,204.30 U.S.
