Stocks hearkened to Wednesday opening bell, and gained ground as metals and mining recovered from Tuesday’s hefty losses
The S&P/TSX composite index gained 40.95 points to open Wednesday at 15,161.97
The Canadian dollar added 0.07 cents to 81.83 cents U.S.
Among metals and mining issues, First Quantum Minerals hiked 38 cents, or 2.2%, in the first hour, to $17.83.
The bidding for Metro AG's department store chain Kaufhof is heating up, with the owner of rival Karstadt making a new takeover offer and talks with Canadian retailer Hudson's Bay continuing, according to sources. Bay shares gathered 14 cents, or 1.2%, to $11.88.
Raymond James raised the price target on Altius Minerals to $17.00 from $16.00. Altius shares gained six cents to $14.74.
Cowen and Company raised the price target on Ensign Energy Services to $13 from $11. Ensign shares tacked on a dime to $11.75.
On the economic beat, Statistics Canada said wholesale sales rose 0.8% to $53.9 billion in March after two consecutive monthly declines. Higher sales were recorded in five of seven sub-sectors, accounting for 66% of total wholesale sales.
ON BAYSTREET
The TSX Venture Exchange slid 0.67 points to 694.32
All but four of the 14 Toronto subgroups were climbed in the first hour of trading, as metals and mining advanced 1.4%, gold gained 1%, and energy strengthened 0.9%.
The four laggards were weighed mostly by a 6.6% drop in global base metals, while health-care took a hit of 0.3%, and industrials slumped 0.2%.
ON WALLSTREET
U.S. stocks traded in a narrow range on Wednesday following a record close on the Dow as investors awaited the afternoon release of the Fed meeting minutes.
The Dow Jones Industrials eked ahead of Tuesday’s all-time record by 8.11 points to 18,320.50, with Pfizer leading gains and McDonald's the greatest laggard.
The S&P 500 index faded 3.97 points to 2,123.86, with telecommunications leading three sectors higher and financials the greatest laggard.
The NASDAQ dipped 15.42 points to 5,054.61
Major earnings before market open included Lowe's, Hormel Foods, Staples, Target. After the bell, L Brands, NetApp, Salesforce.com, Williams-Sonoma, American Eagle Outfitters are all due to report.
Lowe's missed estimates by four cents with quarterly profit of 70 cents U.S. per share. Revenue missed forecasts, and same-store sales rose less than expected. JPMorgan Chase analyst Chris Horvers told the media that rival Home Depot has an advantage over Lowe's in both execution and store location.
Hormel Foods reported quarterly profit of 67 cents U.S. per share, five cents above estimates, although revenue was shy of forecasts. Hormel does say that its Jennie-O turkey business could be "significantly challenged" due to the impact of the bird flu outbreak in the U.S. However, Hormel did reaffirm its full-year earnings forecast
Staples matched estimates with adjusted quarterly profit of 17 cents U.S. per share, but revenue fell short and sales fell more than anticipated. Staples is in the process of merging with rival Office Depot, just two years after acquiring OfficeMax.
Authorities on Wednesday fined JPMorgan Chase, Citigroup, Barclay's, RBS and UBS a total of more than $5.5 billion U.S. for rigging rates, the U.S. Department of Justice said on Wednesday.
Investors are also looking ahead to a Friday speech from Fed Chief Janet Yellen for possible new clues on when the central bank may start raising interest rates.
Chicago Fed President Charles Evans said in Munich on Wednesday that a rate hike is not likely to be appropriate until early 2016.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.27% from Tuesday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices recovered 75 cents a barrel to $58.74 U.S.
Gold prices took on $2.80 to $1,209.50 U.S. an ounce.
