Stocks pointed slightly upward soon after Wednesday’s opening bell, as investors largely shrugged off the newest moves – or lack of them – from the Bank of Canada.
The S&P/TSX composite index added 11.82 points to open Wednesday at 15,062.63
The Canadian dollar fell 0.05 cents to 80.38 cents U.S.
National Bank of Canada reported a 12.5% rise in quarterly profit, largely helped by its financial markets business. The company's net income attributable to shareholders rose to $388 million, or $1.13 per share, in the second quarter ended April 30 from $345 million, or $1.01 per share, a year earlier.
National shares picked up 59 cents, or 1.2%, to begin the day at $49.93.
Crescent Point Energy Inc. said on Tuesday it has agreed to acquire Legacy Oil + Gas Inc for shares and debt worth $1.53 billion, adding oil production in its core regions in Western Canada and North Dakota. Crescent Point is offering 0.095 of its own shares for each Legacy share. Based on Crescent Point's closing price on Monday of $30.00, the offer is worth $2.85 per Legacy share.
Crescent Point shares gave back $1.77, or 5.9%, to $28.05.
General Electric Co is in advanced talks to sell assets of its vehicle fleet management business, GE Capital Fleet Services, to Element Financial Corp, Bloomberg reported, citing people familiar with the matter. While a deal has not yet been reached, GE hopes to draw up terms of a sale by the end of the quarter, Bloomberg reported.
Element shares lost a dime to $19.00
Air Canada said on Tuesday it plans to redeploy capital toward share buybacks, debt repayment and increased investment in new aircraft, as its once huge pension fund deficit has now been wiped out much earlier than expected. Its pension fund deficit stood at $4.2 billion in 2012, and Air Canada struck a deal with the government in 2013 that gave it more time to fix the funding gap.
Shares in the Maple Leaf airline gained 36 cents, or 2.9%, to $12.94.
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 0.75%, and the bank rate is correspondingly 1% and the deposit rate is 0.5%
ON BAYSTREET
The TSX Venture Exchange inched up 0.04 points to 692
Eight of the 14 Toronto subgroups were higher in the early going, led by metals and mining, strengthening 1%, while consumer discretionary stocks took on 0.7%, and industrials were 0.6% to the good.
The half-dozen laggards were weighed mostly by energy stocks, fading 0.4%, while health-care were 0.2% sicker, and consumer staples dipped 0.1%.
ON WALLSTREET
U.S. stocks traded higher on Wednesday, recovering some of Tuesday's sharp decline, amid continued rise in the dollar and bond yields.
The Dow Jones Industrials recovered 91.92 points to 18.133.46, after yesterday’s triple-digit header, with Cisco leading all blue chips higher.
The S&P 500 index rebounded 12.73 points to 2,116.93, with information technology leading all 10 sectors higher.
The NASDAQ regained 34.96 points to 5,067.71
Earnings out before the open on Wednesday included Michael Kors, Costco, Tiffany, Toll Brothers, and Movado.
Tiffany earned 81 cents U.S. per share for its latest quarter, 11 cents above estimates, and revenue was also well above forecasts despite the negative effects of a strong dollar. The results follow a downbeat forecast given by Tiffany earlier this year.
Michael Kors fell one cent shy of estimates with quarterly profit of 90 cents U.S. per share, with revenue essentially in line. The company, however, reported its slowest sales growth in three and a half years, and its full-year forecast, however, is below Street estimates.
Toll Brothers earned 37 cents U.S. per share for its latest quarter, two cents above estimates. The luxury home builder did see revenue come in below estimates as the number of homes sold fell 2%
DSW reported quarterly profit of 53 cents U.S. per share, six cents above estimates, and revenue also was above analyst forecasts. The company's results were led by a jump in athletic footwear sales, though it did see growth in all its major categories.
Prices for 10-year U.S. Treasuries dipped, raising yields to 2.17% from Tuesday’s 2.14%. Treasury prices and yields move in opposite directions.
Oil prices receded 23 cents a barrel to $57.80 U.S.
Gold prices dipped $1.90 to $1,185.90 U.S. an ounce.
