Stocks were iffy at the end of Wednesday’s trading session, amid somewhat uncertain signals sent by sources on both sides of the border.
The S&P TSX Composite Index turned lower by 52.68 points to close at 11,620.16
There are indications the pace of the Canadian economy could be faltering. The Conference Board of Canada is forecasting that the country’s economic growth will continue at a slower pace in the second half of this year and in 2011.
The think-tank says the outlook for Canada depends largely on a recovery in U.S. household spending, which remains fragile, as Wednesday’s U.S. retail report and the Fed forecast indicate.
The consumer discretionary group was down with convenience store operator Alimentation Couche-Tard Inc. off 51 cents to $19.99 while grocer Metro Inc. gave back $1.12 to $42.80.
The TSX energy sector was down after the U.S. Energy Information Administration reported Wednesday that crude inventories declined 5.1 million barrels in the week ended July 9, about double the drop that had been expected.
Among energy issues, Suncor Energy declined 32 cents to $32.86 and Canadian Oil Sands Trust backed off 33 cents to $27.41.
Mining stocks were also weak with the base metals sector off, the September copper contract on the New York Mercantile Exchange unchanged at $3.02 U.S. a pound. Equinox Minerals was down eight cents to $4.22 and HudBay Minerals up six cents at $12.06.
In other corporate news, Corus Entertainment Inc. had a $31.4-million profit for its fiscal third quarter, worth 39 cents per share, compared to a year-earlier loss of $145 million or $1.81 per share. The broadcaster’s revenues increased 12%. Corus shares fell 19 cents to $19.18.
West 49 Inc. shares fell 13 cents to $1.28 after an American sports apparel retailer decided against making a bid for the Canadian sportswear firm. The stock jumped last week after Zumiez Inc. said it might be prepared to top a $99-million takeover offer from Australia’s Billabong International.
Shares in money-management firm Sprott Inc. were up 30 cents or 9.1% to $3.60 after Eric Sprott said he is stepping down as chief executive from the firm he founded. The company said Tuesday that he will become chairman of Sprott Inc. and chief investment officer of Sprott Asset Management LP.
The 65-year-old Sprott said it was time to work on a succession plan and he expects the move will give him more time to spend running the firm’s funds. Peter Grosskopf, who was president of Cormark Securities, takes over as CEO.
The Canadian dollar was 0.11 cents lower at 96.67 cents U.S.
ON BAYSTREET
All but three of the 14 TSX subgroups were lower Wednesday. The worst off was the consumer staples, down 1.1%, followed by energy, down 0.6% and metals and mining, sliding 0.5%.
The three gainers were in information technology, up 0.4%, real-estate, gaining 0.2% and gold, inching up 0.1%.
The TSX Venture Exchange gained but 0.45 points to 1,384.56 while the Nasdaq Canada index was 4.76 points worse off at 637.58
ON WALLSTREET
In New York, stocks softened Wednesday after meeting minutes from the Federal Reserve raised concerns about the economy
The Dow Jones industrial average moved ahead, but only 3.70 points, to finish the day at 10,366.72
The S&P 500 index backpedaled 0.17 points to 1,095.17. The Nasdaq composite index added 7.81 points to 2,249.84
Stocks had posted modest gains earlier in the session as investors weighed strong corporate earnings against a dour report on retail sales. But the advance faded after the Federal Reserve released minutes from its June policy meeting.
The central bank lowered its forecast for U.S. gross domestic product for 2010 to a range between 3% and 3.5%, according to the minutes. In April, the Fed had projected growth of between 3.2% and 3.7% for the year.
On Tuesday, the major indexes surged as investors cheered strong earnings from aluminum giant Alcoa and a well-received auction of Greek debt.
Intel continued the trend after the market closed Tuesday. The chipmaker reported its best quarter ever and raised its outlook for sales growth.
But traders said the tone was more cautious Wednesday with several more companies due to post results this week. A dour report on retail sales and a big drop in mortgage applications also weighed on the market.
Twenty-one S&P 500 companies will announce results this week, with most of the rest spread out over the next three weeks.
Second-quarter earnings are expected to be up 27%, according to trackers at Thomson Reuters. But investors are particularly focused on what corporate leaders expect for the second half of the year.
Among the big names reporting results this week are Google, JPMorgan Chase, Bank of America and Citigroup.
Economically speaking, the U.S. Commerce Department said retail sales fell 0.5% in June after dropping 1.1% in May, while sales excluding autos slipped 0.1%.
Economists surveyed by Briefing.com expected total sales to have fallen 0.2%, and sales excluding autos were forecast to have held steady after falling 0.8% in May.
Mortgage applications to buy a home fell last week to the lowest level in more than 13 years, according to the Mortgage Bankers Association.
Treasury prices jumped, lowering yields on the 10-year note to 3.10% from Tuesday’s 3.11%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil faltered 31 cents to $76.84 U.S.
Gold prices slipped four dollars to $1,209 U.S. an ounce.
