Stocks reversed course Wednesday and faded closer to the breakeven point as a brief rally in oil prices fizzled.
The Toronto Stock Exchange's S&P/TSX composite index pared gains by the final bell but remained positive 15.12 points to 12,937.59, after plumbing depths Tuesday it had not seen since October 2013.
The Canadian dollar seesawed much of the day, but gained 0.10 cents to 73.71 cents U.S.
Energy and raw-materials producers, which account for 30% of the broader index, have fallen at least 20% this year to lead declines in the S&P/TSX.
Pipeline companies were among the most influential gainers on the day, with Enbridge up $1.27, or 3%, to $43.13 and TransCanada Corp advancing $2.78, or 6.8% to $43.80.
Heavyweight producers also finished higher, with Suncor Energy adding 43 cents, or 1.2%, to $35.38, and Canadian Natural Resources gaining nine cents to $28.94.
Financials inched up, with Toronto-Dominion Bank rising 63 cents, or 1.2%, to $53.78, and Bank of Nova Scotia up six cents to $57.52.
Laurentian Bank of Canada slid $1.96, or 3.6%, to $51.93, after posting a fiscal fourth-quarter loss that included $78.4 million in costs tied to restructuring and impairments, and selling shares to bolster its balance sheet.
The group had weighed heavily on Tuesday after all the major banks last week reported more bad loans in the energy sector than a year ago. Investors worry this could turn into more writedowns for the lenders.
ON BAYSTREET
The TSX Venture Exchange dropped one point to 505.34.
Seven of the 13 TSX subgroups were higher by session’s end, with metals and mining better by 3.9%, gold ahead 1%, and materials improved 0.6%.
The half-dozen laggards were weighed most by health-care, off 2%, while consumer discretionaries and information technology each down 1.7%.
ON WALLSTREET
American stocks traded lower Wednesday, shaking off an earlier boost from news of a potential merger, as investors took in a renewed decline in oil prices.
The Dow Jones industrial average plummeted 75.7 points to 17,492.30. Chevron and Exxon Mobil were also among the top advancers, boosted by gains in oil prices. Apple was the greatest weight on the index.
The S&P 500 dropped 15.93 points to 2,047.66. Energy gained 3%, and materials picked up 4%, continuing to lead S&P advancers.
The NASDAQ index sank 75.38 points to 5,022.87, as Apple shed over 2% and biotech stocks declined after both shooting up Tuesday.
Shares of Dow Chemical and DuPont both jumped more than 10% after news the two chemical giants were expected to merge by Thursday. The deal was first reported by The Wall Street Journal Tuesday and would likely be followed by a separation into businesses focusing on agricultural, materials services, and specialty products operations.
Pipeline operator Kinder Morgan late Tuesday cut its quarterly dividend 75% to 12.5 cents U.S. a share. Shares closed up $1.05, or 6.7%, to $16.77 U.S.
Freeport-McMoran said it will suspend its common stock dividend, further revise its oil and gas capital spending plans, and curtail copper production "in response to market conditions." Freeport shares advanced 27 cents, or 4%, to $7.01 U.S.
Yahoo confirmed Wednesday it will not spin off its stake in Alibaba. Sources said that Yahoo would not move forward with the plan. The Internal Revenue Service earlier this year declined to rule on whether the transaction would be tax-free.
Shares of Yahoo were lower 52 cents, or 1.5%, to $34.34 U.S.
Oil prices traveled sharply higher, then moved lower, just as quickly around the U.S. Energy Information Administration report, which showed weekly crude inventories declined. However, some media outlets noted the report also said distillate inventories jumped by five million barrels, double the forecast and the sharpest rise since January, while demand for the fuels fell to its lowest level since 1998.
Prices for the 10-year Treasury regained lost ground, dropping yields to Tuesday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices gave back 12 cents a barrel to $37.39 U.S.
Gold prices weakened $2.11 to $1,072.85 U.S. an ounce.
