Equities in Canada’s largest market were virtually unchanged moving into Wednesday afternoon, weighed by a plunge in shares of Home Capital Group after the mortgage lender agreed to a major credit line, while energy stocks moved higher as oil prices reversed losses.
The S&P/TSX Composite Index eked higher 2.49 points to approach noon at 15,747.68
The Canadian dollar recovered 0.07 cents at 73.74 cents U.S.
Home Capital fell 58.7% to $7.06 after the alternative lender said it would secure a $2-billion credit line to shore up its shrinking balance sheet.
Other influential decliners included Burger King and Tim Horton parent Restaurant Brands International, which fell 4.5% to $75.82 despite reporting profit and revenue that beat expectations.
Teck Resources advanced 3% to $29.71 after it said it would double its dividend payout.
Industrials rose slightly, led by the country's two main railway companies after recent solid results. Canadian National Railway added 0.8% to $99.90 while rival Canadian Pacific Railway added 1% to $212.08.
On matters macroeconomic, Statistics Canada reported retail sales declined 0.6% to $47.8 billion in February, this, after a 2.3% increase in January. The agency says sales were down in five of 11 sub-sectors, representing 67% of total retail sales.
ON BAYSTREET
The TSX Venture Exchange slid 0.24 points to 804.15
Seven of the 12 TSX subgroups had ventured into the positive area by midday, with energy and health-care each gathering 0.5%, and consumer staples advancing 0.4%.
The five laggards were weighed most by real-estate, sinking 1%, gold, down 0.4%, and consumer discretionary issues, off 0.3%.
ON WALLSTREET
U.S. equities rose slightly on Wednesday as investors eagerly awaited President Donald Trump's outline for tax reform, while earnings season continued.
The Dow Jones Industrial Average remained positive 25.43 points to 21,021.55, with much of the upward push provided by Goldman Sachs and 3M.
The S&P 500 added 2.6 points to 2,390.94, with health care leading advancers
The NASDAQ Composite stepped back from its all-time high, losing 1.7 points to 6,023.79
Earnings season carried on, with PepsiCo, United Technologies, Procter & Gamble and Twitter all posted a better-than-expected profit. Twitter's stock popped $1.57, or 10.7%, to $16.24 U.S. as the clock swept into noon ET.
Figures seem to point to big firms surpassing expectations in the last quarter. Of the 181 S&P 500 components that had reported as of Wednesday, 77% had topped earnings expectations while 67% beat on the top line.
On a trading day without specific macroeconomic figures, attention turns to the White House, where U.S. Treasury Secretary Steven Mnuchin confirmed the administration's outline will call for a 15% corporate tax rate.
Expectations for lower corporate taxes have spurred stocks ever since Trump was elected in November. Still, the Trump White House has failed to elaborate on what these tax cuts might look like.
Trump will also be outlining his tax reform vision ahead of a potential government shutdown. Government funding will end Friday unless Congress can agree on at least a temporary funding resolution.
Prices for the benchmark 10-year Treasury note were higher, lowering yields to 2.31% from Tuesday’s 2.33%. Treasury prices and yields move in opposite directions.
Oil prices gained back 28 cents at $49.84 U.S. a barrel
Gold prices slid $2.90 at $1,264.30 U.S. an ounce.
