Equities in Canada’s largest centre took some bruises Wednesday, as losses for health-care and resources were added to as the misfortunes of Home Capital Group continued to grab attention.
The S&P/TSX Composite Index dropped 76.51 points to close Wednesday at 15,543.14
The Canadian dollar recovered 0.09 cents at 72.87 cents U.S.
Health-care issues wilted the worst, as Valeant Pharmaceuticals faded 67 cents, or 4.8%, to $13.44.
Materials descended, as copper prices declined 3.5% to $5,601.50 U.S. a tonne.
Teck Resources got hammered $1.63, or 5.8% to $26.64, while First Quantum Minerals declined 68 cents, or 5.4%, to $12.03.
Tech stocks also took a hit, primarily BlackBerry, off three cents to $12.70, while Constellation Software sank $5.75 to $660.10.
Home Capital Group sank 91 cents, or 11.7% to $6.84, after the troubled non-bank lender delayed its first-quarter results.
In earnings, newspaper publisher Torstar Corp reported a wider-than-expected loss and shares fell 8.4% to $1.52. Shares in the media empire plummeted 16 cents, or 9.6%, to $1.50.
Energy stocks squirted barely ahead as Encana Corporation gained 36 cents, or 2.5%, to $14.89, while Tahoe Resources screamed higher $1.62, or 15.1%, to $12.35.
ON BAYSTREET
The TSX Venture Exchange gave back 2.76 points to 793.44
All but one of 12 TSX subgroups were negative on the day, as health-care slid 1.7%, materials slumped 1.3%, and information technology fell 1.1%
The lone gainer was energy, and an unspectacular 0.02% at that.
ON WALLSTREET
Bank stocks rose broadly on Wednesday as expectations for a June rate hike from the Federal Reserve increased. The rest of the market was somewhat mixed, however.
The Dow Jones Industrial Average fought its way out of the red to nose ahead 2.95 points and close at 20.952.84, with Goldman Sachs powering gainers the most.
The S&P 500 slumped 3.04 points to 2,388.13
The tech-rich NASDAQ docked 22.82 points from Tuesday’s all-time high to 6,072.55
The Fed concluded its two-day policy meeting Wednesday afternoon, giving a positive assessment of the U.S. economy while keeping rates unchanged, as was widely expected.
In a statement, the Fed's policymaking committee did express some misgivings about the U.S. economy growing just 0.7% in the first quarter, but added they see the weakness as "transitory." A June hike was left on the table, according to experts.
Market expectations for a rate hike next month jumped to 75% from 60%, according to Wells Fargo.
Wall Street also focused on earnings, particularly those of tech giant Apple. The company reported a mixed quarter overall, with adjusted earnings per share topping analyst expectations while revenue fell just short.
The tech giant said iPhone shipments totaled 50.8 million in the previous quarter, below the expected number of 52 million. Apple's stock declined 31 cents, or 0.2%, on the day to $147.20, recovering from negative readings of 1% or more.
That said, the company reported a mixed quarter overall, with adjusted earnings per share topping analyst expectations while revenue fell just short.
This earnings season has been strong thus far, with more than 75% of companies beating profit estimates and about 70% topping sales forecasts as of Friday morning
Data last week showed the U.S. economy grew at its slowest pace in three years in the first quarter. Since then, automakers have reported a drop in vehicle dales for March, which along with the drop in iPhone sales, have added to nerves.
Economically speaking, the U.S. private sector created 177,000 jobs last month, according to a report from ADP and Moody's Analytics. Economists expected an addition of 175,000 jobs.
The ADP and Moody's Analytics report is seen as a preview to the government's monthly jobs report, which will be released Friday.
The final Markit services Purchasing Managers Index reading for April hit 53.1 while the Institute for Supply Management’s non-
manufacturing reading reached 57.5.
Prices for the benchmark 10-year Treasury note fell, raising yields to 2.32% from Tuesday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices picked up seven cents at $47.73 U.S. a barrel
Gold prices slumped $13.30 at $1,243.70 U.S. an ounce.
