Equities in Canada’s largest centre were little changed at open on Wednesday as declines in the energy sector due to lower oil prices offset gains in industrial and technology companies.
The TSX Composite Index began the day in the red 12.34 points to lead off Wednesday at 16,379.18
The Canadian dollar dropped 0.04 cents at 76.34 cents U.S.
Canadian National Railway cut its adjusted profit forecast for the year and said it expects the first half of 2020 to be “challenging” as freight demand in North America takes a hit from a weakening economy.
CN shares deducted 43 cents to $116.95.
CIBC cut the target price on Capital Power to $32.00 from $33.00. Shares in Capital Power eased up three cents to $30.85.
CIBC also cut the target price on Enbridge to $56.00 from $57.00. Enbridge collected 26 cents to $47.76.
CIBC then raises target price on Fortis to $57.00 from $56.00. Fortis shares gathered 33 cents to $55.01.
Economically speaking, Statistics Canada reported that wholesale sales declined 1.2% to $64.3 billion in August, largely offsetting the 1.4% gain in July. Declines were recorded in five of seven sub-sectors, representing 85% of wholesale sales.
ON BAYSTREET
The TSX Venture Exchange regained 1.34 points to 541.81
All but three of the 12 Toronto subgroups were in losing territory in Wednesday’s first hour, with communications subsiding 2.4%, while energy and consumer discretionaries were each off 0.6%.
The three gainers were gold, up 2.2%, materials, up 1.3%, information technology progressing 1%.
ON WALLSTREET
Stocks were little changed on Wednesday as investors digested earnings reports from Caterpillar and Boeing.
The Dow Jones Industrial Average tallied 33.91 points to begin Wednesday at 26,822.01
The S&P 500 subtracted 0.55 points to 2,995.44.
The NASDAQ Composite dropped 12.19 points to 8,092.11
Caterpillar said it earned $2.66 per share in the third quarter, compared to the consensus estimate of $2.88 per share. Revenue came in at $12.758 billion, while Wall Street expected revenue of $13.572 billion. The heavy machinery manufacturer lowered its full-year earnings per share forecast to a range of $10.59 and $11.09, lower than the expected $11.70.
Meanwhile, Boeing shares climbed 2.2% after the airplane maker said it will stick to its timeline for the return of the 737 Max. That was enough to offset earnings that badly missed analyst expectations. The company reported a profit of $1.45 per share. Analysts expected a profit of $2.09.
Weak results from Texas Instruments weighed kept stocks in check, however. Texas instruments — which is often seen as a proxy for the microchip industry — plunged 9% after posting fourth-quarter guidance well below market estimates.
Texas Instruments’ losses dragged down the broader chipmaker space. The VanEck Vectors Semiconductor ETF (SMH) slid 1.8%. ON Semiconductor dropped 2.5% while Qualcomm lost 1.5%.
Ford, Microsoft, and Tesla are among those scheduled to report their latest quarterly figures after market close.
Despite the weak results, the third-quarter earnings season has largely topped analyst expectations. Of the 118 S&P 500 companies that have reported, 81% have posted better-than-expected results
In Europe, U.K. lawmakers voted in favor of Prime Minister Boris Johnson’s Brexit plan, but rejected his attempt to fast-track legislation to take the country out of the EU by the end of the month. The prime minister said the next step would be to wait for the EU to respond to a request to delay the current Brexit deadline of October 31.
Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to 1.74% from Tuesday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices inched downward seven cents to $54.41 U.S. a barrel.
Gold prices regained $10.50 to $1,498.00 U.S. an ounce.
