Canada's main stock index slipped on Wednesday after the country's central bank cut the interest rates in line with investors' expectations and trimmed its 2024 growth forecast.
The TSX Composite Index had climbed to within 2.34 points of breakeven by noon EDT to 22,811.41.
The Canadian dollar was unchanged at 72.53 cents U.S.
Teck Resources beat second-quarter profit estimates, helped by higher production of copper at its Quebrada Blanca mine in Chile and an increase in copper prices. Teck shares faded 54 cents to $62.55.
The industrials sector lost strength, pulled down by a fall of $6.72. or 4.1%, in Canadian National Railway to $158.64, after the company's second-quarter results missed estimates.
On the economic schedule today, Statistics Canada’s new housing price index decreased by 0.2% in June as compared with May. Prices were down in 10 of the 27 census metropolitan areas surveyed in June and unchanged in 12, while prices rose in the remaining five CMAs.
The Bank of Canada today reduced its target for the overnight rate to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. The Bank is continuing its policy of balance sheet normalization.
ON BAYSTREET
The TSX Venture Exchange regained 1.41 points to 584.85.
Seven of the 12 TSX subgroups were higher midday, led by gold, up 2.1%, while materials rumbled 1.4%, and utilities, better by 1.1%.
The five laggards were weighed most by health-care, tumbling 10.5%, while industrials slid 1.1%, and information technology backpedaled 1%.
ON WALLSTREET
Stocks fell Wednesday after underwhelming reports from two mega-cap tech companies dented investor sentiment, putting the Nasdaq Composite on track for its worst day since October.
The Dow Jones Industrials shrank 340.64 points to 40,017.45.
The S&P 500 index subtracted 99.3 points, or 1.8%, to 5,456.44.
The NASDAQ tumbled 526.95 points, or 2.9%, to 17,623.84
Shares of Google parent company Alphabet fell 5%. Although Alphabet reported a top and bottom line beat, YouTube advertising revenue fell below the consensus estimate. Meanwhile, Tesla shares declined 10% on weaker-than-expected results and a 7% year-over-year drop in auto revenue.
Other mega-cap tech stocks fell in sympathy with Alphabet and Tesla. Nvidia and Meta Platforms lost 5% each, while Microsoft slid 3%.
Those reports mark investors’ first look at how mega-cap companies fared during the second quarter. Reports from these names are of special interest to Wall Street as this small cohort is responsible for the bulk of this year’s gains.
So far, though, the earnings season overall is off to a strong start. More than 25% of S&P 500 companies have reported their second-quarter earnings, with roughly 80% of them topping expectations.
Adding to investor concerns on Wednesday morning was weaker-than-expected U.S. manufacturing data. The U.S. PMI flash manufacturing output index fell to 49.5 in July, unexpectedly slipping into contraction territory as new orders, production and inventories declined.
Economists had forecast a reading of 51.5, according to Dow Jones.
Prices for the 10-year Treasury gained ground, lowering yields to 4.23% from Tuesday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices recovered 90 cents at $77.86 U.S. a barrel.
Gold prices jumped $19.50 to $2,423.10.
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