TSX Hands Over Gains

Bank Rate Holds Steady

Equities in Canada’s largest market opened sharply lower on Wednesday, dragged by energy shares on weaker oil prices, while investors digested the Bank of Canada's policy announcement.

The TSX Composite lost 86.71 points to open Wednesday at 21,086.74.

The Canadian dollar gained 0.34 cents to 81.05 cents U.S.

Teck Resources reported an eight-fold jump in third-quarter adjusted profit on Wednesday, driven by higher prices for steelmaking coal on the back of surging demand from China.

Teck handed over 26 cents to $34.69.

CIBC cut the rating on Canadian National Railway to neutral from outperform. CNR shares dipped 68 cents to $164.57.

ATB Capital Markets resumed coverage on Cenovus Energy with an outperform rating. Cenovus fell 24 cents, or 1.6%, to $14.47.

ATB Capital Markets also announced it was resuming coverage on Imperial Oil with a sector perform rating. Imperial Oil docked nine cents to $44.82.

On the economic front, the Bank of Canada today held its target for the overnight rate at the effective lower bound of 0.25%, with the Bank Rate at 0.5% and the deposit rate at 0.025%

ON BAYSTREET

The TSX Venture Exchange faded 1.68 points, to 957.08

All but two of the 12 TSX subgroups were down in the first hour, with energy waning 1.1%, consumer discretionary and consumer staples each off 0.6%.

The lone holdouts were real-estate, higher by 0.4%, and communications, ahead 0.3%.

ON WALLSTREET

Stocks in New York are stepping back from record levels.

The Dow Jones Industrials dropped 98.99 points to 35,657.89, from Tuesday’s all-time record.

The S&P 500 dipped 2.45 points to 4,572.34, from Tuesday’s record high.

The NASDAQ Composite picked up 50.44 points to 15.286.15.

Microsoft and Alphabet were among the headline reports after the bell Tuesday, with both topping revenue expectations. Microsoft shares rose 2.6%.

General Motors shares fell more than 1% even after the industrial giant topped Wall Street’s earnings and revenue estimates for the third quarter.

Boeing saw its stock rising slightly after the company reported better-than-expected free cash flow. The aircraft maker posted a wider-than-expected loss, however.

Robinhood shares were getting slammed, down 11% the day after the trading app reported revenue well below expectations primarily due to weakness in crypto trading.

So far roughly 30% of the S&P 500 has reported earnings. Of the names that have posted quarterly updates, 82% have topped earnings expectations, while 80% have exceeded revenue estimates. Strong results have been key to pushing the major averages to new highs.

Texas Instruments shares tumbled 4% after the company missed revenue estimates while Visa fell 2.5% despite beating on the top and bottom lines. Enphase Energy leaped 12.7% after reporting record revenue in face of supply chain headwinds.

Coca-Cola rose 2.6% after the company posted a beat on the top and bottom lines and raised its outlook, saying the business was getting stronger particularly in areas where the Covid recovery has been the best.

Prices for 10-year Treasurys gained ground, lowering yields to 1.58% from Tuesday’s 1.61%. Treasury prices and yields move in opposite directions.

Oil prices weakened 69 cents to $83.96 U.S. a barrel.

Gold prices slid $7.10 to $1,786.30 U.S. an ounce.