CIBC, Target in Focus
Canada’s main stock index opened lower on Wednesday, as a drop in oil prices weighed on the energy sector.
The S&P/TSX Composite Index dropped 26.44 points to open the session at 16,118.35
The Canadian dollar was down 0.34 cents at 77.67 centsU.S.
Canadian Imperial Bank of Commerce on Wednesday reported second-quarter earnings that were ahead of market expectations, helped by a strong performance by all its businesses and expansion in the United States.
The bank’s shares dipped $1.22, or 1%, to $115.64.
Nemaska Lithium said on Tuesday it had secured funding of up to $402 million from investors, which it plans to use to build a mine and processing plant to produce lithium, the key ingredient for rechargeable batteries.
Nemaska shares jettisoned 19 cents, or 16.1%, to 99 cents.
Morgan Stanley raised the rating on MEG Energy to overweight from equal weight. MEG shares gained 19 cents, or 2%, to $9.50.
Canaccord Genuity initiated coverage on Osisko Metals with speculative buy rating and price target of $1.00. Osisko shares galloped six cents, or 11.1%, to 60 cents.
The TSX Venture Exchange sank 2.62 points to 785.23
Still, eight of the 12 TSX subgroups were higher in the first hour of trading, with information technology gaining 0.8%, while gold and consumer staples each took on 0.7%.
The four laggards were weighed most by health-care, down 0.7%, financials fading 0.5%, and materials, off 0.2%.
U.S. stocks fell Wednesday after retail giant Target reported earnings that missed expectations while trade talks with China remained
uncertain after President Donald Trump said the current dealmaking may be “too hard to get done.”
The Dow Jones Industrials lost 66.91 points to 24,767.50, as Goldman Sachs and 3M led the blue-chip index lower.
The S&P 500 dropped 5.18 points to 2,719.26, amid a 0.9% decline in financials stocks and a 0.7% decline in materials stocks.
The NASDAQ faltered 7.87 points to 7,370.59, declines in Apple, Amazon and Microsoft.
Shares of Minneapolis-based Target sank more than 5% on Wednesday after it reported first-quarter earnings that missed analysts’ expectations on both the top and bottom lines.
The company blamed poor spring weather for the disappointing performance as it works to remodel many of its locations.
Home improvement retailer Lowe’s also missed expectations for the first quarter, reporting a rise in sales of just 0.6% versus expectations of a 3% increase
High-end jeweler Tiffany, meanwhile, easily beat analysts’ estimates. The company’s stock rose more than 14% after reporting earning per share of $1.14 versus expectations of 83 cents. It also raised its full-year guidance in light of the solid beat.
The New York-based company suggested its comeback plan is working to retain price-conscious millennial shoppers from drifting to new competitors.
Uncertainty over the future of trade agreements between the United States and China has kept stocks on edge over the past two days after the Trump administration said it wasn’t satisfied with the current discussions.
The president downplayed expectations for a deal Wednesday, suggesting a new direction for talks between the world’s economic powerhouses.
On the data front, there were flash manufacturing and services purchasing managers’ index figures and new home sales due this morning.
Minutes from the Federal Reserve’s latest meeting will be released at 2 p.m. ET.
Prices for the benchmark for the 10-year U.S.Treasury were higher, lowering yields to 3.02% from Tuesday’s 3.06%. Treasury prices and yields move in opposite directions.
Oil prices ditched 21 cents at $71.99U.S. a barrel.
Gold prices skidded $3.30 at $1,288.70U.S. an ounce.
This article provided by NewsEdge.