Jan. 27, 2010 (Baystreet.ca) --
Canadian stocks opened a tad lower on Wednesday, even as the recent fall in commodity prices appears to have been arrested, with crude and gold trading flat.
In the first half-hour of trading, the S&P/TSX Composite Index gave back 23.98 points to 11,337.21.
Also, an upbeat comment by the International Monetary Fund (IMF) on the Canadian economy may help lift sentiment. The IMF has upped its growth forecast estimates on the Canadian economy to 2.6% from 2.1% for 2010, while maintaining that of 2011 at 3.6%.
In the past two sessions, Canadian stocks witnessed buying interest on every dip, with the main index closing marginally higher, despite falling in the morning sessions.
In corporate news, Barrick Gold said it will not ship ore from its Cortez mine in Niveda, until it gets environmental clearance from the U.S. Bureau of Land Management.
Fiber optic equipment supplier Enablance Technologies announced plan to sell up to 62.5 million shares for 40 cetns per share.
Commercial properties owner Whiterock Real Estate Investment Trust said it will sell three million units at $14.95 per unit.
Rail and transportation business operator Canadian National Railway reported late Tuesday fourth-quarter net income of $1.23 per share, compared to $1.21 per share in the year-ago quarter. In addition the company said it will buy back up to 15 million, or 3.2%, of the common shares outstanding and raise dividend payments by 7%.
Packaged software company Corel Corp. announced that its shareholders approved stock consolidation, as part of its plan to acquire Corel by Corel Holdings L.P.
Heavy oil development and production company Ivanhoe Energy said it has raised $125 million through a private placement of Special Warrants.
Real estate investment truest Lanesborough Real Estate Investment Trust announced that it has filed and obtained receipt for the offering of 5,000 investment units at $1,000 per unit for gross proceeds of $5 million.
Passenger travel industry solutions provider GuestLogix reported fourth quarter net profit of $200,000, compared to a loss of $2 million in the previous year.
In brokerage updates, Macquarie hiked Canadian National Railway price target to $61 from $58. RBC trimmed its price target on Yamana Gold to $14 from $15.
With no major economic news on tap today, traders will look to interest rate decision by FOMC from across the border, apart from new home sales and crude inventories data scheduled to be released later today.
The Canadian dollar staggered 0.27 cents to 94.01 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups were lower to begin the day. Metals and mining stocks were off 1.4%, followed by materials and gold, down 0.6% each.
The two stalwarts were information technology, up 0.6%, and consumer staples, inching ahead 0.1%.
The TSX Venture Exchange faded 4.81 points to 1,529.30, while the Nasdaq Canada index gained 3.74 points to 686.43.
ON WALLSTREET
In New York, equities struggled for direction Wednesday morning as investors geared up for the release of the Federal Reserve's policy statement this afternoon and the President's State of the Union address this evening.
The Dow Jones Industrials came out of the gate lower by 29.17 points to 10,165.12. The S&P 500 declined 2.85 points to 1.089.32, and the Nasdaq moved slightly ahead, 0.74 points, to 2,204.47.
Stocks ended lower Tuesday as selloff in the financial sector cut into an earlier rally sparked by Apple's record quarterly results and a stronger reading on consumer confidence. Apple is expected to introduce its new Tablet computer later today.
Investors are on edge ahead of the Fed's policy statement, which is due out at 2:15 p.m. ET.
Central bankers are widely expected to leave rates unchanged at near zero, but investors will scrutinize the statement for any hints about when the Fed may start raising rates again and unwinding its economic support programs.
Quarterly results: After the close Tuesday, Yahoo reported a quarterly profit that reversed a year-ago loss, as the online advertising market showed some signs of life. Results were better than expected. The Internet behemoth also reported weaker quarterly revenue that topped estimates. Shares gained 2.2% Wednesday morning
Treasury prices were sharply higher, lowering the yield on the 10-year note to 3.59% from Tuesday's 3.61%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil stepped back 21 cents to $74.50 U.S.
Gold prices were flat at $1,100 U.S.
