RBC Drops with Flat Profit
Equities in
Toronto
fell on Wednesday as a drop in crude oil prices weighed on energy stocks, while financials fell after one of the country's largest banks reported a lower-than-expected quarterly profit.
The S&P/TSX Composite Index lumbered lower 199.3 points, or 1.6%, to open at 12,564.14.
The Canadian dollar dipped 0.28 cents to 72.21 cents
U.S.
Royal Bank of Canada reported a quarterly profit that missed market estimates on Wednesday, hurt by weakness in its insurance and capital markets businesses.
RBC shares took a nosedive $2.98, or 4.3%, to $66.65.
Encana Corp cut its capital budget and production target for 2016, and said it would slash more jobs as the company struggles to cope with a steep fall in oil prices.
Encana shares hiked 70 cents, or 16.8%, to $4.85.
BlackBerry said it has acquired
U.K.
-based cyber security consultancy Encription, moving the company deeper into the services business as it continues to morph into a more software-focused entity amid its ongoing turnaround.
The company once known as Research In Motion faded in price 21 cents, or 2.1%, to $9.79.
Canaccord Genuity raised the target price on Altus Group to $27.00 from $24.00, with a buy rating.
Altus shares took on two cents to $18.00.
BofA Merrill Lynch raised the target on Bank of Montreal to $86.00 from $84.00, with a neutral rating.
BMO shares dipped $1.99, or 2.7%, to $71.69.
CIBC raised the target price on Birchcliff Energy to $7.00 from $6.00. Birchcliff shares docked five cents, or 1%, to $4.80.
ON BAYSTREET
The TSX Venture Exchange regained 2.76 points to 535.34
All but two of the 13 TSX subgroups were lower, as metals and mining dove 7.2%, financials were off 2.9%, and energy slid 2.1%.
The two gainers were in gold, up 3.4%, and materials, gaining 1%.
ON WALLSTREET
U.S.
stocks traded more than 1% lower Wednesday, pressured by continued declines in oil prices as hopes of curbing oversupply waned.
The Dow Jones industrial average dropped 232.06 points, or 1.4%, to 16,199.72, with Caterpillar leading decliners and United Technologies the only gainer.
The S&P 500 slumped 26.99 points, or 1.4%, to 1,894.37, with energy and financials the greatest laggards. Utilities proved the only gainer.
The NASDAQ index tumbled 68.16 points, or 1.5%, to 4,435.42
The major
U.S.
averages extended losses slightly after the Markit Flash February report on services PMI came in at 49.8, down sharply from 53.2 in January and a touch below the key 50.0 level.
New home sales for January hit 494,000, below the expected 520,000
Prices for the 10-year Treasury spiked, lowering yields to 1.66% from Tuesday's 1.74%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.22 a barrel to $30.65
U.S.
Gold prices marched higher $24.13 to $1,250.98
U.S.
an ounce.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer
