Canadian stocks swung between gains and losses on Wednesday after a two-day slide, as the global selloff in equities eased.
The S&P/TSX composite index moved into negative country 52.87 points to greet noon at 13,429.03, after Tuesday’s decline of more than 370 points.
The Canadian dollar was down 0.25 cents to 75.19 cents U.S.
Equities erased an earlier gain of as much as 1.1% as a slump in energy producers offset an advance in the nation’s largest lenders.
Valeant Pharmaceuticals International Inc., the second-largest company by market capitalization, advanced 1.4% after agreeing to buy a surgical devices company.
Valeant rose, snapping a two-day retreat after agreeing to buy Synergetics USA Inc. in a cash deal worth $6.50 a share. Synergetics, a supplier of precision surgical devices, will enhance Valeant’s Bausch & Lomb eye-care business
A government report showed that U.S. crude inventories rose the most in four months. Suncor Energy Inc. slipped 2.9% and Canadian Natural Resources Ltd. lost 2.3%.
ON BAYSTREET
The TSX Venture Exchange stayed upward 2.82 points to at 550.79
Eight of the 14 TSX subgroups remained positive midday, with health-care stocks ahead 3.3%, consumer staples advancing 1.4%, and information technology up 1.1%
The half-dozen laggards were weighed most by 2.9%, gold, sliding 1.2%, and utilities, off 0.7%.
ON WALLSTREET
U.S. stocks jumped Wednesday, trying to recover from the worst start to a September in 13 years, as investors eyed calmer global markets and domestic data.
The Dow Jones industrial average recovered 106.50 points to 16,164.85. Intel and Apple gained about 2% to lead nearly all blue chips higher, while information technology led most S&P sectors higher.
The S&P 500 improved 7.30 points to 1,921.15, with information technology leading eight sectors higher and energy and utilities the only decliners.
The NASDAQ index jumped 31.13 points to 4,667.24
U.S. stocks closed nearly 3% lower on Tuesday for the worst first day of September trade since 2002. The Dow and S&P ended 2.5% above lows hit during last week's selloff.
Vera Bradley earnings came out before the bell. The handbag and accessories maker reported better-than-expected second-quarter revenue, helped by new products and marketing, Reuters reported. The firm also forecast third-quarter earnings from continuing operations and revenue above analysts' estimates.
In other corporate results before the bell Ambarella reported adjusted quarterly profit of 88 cents U.S. per share, beating estimates of 80 cents, while revenue was also above forecasts. However, the maker of video processing chips is seeing its shares under pressure, following a report warning of possible risks to GoPro's third quarter results. Ambarella is one of GoPro's key suppliers.
H&R Block posted a loss of 35 cents U.S. per share, five cents less than analysts had anticipated. Revenue beat estimates, and the company also announced a $3.5-billion U.S. stock buyback program.
After a recent rally, crude settled 7.7% lower on Tuesday and extended losses following a greater-than-expected inventory build in API data.
July's factory orders rose 0.4%, below consensus expectations for a 0.9% increase. The second-straight month of increases was driven by strong demand for auto sales. Durable goods orders for July were revised higher to 2.2% from 2%.
The Federal Reserve's latest Beige Book is due at 2 p.m.
Dow futures briefly held less than 100 points higher after the ADP report missed expectations slightly, showing creation of 190,000 private jobs versus expectations of 200,000.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.16% from Tuesday’s 2.18%. Treasury prices and yields move in opposite directions.
Oil prices dropped $2.08 a barrel to $43.33 U.S.
Gold prices shed $6.60 to $1,133.20 U.S. an ounce.
