Stocks Bruised in First Hour

Canada's main stock index was dragged lower by declines in commodity-linked stocks at the open on Wednesday, while cloud services firm Converge Technology Solutions slumped on price target cuts by multiple brokerages.

The TSX fell 83.74 points to open Wednesday at 20,621.05.

The Canadian dollar backpedaled 0.49 cents to 74.46 cents U.S.

Converge, for its part, tumbled 81 cents, or 14.8%, to $4.66.

In earnings, Barrick Gold Corp beat analysts' estimates for quarterly profit and also announced a new share repurchase of up to $1 billion. Barrick, one of the giants of the gold industry, dropped 72 cents, or 3%, to $23.06.

Suncor Energy reported a better-than-expected fourth-quarter profit on Tuesday, helped by higher crude prices. Suncor shares grew $1.08, or 2.2%, to $47.46.

First Quantum Minerals also topped profit estimates, while a senior minister said talks between Panama's government and the metal miner have yielded "advances" in a dispute related to the firm's copper mine. First Quantum shares surrendered 23 cents to $26.98.

In other news, eye-care company Bausch + Lomb Corp named Brent Saunders, the former chief executive of Allergan, as its CEO and chairman. Bausch shares popped $1.11, or 11%, to $11.17.

Brookfield Asset Management is seeking to buy the 50% stake in Spain's renewable power company X-elio it does not already own, Spanish newspaper Expansion reported. Brookfield shares withered 11 cents to $47.25.

Today’s macroeconomic calendar is a crowded one. Statistics Canada reported manufacturing sales fell 1.5% in December, mainly on lower sales of petroleum and coal product, wood product and food industries.

Wholesale sales fell 0.8% to $82.2 billion in December. Declines in the machinery, equipment and supplies subsector and the miscellaneous goods subsector led the losses.

CMHC informed us that the standalone monthly seasonally adjusted annual rate of total housing starts for all areas in Canada declined 13% in January (215,365 units) compared to December (248,296 units).

According to the Canadian Real Estate Association, national home sales declined 3% month-over-month in January. Actual (not seasonally adjusted) monthly activity came in 37.1% below January 2022.

ON BAYSTREET

The TSX Venture Exchange sank 3.35 points to 616.83.

Seven of the 12 subgroups were lower, with gold scaling back 2.1%, materials, off 1.8%, and energy drooping 0.7%.

The four gainers were led by health-care, up 2.7%, while information technology and consumer discretionary each inched up 0.1%.

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Real-estate stocks were unchanged.

ON WALLSTREET

Stocks slipped Wednesday as investors mulled the latest retail sales report, which came in higher than expected, a day after the release of January’s hotter-than-anticipated consumer price index.

The Dow Jones Industrials fell 128.34 points, to begin Wednesday at 33,960.23.

The S&P 500 faded 14.85 points to 4,121.28.

The NASDAQ Composite retreated 18.45 points to 11,941.69.

Goldman Sachs dropped plans to develop a Goldman-branded credit card for retail customers, another casualty of the firm’s strategic pivot.

CEO David Solomon told analysts in late 2021 that the bank was developing its own card, which would’ve made use of the platform Goldman created for its Apple Card partnership.

But when it scaled back plans to become the primary bank for the masses, the rationale for a Goldman card evaporated, said one of the people, who declined to be identified speaking about a former employer.

January retail sales rose 3%, while economists polled by Dow Jones anticipated a 1.9% increase. The number signals that the U.S. economy is holding up despite increased rate hikes by the Federal Reserve to tame inflation.

Prices for the 10-year Treasury fell, raising yields to 3.78% from Tuesday’s 3.75%. Treasury prices and yields move in opposite directions.

Oil prices slumbered 58 cents to $78.48 U.S. a barrel.

Gold prices stepped back $21.00 to $1,844.40 U.S. an ounce.