TSX Flat on U.S. Fed Suspense

Stelco in Focus

Canada's main stock index was treading water on Wednesday, as investors awaited comments from the U.S. Federal Reserve on when it would ease its monetary stimulus.

The TSX Composite index took a breather from its recent record surge, and cooled off 1.11 points to kick off Wednesday at 20,230.21.

The Canadian dollar inched up 0.04 cents to 82.10 cents U.S.

The U.S. Transportation Department said on Tuesday it was seeking a $25.5-million fine from Air Canada over the carrier's failure to provide timely refunds requested by thousands of customers for flights to or from the United States.

As for the "Maple Leaf Airline”, TD Securities raised its target price on the carrier's stock to $34.00 from $30.00. Air Canada shares came in for a landing, 39 cents, or 1.4%, to $27.86.

RBC raised the target price on Empire Company to $45.00 from $43.00. Empire added a penny to $42.41.

JP Morgan initiated coverage on Stelco Holdings with an overweight rating and price target of $54.00. Stelco shares dropped 13 cents to $33.58.

On the economic slate, Statistics Canada reported sales by Canadian wholesalers rose 0.4% in April, the third increase in the last four months.

The nation’s number-crunchers say activity was mixed with continued increases in the building material and supply sub-sector.

The agency’s consumer price index rose 3.6% on a year-over-year basis in May, up from a 3.4% gain in April. On a seasonally adjusted monthly basis, the CPI rose 0.4% in May.

ON BAYSTREET

The TSX Venture Exchange was 1.32 points to the minus side at 968.

Six of the 12 TSX subgroups started out negative, with energy slumping 1.1%, consumer discretionary down 1%, and consumer staples, off 0.7%.

The five gainers were led by gold, 0.9% brighter, materials, gathering 0.6%, and utilities, up 0.4%. Communication stocks were unchanged in the first hour.

ON WALLSTREET

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U.S. stocks were mostly flat on Wednesday ahead of the Federal Reserve’s update on monetary policy.

The Dow Jones Industrials lost 52.9 points to begin Wednesday at 34,246.43.

The S&P 500 fell 0.44 points to 4,246.15

The NASDAQ recovered 51.02 points to 14,123.88.

Big Tech stocks rose again to provide the broader market with some support. Apple and Microsoft gained 0.8% each, while Amazon and Netflix also traded in the green. Economic reopening plays were mixed with major airlines trading lower and cruise line operators higher. Royal Caribbean and Carnival both climbed 1%.

The Fed will conclude its two-day meeting on Wednesday. The central bank is not expected to make any policy moves, but it could signal that it’s beginning to think about easing its bond-buying policy.

The Fed will also release new forecasts on Wednesday, which could indicate a possible first rate hike penciled in for 2023. Previously, Fed officials hadn’t come to a consensus for a rate hike through 2023.

Prices for 10-Year Treasurys were a bit higher, lowering yields to 1.49% from Tuesday’s 1.5%. Treasury prices and yields move in opposite directions.

Oil prices gained 22 cents to $72.34 U.S. a barrel.

Gold prices gathered $4.50 to $1,860.90 U.S. an ounce.