TORONTO -- The Toronto stock market was lower Wednesday, with energy stocks selling off amid fresh inventory data showing U.S. crude supplies at 80-year highs. However, investors were encouraged by strong earnings results.
The S&P/TSX composite index dropped 104.8 points to 14,729.08.
The Canadian dollar was down 0.5 of a cent to 80.12 cents US.
U.S. indexes were mixed as traders received reassurance on interest rates from the U.S. Federal Reserve, which made its scheduled announcement on rates at mid-afternoon.
The Fed said it would remain "patient" in beginning to normalize monetary policy. The central bank also had positive things to say about the American economy. It noted that economic activity is expanding at a solid pace, household spending is growing moderately and that household purchasing power has been boosted by sharply lower gasoline prices.
The Dow industrials climbed 33.01 points to 17,420.22 and the Nasdaq advanced 18.78 points to 4,7002.28, while the S&P 500 index slipped 1.15 points to 2,028.4.
Canadian National Railway's (TSX:CNR) quarterly profit surged by nearly a third to $844 million. That amounted to $1.03 per share, six cents ahead of estimates. Revenue was up nearly 17 per cent at $3.2 billion, beating estimates of $3.12 billion. CN's operating ratio improved to 60.7 per cent and it boosted its quarterly dividend 25 per cent to $1.25 a share. CN stock inched up eight cents to $85.24.
"When you look at rails and run they had, it is unrealistic to expect any significant upside unless there is an unforeseen growth catalyst," said Kash Pashootan, portfolio manager at Raymond James in Ottawa.
"Relative to the volatility we have seen in markets and relative to what we've seen in their peer group . . . I think investors should be happy with that."
And Apple's quarterly net income rose 38 per cent to $18 billion or $3.06 a share while revenue hit $74.6 billion as it sold 74.5 million iPhones, which also beat estimates. Analysts were expecting earnings of $2.60 a share on revenue of $67.39 billion. Its shares were up 7.75 per cent to US$117.59.
In Canada, CGI Group (TSX:GIB.A) says it had $236.3 million or 74 cents a share of quarterly net income, up from 60 cents per share or $189.8 million a year earlier. Cash generated from CGI's operating activities increased more than five-fold to $339.2 million and its shares ran ahead $1.87 to $48.79.
Oil prices retreated with March crude down $1.08 to US$45.15 a barrel. Prices fell after the U.S. Energy Information Administration said U.S. oil supplies rose by 8.9 million barrels last week, far higher than the 3.5-million-barrel increase that economists had expected.
Prices have plunged 55 per cent from the highs registered last summer because of a glut of supply on world markets.
The TSX energy sector fell 3.9 per cent as Cenovus Energy (TSX:CVE) lowered its 2015 capital budget to between $1.8 billion and $2 billion because of the price slump. That figure is more than 15 per cent below last year's spending levels. Its stock dropped $1.38 to $23.29.
The gold sector fell 0.8 per cent as February bullion declined $5.80 to US$1,285.90 an ounce.
March copper edged two cents higher to US$2.48 a pound after an eight-cent tumble the previous session and the base metals group was down 0.3 per cent.
