The Toronto Stock Exchange has rebounded at midday Wednesday after an early sell-off that tracked Wall Street's concerns for corporate profits in the third quarter. The TSX composite index is unchanged after surrendering a 26-point gain, with energy and financials cutting early losses to join stronger gold and base metal miners. Lifting the index is Goldcorp Inc., Barrick Gold Corp. and Ivanhoe Mines Ltd., with pressure coming from Canadian Natural Resources Ltd., which turned up the heat on the Alberta royalty dispute, and Canadian National Railway Co., which had its price target reduced. Menu Foods Income Fund units surrendered 3 per cent after raising the estimated cost of its tainted-pet-food recall and cutting its work force. Excel-Tech Ltd. skyrocketed 77 per cent on a deal to be acquired by Natus Medical Inc. for $3.25 a share. On Wall Street, the Dow industrials have slumped 87 points as the profit parade weighs on investors, who still remain confident of further interest rate relief, traders say. "It's going to be a below-average quarter for sure," Alan Gayle, senior investment strategist at Trusco Capital Management, told Bloomberg News. "We may see a little bit of softness again in the fourth quarter, softer than what the market is expecting right now." The latest economic readings did little to lift investor sentiment, with inventories among U.S. wholesalers ticking up in August, while a trade group for real estate agents warned the drop in sales of existing homes this year will be steeper than had been expected.
Follow us on Twitter: