TSX Slides Despite Sustained Oil Rally -- Canadian Commentary

(RTTNews) - Canadian stocks failed to rally Wednesday, as Bay Street remained skittish despite rising oil prices.

The TSX Composite Index fell 30.98 points to 15,171.39, unable to sustain yesterday's gains.

Crude oil futures surged toward $49 a barrel, the highest in almost two months, as data confirmed U.S. oil stockpiles are falling fast.

Crude inventories fell by 7.2 million barrels in the week to July 21, compared with analysts' expectations for a decrease of 3 million barrels, the Energy Information Administration said today.

The loonie hit a new 2-year peak above 80 cents as the U.S. Federal Reserve failed to detail its plans to reduce a bloated balance sheet.

In corporate news, grocery store chain Loblaw (L.TO) expects higher minimum wage rules in Ontario and Alberta to hurt profits. Labor costs will jump by about $190 million in 2018. Shares fell 3.7 percent.

Home Capital Group (HCG.TO) has already repaid a $2-billion line of credit from Warren Buffett's Berkshire Hathaway (BRKb.N). Home Capital gave back early gains to finish slightly lower.

Yellow Pages Ltd. (Y.TO) says chief executive Julien Billot has left the company. The company says the board has named chief financial officer Ken Taylor as interim chief executive.

SNC-Lavalin (SNC.TO) announces a contract award on the Fine Ash Dam 6 Project in Secunda for Sasol Group Technology in South Africa.

British Columbia Premier John Horgan offered no assurance on Tuesday that his government will issue permits that Kinder Morgan Canada (KLM.TO) needs for its Trans Mountain pipeline, according to the Globe and Mail.

Canadian National Railway Co (CNR.TO) released a profit for its second quarter that rose 20 percent from last year.

The company said its bottom line climbed to C$1.01 billion, or C$1.34 per share. This was higher than C$0.87 billion, or C$1.11 per share, in last year's second quarter.