The Canadian dollar fell 0.42 of a cent to 104.64 cents US before the Fed announcement that could have a significant impact on the direction of the U.S. dollar.
The news conference, the first of three this year, is part of a long-standing Bernanke campaign to make the central bank more transparent and publicly accessible. Bernanke is the first Federal Reserve chief to begin a series of regular news conferences.
After a solid first-quarter earnings season so far in the U.S., investors might be taking profits given the uncertainty over the effects of Bernanke's comments on markets and the broader economy, said Pat McHugh, senior portfolio manager at Manulife Asset Management.
"My guess is so much money has been made that I suspect people are just a little bit concerned about what Mr. Bernanke might be saying and maybe taking some money off might be worthwhile."
However, McHugh said it seems nervous investors are acting emotionally in advance of Bernanke's comments, as they are unlikely to be negative enough to derail optimism surrounding the economic recovery.
Uncertainty surrounding Bernanke's speech and falling oil prices are likely keeping the TSX in the red — factors that are overshadowing positive earnings from Canadian companies, McHugh said.
Canadian National Railway (TSX:CNR) shares were up 29 to $71.29 after it reported Tuesday adjusted net income was $414 million, or 90 cents a share, above analyst expectations.
Meanwhile, oil prices slipped 34 cents to US$111.87 a barrel on the New York Mercantile Exchange. The energy sector on the TSX lost 0.9 per cent with shares in Canadian Natural Resources (TSX:CNQ) down 41 cents at C$43.45.
Gold prices rose $3.60 to $1,507.10 per ounce.
Copper prices fell six cents to $4.26 a pound on reports that China may make additional moves to rein in its economy and slow resource demand. The base metals mining sector was the biggest decliner on the TSX, down 1.3 per cent, with shares in Teck Resources Ltd. (TSX:TCK.B) down C$1.63 to $51.56.
It is another busy earnings day with many resource companies reporting improved earnings Wednesday morning.
Barrick Gold Corp. (TSX:ABX) said first-quarter net earnings rose 22 per cent to $1 billion, or $1 per share, compared to $820 million, or 82 cents per share, a year earlier. Analysts had predicted an average of $1.04 earnings per share. Shares lost 12 cents to $47.63.
Nexen Inc. (TSX:NXY) posted higher first-quarter profits and revenue on the back of soaring oil prices. Net income rose to $202 million from $141 million a year earlier. Shares lost 31 cents to $23.24.
Cenovus Energy Inc. (TSX:CVE) says its first-quarter profits dropped 91 per cent to $47 million, or six cents per share, compared to $525 million, or 70 cents in the same period a year earlier. Shares lost 80 cents to $35.43.
Sherritt International Corp. (TSX:S) profits soared 116 per cent to $63.6 million or 22 cents per share in the first quarter, compared with $29.4 million or 10 cents per share in the same 2010 quarter. Shares lost 11 cents to $7.64.
Husky Energy Inc. (TSX:HSE) reported first-quarter net income of $626 million, or 70 cents per share, an increase from $368 million, or 43 cents per share a year ago. Shares were up 14 cents to $28.63.
Tembec (TSX:TMB) posted a second-quarter profit of $7 million, or seven cents per share, compared to nil in the same period of 2010. Sales declined to $452 million from $476 million. Shares fell 13 cents to $5.20.
Shoppers Drug Mart (TSX:SC) and Open Text Corp. (TSX:OTC) will also report later in the day.
Rogers Communications Inc. (TSX:RCI.B) reported late Tuesday adjusted net income was 76 cents per share, beating analysts' expectations for 72 cents per share. Rogers shares gained two per cent or 52 cents to $35.26 Wednesday.
Wall Street markets were little changed in advance of Federal Reserve chairman Ben Bernanke's comments on the health of the U.S. economy.
The Dow Jones industrial average gained 2.7 points to 12,598, while the Nasdaq index fell 1.66 points to 2,845.88 and the broader S&P 500 index fell 1.5 points to 1,345.75.
Bernanke is expected to discuss the job market, inflation and the prospects for economic growth on Wednesday. Investors will also be watching for signs that the Fed plans to begin raising interest rates. The central bank's $600 billion bond-buying program is set to end as scheduled in June.
In U.S. corporate news, numerous large players like eBay and Starbucks are releasing their latest earnings Wednesday. Before markets opened, big names such as Boeing Co. and Whirlpool Corp. reported better-than-expected earnings.
In Europe, Britain's FTSE gained 0.04 per cent, Germany's DAX rose 0.6 per cent and France's CAC 40 index was up 0.5 per cent. For the latest updates PRESS CTR + D or visit Stock Market news Today
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