Canada's main stock index lost ground on Wednesday, with the recent string of record gains capped by a retreat in financial and energy stocks, and quarterly results that missed targets.

TransCanada Corp (TRP.TO) was the index's most influential loser, slipping 1.1 per cent to $61.93. Encana Corp (ECA.TO) fell 1.7 per cent to $16.04 after reporting a third quarter profit decline on lower oil and gas production.

More broadly, energy stocks were down 0.2 per cent as U.S. crude prices fell 0.7 per cent to US$56.82 a barrel following data that showed rising U.S. crude production and a decline in monthly Chinese crude imports.

The Toronto Stock Exchange's S&P/TSX composite index fell 26.44 points, or 0.16 per cent, to finish at 16,105.35. The TSX touched a record 16,131.79 in the previous session.

"We're now in record territory - it's uncharted territory," said Elvis Picardo, portfolio manager at HollisWealth Inc, noting that most of the TSX's gains have been recent, and it is making up for its underperformance compared to most other major indexes during the first three quarters of this year. "I think sentiment is still quite bullish in keeping with the risk-on appetite around the world."

Of the index's 10 primary groups, seven lost ground, including consumer discretionary stocks, which fell 1.0 per cent. Sector constituents include auto parts makers Linamar Corp (LNR.TO), which tumbled 13.9 per cent to end at $66.24 after a third quarter miss, and larger rival Magna International Inc (MG.TO) which lost 2.2 per cent to $67.87.

Intact Financial Corp (IFC.TO) fell 3.4 per cent to $103.31 after a disappointing third quarter.

Canada's major banks also lost some ground, helping to pull the overall group, which accounts for about a third of the index's weight, down 0.2 per cent. Sun Life Financial (SLF.TO) fell 1.2 per cent to $49.47.

Given the solid global and domestic economic growth, Picardo said, investors are likely looking forward to bank earnings at the end of the month.

Tempering some losses was Fairfax Financial Holdings (FFH.TO), which added 2.5 per cent to $700.73.

Agrium Inc (AGU.TO) fell 1.7 per cent to $136.33 after a bigger-than-expected quarterly loss.

The broader materials group, home to miners and fertilizer firms, advanced 0.3 per cent.

ATS Automation Tooling Systems Inc (ATA.TO) slumped 4.1 per cent to $14.60 after third quarter results missed forecasts. Industrials as a whole fell 0.2 per cent.

Declining issues outnumbered advancing ones on the TSX by 143 to 100, for a 1.43-to-1 ratio on the downside.

The index had 15 issues hitting new 52-week highs. 

U.S. MARKETS

Wall Street closed at a record high on Wednesday as videogame makers rallied and Apple's market value climbed above US$900 billion.

Take-Two Interactive Software (TTWO.O) jumped 10.58 per cent after the videogame maker offered a stronger-than-expected revenue forecast for the holiday quarter.

That sparked a rally among its competitors, with Activision Blizzard (ATVI.O) surging 5.89 per cent and Electronic Arts (EA.O) adding 2.19 per cent.

Buoyed by optimism about the recently released iPhone X, Apple (AAPL.O) added 0.82 per cent and ended with a market capitalization of US$905 billion, its highest ever.

More broadly, investors remained nervous about the potential outcome of the Republican plan unveiled last week that would cut corporate taxes while eliminating a range of popular tax breaks. The bill is expected to face strong opposition from interest groups.

Republicans have yet to score a major legislative win since Trump took office in January, even though the party controls both chambers of Congress as well as the White House.

"It's a complicated, messy affair to get a tax bill passed," said Tim Dreiling, Regional investment Director for U.S. Bank Private Wealth Management, with US$150 billion in assets under management.

"There is going to be some give and take before we get a final tax package to be voted on."

The S&P 500 has risen about 21 per cent since the election of President Donald Trump a year ago, partly on the back of his promises to cut taxes and other business-friendly measures.

The three major indexes closed at record highs.

The Dow Jones Industrial Average edged up 0.03 per cent to end at 23,563.36, while the S&P 500 gained 0.14 per cent to 2,594.38.

The Nasdaq Composite added 0.32 per cent to 6,789.12.

Six of the 11 major S&P sectors rose, led by a 1.08-per cent increase in consumer staples.

The tech sector was boosted 0.5 per cent by a 2.17 per cent rise in Qualcomm after the smartphone chipmaker launched a server processor aimed at challenging Intel. Intel declined 0.17 per cent.

Snapchat owner Snap (SNAP.N) fell 14.62 per cent a day after reporting much-slower-than expected advertising revenue and user growth. Snap said China's Tencent bought a 12-per cent stake in the company.

Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.05-to-1 ratio favored decliners.

About 7.0 billion shares changed hands on U.S. exchanges, above the 6.5 billion daily average over the last 20 sessions.