Canadian stocks fell in the first trading session of May, after capping a third monthly gain, as energy producers declined with oil and Bank of Nova Scotia slipped after reporting a $275-million restructuring charge.
The S&P/TSX Composite Index plunged 85.82 points Monday to close at 13,865.63
The Canadian dollar gained 0.13 cents to 79.79 cents U.S.
The index increased 3.4% in April, matching the longest monthly winning streak since August 2014.
Suncor Energy fell $1.25, or 3.4%, to $35.58, and rival Cenovus Energy retreated 61 cents, or 3.1%, to $19.28, to lead energy producers lower
Scotiabank lost 63 cents, or 1%, to $65.17, after reporting it will take a charge of 22 cents a share in its fiscal second quarter, to cover the cost of job cuts and other productivity enhancements as it shifts toward digital banking. The bank is scheduled to report results May 31.
Manitoba Telecom Services climbed a record 15.3%, or $5.01, to $37.85, the highest since 2008, after agreeing to sell itself to BCE Inc. in a $3.1-billion cash and stock deal. Manitoba Telecom traded at a lower value than the $40 a share acquisition price. As a follow-on to the deal, BCE will also transfer one-third of Manitoba Telecom’s wireless subscribers to competitor Telus Corp.
BCE fell 20 cents to $58.64, while Telus gained six cents to $39.84.
Valeant Pharmaceuticals International sank 98 cents, or 2.3%, for a third day of losses in the last four to $40.85. Renowned investor
Warren Buffett criticized Valeant at Berkshire Hathaway’s annual meeting, calling the drug maker’s business model flawed.
Economically speaking, the RBC Canadian Manufacturing Purchasing Managers' Index registered 52.2 in April, up slightly from 51.5 in March and above the neutral 50.0 threshold for the second month running.
ON BAYSTREET
The TSX Venture Exchange fell backward 3.58 points to 671.29
Seven of the 13 TSX subgroups were higher, as telecoms raced upward 4%, utilities strengthened 1.2% and consumer staples improved 0.9%.
The half-dozen laggards were weighed most by energy, down 2.8%, metals and mining, off 1.9%, and health-care, bruised 1.8%.
ON WALLSTREET
Stocks south of the border closed higher Monday, the first trading day of the month, helped by a decline in the dollar index.
The Dow Jones Industrials thundered higher 117.32 points to 17,891.16, with Home Depot leading advancers and Boeing the greatest laggard.
The S&P 500 gained 16.14 points to 2,081.44. Consumer discretionary led nearly all S&P 500 sectors higher.
The NASDAQ Composite Index jumped 42.24 points to 4,817.59, ending a seven-day losing streak, its longest since an eight-day skid ended Jan. 11.
Shares of Apple tried for gains in afternoon trade, but fell short about nine cents to $93.65 U.S., for its first eight-day losing streak since 1998. The stock lost about 14% in April, its worst month in more than three years.
The U.S. dollar index was about 0.5% lower, with the euro near $1.152 and the yen at 106.47 yen against the greenback in late afternoon trade.
On the economic front, the final Markit U.S. manufacturing PMI fell to 50.8 in April from 51.5 in March.
ISM manufacturing for April was 50.8, down from 51.8 in March. Construction spending for March rose 0.3%.
Prices for the 10-year Treasury faded, raising yields to 1.87% from Friday’s 1.83%. Treasury prices and yields move in opposite directions
Oil prices skimmed off a dollar a barrel to $44.92 U.S.
Gold prices slid $3.12 to $1,290.41 U.S. an ounce.
