Canada's main stock index fell at the open on Monday, led by declines in rate-sensitive technology stocks as upbeat U.S. economic data last week sparked fears of further interest rate hikes.
The TSX stumbled out of the gate Monday, losing 127.76 points, to 20,630.58.
The Canadian dollar docked 0.03 cents at 74.34 cents U.S.
In company news, Scotiabank downgraded Brookfield Corp to "neutral" from "outperform". Brookfield ditched $1.87, or 3.7%, to $48.68.
Focus will be on Newmont Corp after the gold miner made a $16.9-billion offer for Australian peer Newcrest Mining. U.S.-listed shares of the company fell 5.84%. Newmont shares dropped $2.57, or 3.9%, to $64.13.
On the economic calendar, the IVEY PMI climbed last month to 60.1 from December's 49.3, and a reading of 64.9 in January.
ON BAYSTREET
The TSX Venture Exchange slipped 2.52 points to 617.57.
The 12 subgroups were all on the red side, with real-estate down 1.8%, health-care, sliding 1.2%, and financials, off 0.9%.
ON WALLSTREET
U.S. stock fell Monday as investors awaited the latest batch of corporate earnings and an important speech from Federal Reserve Chairman Jerome Powell.
The Dow Jones Industrials capsized 182.6 points to open the week at 33,743.41.
The S&P 500 dipped 35.08 points to 4,101.40.
The NASDAQ Composite blundered 128.12 points, or 1.1%, to 11,878.83.
Investors were taking some profits after the stock market’s hot start to the year. The S&P 500 is up more than 7% for 2023. The NASDAQ Composite has advanced for the last five weeks, a streak not seen since November 2021.
Tyson Foods fell 4% after a weaker-than-expected earnings report. Children’s Place, the kids’ apparel retail, 11% after it pulled back its outlook for the fourth quarter. Apple shed more than 1%, pressuring the Dow as concerns over higher rates weighed on some tech stocks.
Disney, Chipotle, Dupont and PepsiCo are among the major companies reporting earnings this week. About half way through earnings season, profits for S&P 500 companies are on pace to be 2.7% lower for the fourth quarter, according to Refinitiv.
Prices for the 10-year Treasury slid, raising yields to 3.61% from Friday’s 3.53%. Treasury prices and yields move in opposite directions.
Oil prices lost 19 cents to $73.20 U.S. a barrel.
Gold prices hiked $6.60 to $1,883.20 U.S. an ounce.
