TSX Retreats with Resource Stocks

First Majestic in Focus


Equities in Canada’s largest market fell shortly after the opening bell on Monday, weighed by a decline in energy and other resource shares as the price of oil tumbled.

The S&P/TSX Composite Index dropped 68.03 points to open Monday at 16,171.19, placing the index into the red for the year so far.

The Canadian dollar weakened 0.17 cents at 81.03 cents U.S.

Cannabis producer Aphria said on Monday it would buy rival Nuuvera Inc for $826 million to expand into Europe, Africa and the Middle East.

Aphria shares gave back 20 cents, or 1%, to $19.96, while Nuuvera climbed $1.07, or 15.3%, to $8.07.

National Bank of Canada cut the rating on First Majestic Silver to sector perform from outperform. First Majestic dipped 47 cents, or 2.5%, to $18.51.

Desjardins cut the price target on Rogers Communications to $70.00 from $71.00. Rogers lost 77 cents, or 1.3%, to $60.03.

Canaccord Genuity cut the price target on TSO3 Inc. to $2.75 from $4.25. TSO3 shares dropped nine cents, or 5%, to $1.70.

Officials from the United States, Canada and Mexico will wrap up the sixth of seven planned rounds of talks on the North American Free Trade Agreement in Montreal on Monday, with little sign of agreement on the toughest U.S. proposals to overhaul the $1.2-trillion pact.

ON BAYSTREET

The TSX Venture Exchange gained 1.87 points to 892.67

All 12 TSX subgroups were lower in the first hour of trading, as health-care dawdled 1.8%, utilities plummeted 1.1%, and telecoms were off 0.8%.

ON WALLSTREET

U.S. stocks opened lower on Monday as a jump in sovereign interest rates gave investors pause.

The Dow Jones industrial average dropped from Friday’s all-time highby 72.38 points to 26,544.33

The S&P 500 slumped 10.17 points to 2,862.70, with energy and telecommunications as the worst-performing sectors.

The NASDAQ fell 24.32 points to 7,481.45

Equities were also boosted last week by stronger-than-expected quarterly results from major companies. Thus far, the corporate earnings season has been strong. Of the S&P 500 companies that have reported as of Monday morning, 78% have reported surpassed bottom-line expectations, while 77% have beaten revenue estimates

Boeing, McDonald's, Apple, Chevron, and Facebook are among the companies scheduled to report later this week.

Elsewhere in corporate news, K-Cup maker Keurig announced it will buy Dr Pepper Snapple. Keurig said Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13 percent of the new company. Dr Pepper Snapple jumped 29% on Monday.

The Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 0.2% in December. The so-called core PCE increased 1.5% in the 12 months through last month.

Prices for the benchmark 10-year Treasury note plummeted, raising yields to 2.71% from Friday’s 2.66%. Treasury prices and yields move in opposite directions.

Oil prices forfeited 52 cents a barrel to $65.62 U.S.

Gold prices dipped $9.90 to $1,342.20 U.S. an ounce.