The Toronto stock market dipped a bit Monday, amid mixed U.S. earnings news, higher commodities and a major acquisition in the Russian energy sector
The S&P/TSX composite fell 13.45 points to start the day at 12,402.53
The Canadian dollar gained 0.06 cents to 100.59 cents U.S.
The TSX energy sector could be under some pressure after the federal government on Friday rejected a Malaysian state-owned energy giant's proposed takeover bid for Calgary-based natural gas producer Progress Energy Resources.
Petronas had offered $6 billion for Progress, but Industry Minister Christian Paradis said he was "not satisfied that the proposed investment is likely to be of net benefit to Canada." The thumbs down from Ottawa could impact share prices of other resource companies thought to be good candidates for a sale along with a hefty premium in the stock price. Progress shares tumbled $2.45, or 11.3%, to $19.20
The Canadian quarterly earnings season also kicks into gear this week with Canadian National Railways reporting later in the day. CN shares shed five cents to $87.63.
Tech company Celestica reports on Tuesday and gas producer EnCana and telecom Rogers Communications on Wednesday. Celestica gained seven cents to $7.22, while EnCana shares opened 67 cents lower to $23.11
Thursday sees the heaviest day with earnings coming in from gold producers Agnico Eagle Mines and Goldcorp Inc., energy companies Cenovus Energy and Nexen Inc. and Shaw Communications.
ON BAYSTREET
The TSX Venture Exchange fell 7.38 points to 1,308.24
The 14 Toronto subgroups were evenly split between gainers and losers. Metals and mining shares gained 1.1%, while global base metals and materials each moved 0.9% higher.
The seven laggards were weighed by energy, down 1%, while consumer staples dipped 0.4% and telecoms sagged 0.1%.
ON WALLSTREET
Stocks were mixed Monday, as Wall Street recovered from its worst one-day declines since June. But the gains were slim as investors brace for a big batch of corporate earnings this week.
Global bellwether Caterpillar kicked off the deluge with a disappointing outlook, even as its quarterly results came in better than expected, citing continued economic weakness and uncertainty.
The Dow Jones Industrial average inched down 4.28 points to open the session at 13,339.20
The S&P 500 index inched up 0.75 to 1,433.94, while the Nasdaq recovered 9.24 to 3,014.86
Following a weak open, shares of Caterpillar turned higher. The stock advanced 2%, making it the best performer on the Dow, which rose about 0.1%.
Yahoo, with new CEO Marissa Mayer at the helm, reports after the bell. Fellow tech heavyweights Facebook and Apple are up later in the week, as are AT&T and Boeing
Analysts at S&P Capital IQ predict third-quarter earnings for companies in the S&P 500 will grow by just 0.04% overall this quarter, the worst since the third quarter of 2009.
Weak earnings also put pressure U.S. stocks last week. Friday was the worst day on Wall Street in four months as investors reacted to sour earnings from McDonald's and General Electric
Shares of DISH Network rose after the company reached an agreement with Voom HD Holdings, which owns Cablevision and AMC Networks, on Sunday. DISH agreed to pay $700 million in cash to settle a dispute over wireless multi-channel video distribution and data service licenses.
BP said Monday it was in "advanced discussions" on a deal that would result in the sale of 50% of its Russia-based assets to Rosneft, a state-owned oil and gas company.
Hasbro shares rose even after the toymaker reported third-quarter earnings that slipped from a year ago and revenue that fell short of forecasts.
The price of the benchmark 10-year U.S. Treasury gained, raising the yield down to 1.80% from Friday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices fell 40 cents to $89.65 U.S. a barrel.
Gold prices picked up $3.60 to $1,727.60. U.S. an ounce.
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