North American stock markets opened mixed and near unchanged, as conflicting economic signs and worries about the looming U.S. fiscal cliff created an unsettling backdrop for investors.
The S&P/TSX composite index remained negative by 26.85 points midday Monday to 12,212.51
The Canadian dollar was down 0.02 of a cent to 100.65 cents U.S.
Saputo shares are up 2.3% after the company announced it will acquire Morningstar Foods from Dean Foods for $1.45 billion.
Research In Motion is down 1.6% after Canaccord downgraded the BlackBerry maker to "sell" and reiterated a $10 price target.
Canadian Pacific Railway said it will take a $180-million non-cash charge as it shunts aside plans to extend its network into a coal-producing region on the western U.S. CP shares are down 0.1%.
ON BAYSTREET
The TSX Venture Exchange subtracted 8.10 points to 1,212.51
All but four of the 14 Toronto subgroups were lower midday, weighed by health-care stocks, down 1.1%, while gold slid 0.9% and industrials gave up 0.6%.
The four gainers were led by consumer staples, progressing 0.8%, metals and mining, growing 0.4%, and global base metals, eking up 0.2%.
ON WALLSTREET
U.S. stocks were mixed Monday after a disappointing report on manufacturing activity added to concerns about economic growth.
The Dow Jones Industrials were off five points Monday to 13,020.60
The S&P 500 cleared breakeven by 0.12 points to 1,416.30 and the Nasdaq Composite Index stayed ahead 4.01 points to 3,014.25
Shares of computer maker Dell jumped more than 5% after Goldman Sachs upgraded its stock from sell to buy. Shares of Advanced Micro Devices Inc., which makes chips for Dell computers, were up 7%.
Qihoo 360 shares surged 10% after a report in the Wall Street Journal said the Chinese Internet company was gaining market share from larger rival Baidu Inc.
Dean Foods announced plans to sell its Morningstar division, which makes "extended shelf-life" products, to Saputo Inc. for $1.45 billion U.S.
Investors are grappling with an uncertain political environment as President Obama and lawmakers in Congress have just four weeks to avert a self-imposed crisis that could occur if a slew of tax hikes and spending cuts kick in automatically on Jan. 1.
Obama outlined an initial proposal last week to forestall the crisis, including $1.6 trillion in new taxes. But the offer was dismissed by House Speaker John Boehner, who is open to raising additional revenue but rejects tax increases.
Economically speaking, the Institute of Supply Management’s manufacturing index contracted in November, falling to its lowest level since July 2009. Economists said the drop in manufacturing activity was driven by concerns about the onset of higher tax rates and government spending cuts, rather than disruptions due to Hurricane Sandy.
Separately, the government said construction spending rose 1.4% in October from September. And car sales rebounded even more than expected in November after being hurt a month earlier by the storm that wreaked havoc on the East Coast.
Treasury prices lost some strength, boosting yields on the 10-year note to 1.63% from Friday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil prices gained 37 cents to $89.28 U.S. a barrel.
Gold prices grew $6.90 an ounce to $1,719.60 U.S.
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