The Toronto stock market was lower Monday afternoon as weak U.S. economic data and worries about going over the "fiscal cliff" overshadowed news that China's manufacturing sector is finally back in expansion mode.
The S&P/TSX composite index ended Monday down 69.62 points to 12,169.74
The Canadian dollar was down 0.16 of a cent to 100.50 cents U.S.
The gold sector was down as Goldcorp Inc. faded $1.32 to $37.39 while Barrick Gold Corp. declined 88 cents to $33.61.
The industrials sector was off as Canadian Pacific Railway Ltd. set aside plans to build a 420-kilometre extension to serve coal mines in the Powder River Basin, which underlies parts of Montana and Wyoming.
CP will take a $180-million non-cash charge on its books as a result of a decision to defer the plan indefinitely because of a deterioration in the market for thermal coal, which is primarily burned to produce power. Its shares were down $1.50 to $91.20.
Elsewhere in the sector, Canadian National Railways slumped 73 cents to $88.61.
The financials group shed some strength as Scotiabank gave back 51 cents to $55.49 while Manulife Financial gave back seven cents to $12.71.
The base metals sector was off while copper prices found limited lift from the Chinese data with the March contract ahead a penny at $3.66 U.S. a pound. China is the world's biggest consumer of the metal, which is viewed as a proxy for the global economy as it is used in so many applications. Thompson Creek Metals shed two cents to $2.92 while Taseko Mines climbed three cents to $2.81.
Techs were weak with Research in Motion Ltd. down a penny to $11.58 as its stock was downgraded to sell from hold at Canaccord.
The firm cited RIM’s recent share strength and doubts that the new BB10 lineup, which is being launched at the end of January, can turn around its long-term business trends.
The energy sector was flat while Canadian Natural Resources slipped 41 cents to $28.18.
Husky Energy Inc. added 14 cents to $28.02 as it said it has set a 2013 capital budget of $4.8 billion, a modest increase from the $4.7 billion it expects to spend this year. The energy company also aims to substantially increase production in the coming years.
The consumer staples sector advanced as dairy and grocery products company Saputo made a major acquisition. The Montreal-based company is paying $1.45 billion to buy Morningstar Foods, a 2,000-employee company that makes dairy and non-dairy products for the U.S. market.
Saputo has said it plans to expand in the United States but has downplayed speculation it might acquire Hostess, the bankrupt company that makes Twinkies snack cakes. Saputo shares gained $1.46, or 3.2%, to $47.50.
ON BAYSTREET
The TSX Venture Exchange subtracted 12.90 points to 1,169.74
All but two of the 14 Toronto subgroups were lower, weighed by gold, which slid 2.3%, materials, which gave back 1.7%, and industrials, which gave up 1%.
The two gainers were consumer staples, up 0.9%, and telecoms, inching up 0.1%.
ON WALLSTREET
U.S. stocks drifted lower Monday after a disappointing report on manufacturing activity added to concerns about economic growth.
The Dow Jones Industrials was off 59.98 points Monday to 12,965.60
The S&P 500 slumped 6.71 points to 1,409.47 and the Nasdaq Composite Index dropped 8.04 points to 3,002.20
Shares of computer maker Dell jumped nearly 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 8%.
Qihoo 360 shares surged 8% 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.
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 nine cents to $89.00 U.S. a barrel.
Gold prices grew $6.10 an ounce to $1,718.80 U.S.
Related Stories
