Equity markets in Toronto touched a two-year high on Monday before erasing gains to trade little changed, as banks inched higher and some of the country's heavyweight mining and energy stocks slipped.
The S&P/TSX composite index fell 26.33 to greet noon at 13,373.09. the index had added 5% so far this month.
The Canadian dollar gained 0.05 cents to 95.75 cents U.S.
Early in Monday's session it reached as high as 13,416.16, a level last seen in July 2011.
Energy stocks, which have risen some 13% from a trough in June, weighed on the benchmark index, with Canadian Natural Resources off 1.4% at $32.87 and Suncor Energy Inc down 0.2% at $37.57.
Miners were more mixed, with Teck Resources down 1.4% at $29.85 and Barrick Gold Corp adding 0.9% to $21.26 and Goldcorp Inc up 0.8% to $28.22.
Meanwhile, banks provided much of the positive impact, with Royal Bank of Canada up 0.5% at $69.78, Bank of Nova Scotia adding 0.4% to $62.66 and Toronto-Dominion Bank rising 0.3% to $94.34.
ON BAYSTREET
The TSX Venture Exchange dipped 0.51 points to 973.09
Nine of the 14 Toronto subgroups were lower at noon ET, mostly the fault of metals and mining, energy and information technology issues, each down 0.5%.
The five gainers were led by gold, up 0.8%, utilities, up 0.2% and financials, up 0.1%
ON WALLSTREET
Stocks were little changed Monday as investors focused on solid corporate earnings and await the latest meeting of the Federal Reserve.
The Dow Jones Industrials faded 4.86 points to break for lunch Monday at 15,565.40
The S&P 500 index added 0.26 points to 1,760.03. The NASDAQ erased 7.88 points to 3,935.48.
Investors have been pleased by the latest batch of corporate earnings. About half of the companies in the S&P 500 have reported their third quarter results, and 75% of them were better than expected, according to FactSet.
Still, profit growth has been sluggish. So far, overall earnings have increased a mere 2.3%, led by companies in the consumer discretionary sector.
Shares of Merck fell after the drug maker reported sales that missed forecasts.
Burger King surged after the fast food chain reported earnings and revenue that topped forecasts. Apple and Herbalife are due to report in the afternoon.
Apple is expected to report earnings of $7.96 U.S. per share, down 8% from last year, according to a survey of analysts by Thomson Reuters. Earnings for the iPhone and iPad maker have declined for three quarters in a row.
Stocks have also found recent support on hopes of continued stimulus from the Federal Reserve.
The Fed has a policy meeting this week and is widely expected to say it will continue buying $85 billion U.S. in bonds and mortgage-backed securities a month.
Investors had expected the Fed to cut back, or taper, its bond buying this year. But the government shutdown may have caused economic damage and uncertainty that will keep the Fed from pulling back on stimulus just yet.
On the economic front Monday, the Fed said industrial production increased 0.6% in September, following a 0.4% rise in August. The National Association of Realtors said pending home sales, which measure the number of home sales in contract that have not yet closed, fell 5.6% in September.
Prices for the 10-year U.S. Treasury lost ground, raising yields to 2.51% from Friday’s 2.50%. Treasury prices and yields move in opposite directions.
Oil prices took on 51 cents to $98.36 U.S. a barrel.
Gold prices grew $5.90 to $1,358.40 U.S. an ounce.
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