The Toronto stock market was little changed Monday following a string of solid gains ahead of another busy corporate earnings week, with Apple scheduled to report after the close.
The S&P/TSX composite index fell 27.58 to end Monday at 13,371.84. The index had added 5% so far this month.
The Canadian dollar gained 0.04 cents to 95.74 cents U.S.
The health care sector was the biggest percentage decliner. Valeant Pharmaceuticals International, Inc. fell $2.32 to $115.28 after it agreed to pay $142.5 million to settle all outstanding disputes with Anacor Pharmaceuticals of Palo Alto, Calif.
Industrials were lower with both of the big railways down after racking up solid gains last week in the wake of better than expected earnings reports. Canadian Pacific Railway moved down $2.19 to $147.86 while Canadian National Railways slipped $1.19 to $113.99.
Techs were also weak with CGI Group down another 67 cents to $34.92. A subsidiary, CGI Federal, was one of the main contractors for the U.S. government's troubled health-care insurance website and its shares have slid almost 9% since Oct. 16.
A congressional committee was told last week that the government didn't allow enough time to test the system before it went online Oct. 1.
Commodities were mixed with the energy sector down. Canadian Natural Resources declined 63 cents to $32.70.
The base metals sector also drifted lower with December copper unchanged at $3.27 U.S. a pound. Teck Resources gave back 57 cents to $29.70.
Gold stocks advanced, while Goldcorp improved by 34 cents to $28.32.
ON BAYSTREET
The TSX Venture Exchange dipped 1.27 points to 972.31
All but three of the 14 Toronto subgroups were lower on the day, weighed mostly by health-care, less hale by 1.2%, while information technology slid 1.1%, and industrials fell 0.8%.
The three gainers were gold, up 1%, while financials and materials retracted 0.3% each.
ON WALLSTREET
The S&P 500 ended at another record Monday. But it wasn't exactly a big rally.
The Dow Jones Industrials faded 1.35 points to conclude Monday at 15,568.90
The S&P 500 index added 2.47 points to 1,762.24. The NASDAQ dipped 3.23 points to 3,940.13.
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.
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.
After the closing bell, Apple will release its quarterly report. 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.
Shares of Netflix, which reported strong results last week, were down nearly 4%. Tesla shares also slid. The electric car maker's stock has more than tripled in price this year.
Facebook was under pressure ahead of the company's third-quarter report Wednesday. The stock has been on a tear since the social network surprised investors in July with strong results in mobile advertising.
Shares of J.C. Penney jumped 8% following reports that CEO Myron Ullman reiterated his view that sales trends are improving. The retailer's stock has plunged recently amid rumors about a potential bankruptcy and credit crunch.
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 78 cents to $98.63 U.S. a barrel.
Gold prices added two dollars to $1,354.50 U.S. an ounce.
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