The Toronto stock market gained ground Monday afternoon as the latest American manufacturing data pointed to continued recovery in the U.S. economy while Thanksgiving holiday sales disappointed.
The S&P/TSX composite index was positive 24.17 points to end Monday at 13,419.54
The Canadian dollar fell 0.18 at 93.97 cents U.S. early Monday
Overnight, HSBC reported its purchasing managers' index slipped to 50.8 from 50.9 in October. Typically, numbers above 50 indicate an expansion.
In corporate news, Talisman Energy Inc. says two representatives of activist investor Carl Icahn will join its board.
One of Icahn's representatives will sit on the board committee searching for a successor to Hal Kvisle, who plans to step down as Talisman's president and chief executive next year. Icahn revealed through regulatory documents in October that he had acquired about 6% of Talisman's stock, and has now increased his holdings to about 7%
Last month, Talisman announced it would sell 75% of its assets in northeastern B.C.'s Montney formation to Progress Energy Canada Ltd., a subsidiary of Malaysia's Petronas, for $1.5 billion. Shares rose 4.5% or 56 cents to $12.99.
Shares in the one of the world's largest gold companies, Barrick Gold, fell nearly 6.1%, or $1.07, to $16.54 following reports that founder Peter Munk plans to step aside as co-chairman. The company refused to comment Monday, except to say it will provide an update later this week.
On the economic front, RBC released its Canadian Manufacturing Purchasing Managers Index for November. The figure registered at 55.3, slightly lower than the 55.6 recorded in October. Any reading above 50 indicating improving business conditions in the manufacturing sector.
ON BAYSTREET
The TSX Venture Exchange dipped 12.40 points to 922.49
Nine of the 14 TSX subgroups were higher, with industrials surging 1.7%, information technology clicking better by 1.3%, and consumer staples up 1.2%
The five laggards were weighed most by gold, down 4.9%, materials, sliding 2.8%, and the metals and mining group, off 1.9%.
ON WALLSTREET
Stocks slid in the final hour of trading Monday as weak holiday sales raised concerns about the state of the consumer.
The Dow Jones Industrials stumbled 77.64 points to 16,008.80
The S&P 500 index slipped 4.91 points to 1,800.90. The NASDAQ shed 14.63 points to 4,045.26
There wasn't a lot of economic or corporate news Monday. But the National Retail Federation did report that shoppers spent an average of 4% less over the holiday weekend, the first decline in spending since 2009. Shares of J.C. Penney, Coach and Urban Outfitters were lower.
Given the underwhelming Black Friday sales, investors will be watching Cyber Monday shopping figures for further clues about the health of the U.S. consumer.
Amazon made headlines after CEO Jeff Bezos said the company is exploring a drone-based delivery system for some shipments. The plan is in the early stages and faces regulatory hurdles, but investors on StockTwits seemed pleased with the attention it generated.
Shares of eBay were lifted by hopes the online auction company will benefit as consumers look for bargains this holiday season.
In economic news, the Institute for Supply Management said its manufacturing index rose 0.9% in November, the sixth month in a row of growth in the sector. The report points to fourth-quarter economic growth of 3.5%, according to some experts.
The November jobs report is due Friday and that could give investors a better sense of how much longer the Federal Reserve will maintain its massive stimulus program at current levels.
Other reports this week include auto sales, the second estimate of third quarter GDP and weekly jobless claims.
Prices for 10-year U.S. Treasuries sagged, raising yields to 2.80% from Friday’s 2.74%. Treasury prices and yields move in opposite directions.
Oil prices were up $1.12 to $93.84 U.S. a barrel.
Gold prices fell $31.90 to $1,227.10 U.S. an ounce.
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