The Toronto stock market was little changed Monday amid major developments on the merger and acquisition front.
The S&P/TSX composite index faded 11.39 points to greet noon at 14,522.18
The Canadian dollar reacquired 0.07 at 90.65 cents U.S.
Talks between Barrick Gold and Newmont Mining have broken off. The news came two days before Barrick's annual meeting, where company chairman and industry legend Peter Munk was due to step down. Barrick shares lost 31 cents to $19.43.
Corporate earnings will help set the tone on markets this coming week.
In Canada, Imperial Oil, Suncor, Cenovus Energy and Canadian Natural Resources are expected to report results.
The energy sector is the best-performing group on the TSX year to date, up about 15% with the differential on Canadian heavy oil sharply narrowed and a lower Canadian dollar helping to boost sales in U.S. currency.
On Monday, Precision Drilling reported first-quarter net earnings of $102 million, or 35 cents per diluted share, up from $93 million, or 33 cents per diluted share a year ago.
Revenues increased 13% to $672 million, mainly due to higher pricing and drilling activity in Canada, the U.S. and internationally. Its earnings missed expectations by a penny, but its shares gained 22 cents to $14.06.
ON BAYSTREET
The TSX Venture Exchange fell into the red 2.58 points to 1,011.01
Eight of the 14 Toronto subgroups were down by noon hour, with gold dropping 2.1%, while metals and mining and materials each off 1.2%.
The six gainers were led by consumer staples, up 0.9%, telecoms, up 0.4%, industrials, up 0.2%.
ON WALLSTREET
Stocks soared Monday after a flurry of corporate deal making got everyone in an upbeat mood, but it didn't last long. Concerns about Bank of America's health and tech stocks quickly clipped the gains.
The Dow Jones Industrial Average remained higher by 40.10 points – though off its highs of the morning -- to 16,401.56
The S&P 500 slid 0.99 points to 1,862.41, and the NASDAQ composite index fell 24.67 to 4,050.89.
Consumer staples and telecommunications companies are the top gainers today, while energy and utilities stocks were weak.
Investors are also getting rid shares of Netflix, Amazon and LinkedIn, which were strong performers last year, and buying shares of dividend payers such as Apple and Microsoft.
The market is about to enter the time of year when stocks historically have underperformed. Analyst say many investors are shifting into more defensive stocks as they brace for a slowdown in trading activity, which typically starts in May.
Takeover talk is swirling through the markets Monday as Pfizer said it has been looking at a $100-billion U.S. bid for AstraZeneca, and General Electric is reportedly attempting to buy Alstom's power turbines business.
The British pound pushed up against the U.S. dollar, trading at its highest level since late 2008, in response to the possibility of a Pfizer takeover of AstraZenec, noted Kit Juckes at Societe Generale.
Shares in AstraZeneca surged, while Pfizer shares were edging higher.
Both General Electric and Germany's Siemens are reportedly looking to buy the power divisions of France's Alstom, though French government officials are said to be concerned about a U.S. takeover.
Trading in Alstom shares has been suspended. The company promised to make a statement by Wednesday at the latest. General Electric has made no comment.
Siemens said it has proposed to discuss strategic options with Alstom, but declined further comment.
Bank of America shares fell 4% after the Federal Reserve required the bank to resubmit its 2014 capital plan because BofA incorrectly reported data used to calculate its capital levels. BofA said it was suspending plans to hike its dividend and increase its share repurchase program.
Chinese e-commerce company Alibaba, which is preparing to go public in the United States, announced an investment in the online video website Youku. Alibaba and a private equity firm purchased 18.5% of Youku for $1.22 billion U.S.
Corporate earnings continue to roll in from some major companies. Controversial company Herbalife is one of several firms set to report quarterly results after closing bell.
On the economic front, the National Association of Realtors said pending home sales, which reflect transactions that have not yet closed, rose in March for the first time in nine months.
In other international news, the White House unveiled new sanctions against Russian officials and businesses in response to the escalating crisis in Ukraine. The sanctions target seven Russian officials and 17 entities, including banks and companies tied to Russia's energy industry.
In a major challenge to Kiev's new leaders, armed rebels aligned with Moscow have captured towns and government buildings across eastern Ukraine and are holding a team of European monitors hostage.
The Russian ruble, which has plunged versus the U.S. dollar recently, regained some ground as the sanctions appeared to be less severe than some had expected.
Prices for 10-year U.S. Treasuries were lower, boosting yields to 2.70% from Friday’s 2.69%. Treasury prices and yields move in opposite directions.
Oil prices dumped 13 cents to $100.47 U.S. a barrel.
Gold prices ditched $7.30 at $1,293.50 U.S. an ounce.
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