The Toronto stock market was lower Monday as traders balanced surveys that showed Chinese manufacturing shrank in April for the fourth month in a row against an improving American non-manufacturing sector.
The S&P/TSX composite index backtracked 68.12 to finish the day at 14,697.03, as the HSBC index of Chinese factory activity rose by 0.1 point to 48.1 in April, using a 100-point scale on which readings below 50 indicate contraction.
The gauge also fell short of its already weak preliminary result, raising concerns among investors that the slowdown in the world's second biggest economy is entrenched.
The Canadian dollar was stronger by 0.23 cents at 91.30 cents U.S.
The TSX base metals declined, as the Chinese data helped push July copper down two cents to $3.05 U.S. a pound. Teck Resources shares capsized 77 cents to $24.66
The energy sector declined as Imperial Oil nosed up eight cents to $53.53, while Suncor shed 19 cents to $43.03.
The gold sector drifted higher as worries about deteriorating conditions in Ukraine pushed gold higher for a second day. Goldcorp gave back three cents to $27.73, while Kinross Gold gave up three cents to $4.51.
It's a heavy earnings week in Canada where investors will take in reports from major companies Tuesday, including BCE Inc., whose shares took on a penny Monday to $48.88 , Sun Life Financial, up 15 cents to $37.63, George Weston, down 40 cents to $81.90, and WestJet Airlines, advancing 23 cents to $25.00.
Later in the week, there will be quarterly earnings reports from pipeline company Enbridge, Kinross Gold, Talisman Energy, Tim Hortons, Canadian Natural Resources, Canadian Tire and Valeant Pharmaceuticals.
ON BAYSTREET
The TSX Venture Exchange moved lower 5.01 points to 1,009.45
All but one of the 14 Toronto subgroups were lower on the day, weighed mostly by metals and mining, down 2.4%, information technology, off 1.9%, and their brethren in global base metals, sliding 1.4%.
Only telecoms, which gained 0.1%, held out against the generally negative tide.
ON WALLSTREET
The Dow was back in the green Monday after dropping 120 points early in the trading session. The S&P 500 and NASDAQ also recovered from early losses, up slightly for the day.
The Dow Jones Industrial Average rebounded 17.66 points to greet the closing bell at 16,530.55.
The S&P 500 added 3.52 points to 1,884.66, and the NASDAQ composite index moved forward 14.16 points to 4,138.06.
The early pessimism might have been drive by Target's announcement Monday that Gregg Steinhafel, the chairman and CEO of Target during the retailer's massive breach of customer credit and debit card data last year, has left the company effective immediately. Chief Financial Officer John Mulligan will serve as interim CEO. Shares of the retailer slumped Monday.
Earnings season is winding down, but a few more quarterly releases remain on the docket this week. Tyson Foods shares dove after the company reported first quarter earnings that fell short of analyst estimates.
Pfizer sank after the pharmaceutical giant reported slightly better than expected earnings, but it's clear the company is struggling in its traditional drug business. That might explain why Pfizer is so keen to buy British pharmaceutical company AstraZeneca despite that company's rejection of Pfizer's most recent offer of $106 billion U.S. on Friday.
JP Morgan shares dipped Monday after the nation's largest bank by assets said Friday that it expects a 20% drop in trading revenue in the second quarter.
Like many of its rivals, the Wall Street giant has seen a sharp slowdown in its bonds, currencies, and commodities units as low interest rates and soft demand from emerging markets has put a damper on those previously lucrative businesses.
On a more positive note, shares of King Digital, the maker of the hit online game Candy Crush, surged Monday after Wall Street analysts began rating the stock. Many give it "buy" recommendations.
Prices for 10-year U.S. Treasuries eked lower, raising yields to 2.61% from Friday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices gave back 33 cents to $99.43 U.S. a barrel.
Gold prices grew $6.50 to $1,309.40 U.S. an ounce.
Related Stories
