Stocks confounded some of the experts early Monday and dropped like a stone, as oil stocks continued their downward journey.
The S&P/TSX composite index plummeted 143.16 points, or 1%, to kick off the week at 14,241.76
The Canadian dollar faded 0.39 cents to 83.92 cents U.S.
Canadian Natural Resources, the country's largest independent oil producer, cut its 2015 capital expenditure and production forecast as global oil prices continue to slump. Natural Resources shares dipped $1.08, or 3.3%, to $32.09.
Onex has bought U.K. safety and survival equipment maker Survitec from Warburg Pincus for 450 million pounds ($679.7 million U.S.). Orex shares eked up three cents to $65.54.
Tekmira Pharmaceuticals Corp agreed to buy Pennsylvania-based OnCore Biopharma Inc to focus on developing hepatitis B virus treatment by combining multiple therapeutic methods. Tekmira shares zoomed $9.07, or 48.2%, to $27.90.
Barclays cut the price target on ARC Resources to $28.00 from $33.00. ARC shares scaled back 73 cents, or 3.3%, to $21.41. Barclays also cut the price target on Vermilion Energy to $65 from $79. Vermilion fell $2.80, or 5.5%, to $48.51.
Moreover, Barclays raised the rating on Pengrowth Energy to overweight from equal-weight. Pengrowth descended 17 cents, or 4.8%, to $3.38.
ON BAYSTREET
The TSX Venture Exchange lost 3.18 points to 684.03
All but three of the 14 Toronto subgroups began the day lower, as energy tumbled 3.1%, metals and mining slid 2.9%, and global base metals dipped 1.8%.
The three gaining groups were gold, up 2%, materials, taking on 0.3%, and telecoms, better by 0.1%.
ON WALLSTREET
U.S. stocks erased starting gains and turned lower on Monday, as worries about the falling price of oil overrode enthusiasm that came with a bout of corporate deal making.
The Dow Jones Industrials tumbled 128.77 points to 17,608.60.
The S&P 500 subtracted 15.70 points to 2,029.11, with energy leading declines among its 10 major industry groups.
The NASDAQ index plummeted 30.34 points to 4,673.73.
Oilfield-services provider Schlumberger declined after Goldman Sachs Group downgraded its shares to neutral from buy, while also cutting its outlook for benchmark oil prices.
NPS Pharmaceuticals surged after Shire said it would pay about $5.2 billion U.S. to purchase the developer of medicines to treat rare disease.
Roche Holding said it would pay in the billions for a majority stake in genomic-test maker Foundation Medicine.
After the close, Alcoa reports fourth-quarter results, marking the unofficial start to the earnings season. The aluminum producer gained in early New York trading after Nomura Holdings advised purchasing its shares.
Lululemon Athletica rose after the maker of yoga clothes hiked its outlook for fourth-quarter revenue and profit.
JPMorgan Chase, Wells Fargo and Citigroup are among the major banks scheduled to report earnings later in the week.
Prices for 10-year U.S. Treasuries gained ground, thus weighing yields to 1.94% from Friday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil prices stumbled $1.63 per barrel to $46.73 U.S.
Gold prices added $7.10 an ounce at $1,223.20 U.S.
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