Equity markets in Toronto fell on Monday as resources stocks weighed and investors remained skittish about Valeant Pharmaceuticals despite its attempts to address recent allegations made against it by an influential short-seller.
The S&P/TSX composite index erased 90.88 points to pause for lunch Monday at 13,862.78
The Canadian dollar eked up 0.15 cents at 76.10 cents U.S.
The most influential single weight was Valeant, down 4.8% at $147.93, after it fired back about "completely untrue" allegations it had used its ties with a specialty pharmacy to inflate revenue.
Gildan Activewear Inc declined 5.2% to $36.14 after an analyst downgrade.
The most influential movers in the energy group were Canadian Natural Resources, which declined 1.4% to $30.67, and Encana Corp, off 4.6% at $10.10.
Gold miners were also among the weights even as bullion inched up off a three-day losing streak, with Barrick Gold falling 2.2% to $9.99, and Goldcorp declining 2.3% to $20.02.
ON BAYSTREET
The TSX Venture Exchange settled 0.12 points to 551.09
All but three of the 13 TSX subgroups were lower, as gold stocks dove 2.4%, energy slid 1.7%, and materials fell 1.5%.
The three gainers were health-care, up 0.2%, while real-estate and telecoms each eked up 0.01%.
ON WALLSTREET
U.S. stocks traded mostly lower Monday, attempting to hold last week's gains, as investors readied for another week of earnings and central bank announcements.
Apple fell more than 3%, outweighing gains in Goldman Sachs to pressure the Dow Jones industrial average, which remained negative 33.07 points to 17,613.63,
The S&P 500 fell 5.13 points to 2,070.02, with energy leading eight sectors lower and consumer discretionary and health-care the only gainers.
The NASDAQ index dropped 0.91 points to 5,030.95.
The iPhone maker reports earnings after the close Tuesday. On Monday, supplier Dialog Semiconductor plunged 20% in London trade after reporting preliminary earnings and guidance that missed expectations
Shares of Alphabet, Google's holding company, gained more than 1.5%. Microsoft, Facebook and Amazon all traded higher.
In corporate news, NYSE owner Intercontinental Exchange announced it will acquire Interactive Data Corporation for about $5.2 billion U.S.
Valeant Pharmaceuticals said it has formed a committee to review allegations against the company. The firm's CEO also asked the SEC to investigate Citron Research.
Xerox reported earnings that topped estimates but revenue missed. The office solutions company's results were hurt by lower printer sales and a strong dollar, and said it would conduct a review of its business operations.
Firms expected to report after the close include AvalonBay, Broadcom, Edwards Lifesciences, Everest Re, Hartford Financial, and Cheesecake Factory.
Key earnings for the week include Exxon Mobil on Friday.
In U.S. economic news, September new home sales fell 11.5% to near a one-year low after two straight months of gains.
The Federal Open Market Committee kicks off its two-day meeting Tuesday and is scheduled to release its statement Wednesday afternoon.
Prices for 10-year U.S. Treasuries gained ground, thus lowering yields to 2.06% from Friday’s 2.09%. Treasury prices and yields move in opposite directions.
Oil prices were down 51 cents a barrel to $44.09 U.S.
Gold prices gained $1.83 to $1,166.28 U.S. an ounce.
Related Stories
