Stocks in Canada’s largest centre gave back some strength to begin the year’s final quarter, with energy stocks providing support as Brent broke above $50.00 a barrel and telecom stocks weighing
The S&P/TSX Composite dropped 57.88 points to begin the day and the week at 14,667.98
The Canadian dollar was virtually unchanged at 76.18 cents U.S.
Deutsche Bank raised the rating on Pan American Silver to hold from sell. Pan American shares began the session up 22 cents, or 1%, to $23.32.
Deutsche Bank raised the target price on Silver Standard Resources to $15.50 from $14.00. Silver Standard shares decreased in price 25 cents, or 1.6%, to $15.56.
CIBC raised the target price on Parkland Fuel Corp to $33.00 from $31.50, and remains favourable on the company’s growth by acquisition strategy. Parkland gained 19 cents to $31.12.
On the economic slate, RBC says its seasonally-adjusted Canadian Manufacturing Purchasing Managers Index declined to 50.3 in September, compared to 51.1 in August and below market expectations of 51.5.
ON BAY STREET
The TSX Venture Exchange docked 1.55 points Monday to at 798.68.
All 12 TSX subgroups lost ground in the first hour, as health-care lost 0.8%, while information technology and gold each weakened 0.7%.
ON WALL STREET
U.S. stocks traded lower on Monday, the first trading day of the fourth quarter, as investors digested key economic news and kept an eye on oil prices.
The Dow Jones Industrials retreated 65.6 points to 18,242.55, with UnitedHealth contributing the most to losses.
The S&P 500 slid 8.56 points to 2,159.71, with real estate and utilities leading decliners
The NASDAQ Composite dropped 19.84 points to 5,292.16
Nissan reported its September U.S. auto sales rose 4.9%, beating expectations. Ford reported a sales fall of 8%, still better than the expected 8.5%. Toyota sales, meanwhile, missed estimates, rising 1.5%. General Motors fell 0.6%, less than expected.
Other vehicle sales for September will be released throughout the day.
In economic news, the September Markit Manufacturing PMI came in at 51.5, a three-month low. Markit said U.S. manufacturers signaled another moderate upturn in both production volumes and incoming new work during September, but the latest survey indicated a further loss of growth momentum from July's recent peak.
The Institute for Supply Management Manufacturing index for September came in at 51.5, up from 49.4 in the previous month. Construction spending fell 0.7% in August, with analysts expecting a 0.2% increase.
Crude prices rose broadly before paring gains, supported by a planned production cut by the Organization of Petroleum Exporting Countries, although analysts cautioned a stubborn supply overhang could temper a longer-lasting rally. Brent prices broke above $50.00, hitting their highest level since August, and WTI traded about 1 percent higher earlier.
The OPEC deal is expected to take effect in November.
Prices for the 10-year Treasury lost ground, raising yields to 1.62% from Friday’s 1.6%. Treasury prices and yields move in opposite directions.
Oil prices dipped 17 cents to $48.07 U.S. a barrel
Gold prices fell $2.10 at $1,315 U.S. an ounce.
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