Bay Street stocks remain in the red on Monday with weakness in the technology sector dragging the market lower. With the decline, Toronto's main index has moved off of a 2 1/2-week high.
Soon before the closing bell, the S&P TSX Composite index had lost 54.53 points, to 10,776.65.
Technology stocks were down, as Research in Motion was off 1.9% to $82.13 to lead the decline.
Gold stocks were down also, as Iamgold dropped 2.2% to $12.64, Seabridge was down 3.6% at $29.50 and Barrick Gold fell 1.5% to $37.02.
Solitario Exploration & Royalty Corp. announced that it has agreed to acquire all outstanding shares of exploration stage gold company Metallic Ventures Gold in an all-stock deal. Metallic Ventures Gold stocks surged 35% to 81 cents, while Solitario shares declined 4.5% to $1.90.
In other corporate news, Biovail Corp. announced an agreement to buy the U.S. and Canadian rights to develop and commercialize Santhera Pharmaceuticals Holding AG's JP-1730/fipamezole for the treatment of Dyskinesia in Parkinson's Disease. Shares were down a penny at $14.77
Crescent Point Energy was down four cents to $35.86 after the company said it has agreed to acquire Wave Energy in a deal worth $665.3 million, plus the assumption of debt. Wave shareholders will receive 0.21 of a Crescent Point share for each Wave share, or approximately $7.28 per share.
Magna International shares dropped 5.2% to $48.39 amid a Bloomberg report that General Motors may keep its ownership of Opel.
In economic news, Statistics Canada reported retail sales in current dollars rose 1.0% in June to $34.4 billion. Retail sales have risen in five of the last six months, following large drops at the end of 2008.
The Canadian dollar is up 0.33 cents to 92.76 cents U.S., well off its highs for the day.
ON BAYSTREET
All but two of the 14 TSX subgroups ended the day down. Information technology proved the heaviest, sinking 2.7%, followed by gold, off 1.6% and consumer discretionaries, down 1%.
The two groups gaining ground were global base metals, up 0.3%, and energy stocks, ahead 0.2%.
The TSX Venture Exchange was down 7.62 points, to 1,184.33, while the Nasdaq Canada Index ended the day off 11.24 points to 749.90
ON WALLSTREET
In New York, stocks struggled Monday, as investors turned cautious after pushing the Dow, S&P 500 and Nasdaq to new 2009 highs.
The Dow Jones Industrials faded toward the breakeven point, but still finished 3.32 points in the black at 9,509.28. The S&P 500 index slid 0.56 points to 1,025.57. The Nasdaq composite index stepped backward 2.92 points to 2,017.98.
All three major gauges had risen soundly through the early afternoon, with rising oil prices and continued economic optimism lifting the market. But the gains dissolved in the afternoon, with only the energy sector remaining buoyant.
Crude oil prices touched a fresh 10-month high and lifted oil services stocks, including Dow components Chevron and Exxon Mobil. But big consumer names including Kraft Foods Coca-Cola and Home Depot all declined.
Stocks rallied Friday after Fed chief Ben Bernanke said the economy is near a recovery and existing home sales posted their biggest jump in two years. That sent the Dow to its highest close since Nov. 4, the S&P 500 to its highest close since Oct. 6 and the Nasdaq to its highest close since Oct. 1.
Stocks have had a surprisingly upbeat summer, as investors have welcomed a number of better-than-expected quarterly results and economic reports.
The S&P 500 is up 52% from the March 9 lows, as of Friday's close. And the Dow is up 45% during that same time period. After a run of that magnitude in such a short period of time, many analysts predict that stocks are due for a pullback, perhaps by as much as 15%. However, the momentum remains up, and with historically high amounts of cash held in mutual funds, the advance doesn't appear to be flagging.
In company news, Advanced Micro Devices gained 8% after Citigroup upgraded the chipmaker to "buy" from "hold." The brokerage said that while AMD is struggling now, its businesses are starting to stabilize.
Fannie Mae and Freddie Mac shares both surged, reacting to Friday news that the Federal Reserve bought $5.6 billion U.S. of Fannie, Freddie and Federal Home Loan Bank debt.
Nokia is planning to expand its traditional cell phone business by introducing a mini-laptop early next month. The Nokia Booklet 3G will use Microsoft's Windows software.
Dow component Procter & Gamble said its selling its pharmaceuticals business to drugmaker Warner Chilcott for $3.1 billion U.S. P&G shares were little changed, while Warner Chilcott shares surged 32%.
Although Monday was a light news day, a number of economic reports are due later in the week. Among the standouts, a consumer confidence report is due Tuesday. Housing reports are due Tuesday and Wednesday. On Thursday, the government's revised read on gross domestic product growth is due. Friday brings reports on personal income and spending.
Treasury prices rallied at the start of a week that brings over $100 billion U.S. in government debt auctions. The rise in prices lowered the yield on the benchmark 10-year note to 3.48% from 3.56% Friday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for October delivery rose 48 cents U.S. to settle at $74.37 U.S. a barrel on the New York Mercantile Exchange, a 10-month high.
Gold prices dropped $11 at $944 U.S. an ounce.
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