Equities in Canada’s largest market fell on Monday as shares of energy companies were pressured by a decline in oil prices after U.S. companies added rigs, a signal that crude output may rise further.
The S&P/TSX Composite Index dipped 68.05 points to begin Monday and the week at 15,297.99
The Canadian dollar drooped 0.28 cents to 75.35 cents U.S.
Also proving troublesome were industrial issues, as SNC-Lavalin Group plunged $10.51, or 21.7%, the most on the main index, to $37.99.
The construction and engineering firm cut its forecast for full-year 2018 profit, citing a problem with a project in its mining and metallurgy unit, as well as ongoing trading challenges in the Middle East and Saudi Arabia.
By contrast, gold had something of a field day, as Iamgold jetted higher 41 cents, or 10.1%, to $4.48, and Alamos Gold sprinted 30 cents, or 5.6%, to $5.63.
Fortis said on Monday it would sell its 51% stake in its hydroelectric project in British Columbia to state-owned Columbia Power and Columbia Basin Trust for about $1 billion.
Fortis shares nicked forward 10 cents to $46.42.
Canaccord Genuity cut the rating on Belo Sun Mining to hold from speculative buy. Belo shares wilted 3.5 cents, or 9.3%, to 34 cents.
Credit Suisse cut the rating on Canadian Utilities to neutral from outperform. CU shares dropped 52 cents, or 1.5%, to $33.56.
ON BAYSTREET
The TSX Venture Exchange acquired 4.87 points to 609.43
The 12 TSX subgroups were evenly divided between gainers and losers, as health-care proved 1.7% more robust, gold was 1.1% more solid, and real-estate inched up 0.1%.
The half-dozen laggards were weighed most by energy, plunging 1.8%, while industrials lost 1.5%, and information technology reared back 0.5%.
ON WALLSTREET
Stocks fell sharply on Monday as investors fretted over weak earnings from Caterpillar and a big cut in revenue guidance from chipmaker Nvidia.
The Dow Jones Industrials plummeted 347.76 points, or 1.4%, to lead off the week at 24,389.44, as Caterpillar lagged.
The S&P 500 dropped 27.37 points, or 1%, to 2,637.39, led lower by the tech and industrial sectors.
The NASDAQ Composite lost 90.93 points, or 1.3%, to 7,073.93
Caterpillar shares fell 9% after the industrial giant posted weaker-than-expected earnings for the fourth quarter. The company said its sales in the Asia/Pacific region declined because of lower demand in China. Caterpillar is considered a bellwether for global trade given the company’s exposure to overseas markets. The company also issued disappointing guidance.
Nvidia, meanwhile, dropped 17.5% after slashing its fourth-quarter revenue guidance to $2.2 billion from $2.7 billion. The chipmaker said "deteriorating macroeconomic conditions, particularly in China," impacted demand for its graphics processing units.
Nvidia’s decline pressured other chipmakers. Advanced Micro Devices dropped 7.8% while Micron slipped 3%
The two companies cited China as the second-largest economy in the world tries to bat off concerns that is economic growth is slowing. China is also trying to strike a deal with the U.S. to end a trade war that started last year.
These reports come as investors brace for the busiest week of the corporate reporting season. More than 100 S&P 500 companies are scheduled to report, including Apple, Amazon and Facebook. So far, the earnings season is off to a solid start. About 70% of the companies that have already reported have beaten analyst expectations
Prices for the benchmark for the 10-year U.S. Treasury gained a bit of territory, easing yields to 2.74% from Friday’s 2.75%. Treasury prices and yields move in opposite directions.
Oil prices slumped $1.81 to $51.88 U.S. a barrel.
Gold prices jumped $3.40 to $1,301.50 U.S. an ounce.
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