The Toronto stock market gradually lost its grip on the breakeven level Monday amid rising metal prices and hopes that new administrations in Italy and Greece can institute the reforms required to keep their economies afloat.
The S&P/TSX composite index moved lower by 65.54 points approaching noon to 12,211.31, after a jump of nearly 170 points on Friday.
The Canadian dollar fell one cent to 98.22 cents U.S.
The industrials sector advanced as Canadian National Railways gained 37 cents to $81.15 while Bombardier Inc. added nine cents to $4.33.
The financial sector also provided lift while TD Bank rose 34 cents to $72.74 and Scotiabank was ahead 28 cents to $51.65.
The energy sector lost ground as oil prices declined. Imperial Oil was down 15 cents to $42.25.
The base metals sector was also off while the December copper contract gained five cents to $3.51 U.S. a pound. First Quantum Minerals was off 11 cents to $18.86.
The gold sector edged lower as Barrick Gold Corp. advanced 21 cents to $53.51.
In earnings news, Paladin Energy Ltd., an Australian-based uranium producer that trades on the TSX and Australian exchanges, deepened its third-quarter loss to $123.4 million U.S. from $3.5 million U.S. a year ago. Revenues doubled to $103 million on higher realized prices. Paladin shares gained 12 cents to $1.67.
Home improvement retailer Lowe’s Cos. said its third-quarter earnings sank 44% to $225 million U.S., weighed down by charges tied to store closings and discontinued projects. Revenue climbed 2% to $11.9 billion and its shares were up 85 cents to $23.96 U.S.
In other corporate developments, Cameco is boosting its offer for junior uranium developer Hathor Exploration Ltd. to $625 million, as it battles a competing bid from global miner Rio Tinto.
The Saskatoon-based uranium producer says the higher offer for Hathor is worth $4.50 per share. Cameco shares were off four cents to $19.99 while Hathor shares ran up 29 cents to $4.76.
ON BAYSTREET
The TSX Venture Exchange stepped back 0.38 points to 1,640.93, while the Nasdaq Canada index lost 1.68 points to 410.87
Nine of the 14 Toronto subgroups were lower by noon. Global base metals capsized 1.3%, while gold stumbled 1.2% and materials suffered 1%.
The five gainers were led by real-estate, up 0.3%, while utilities and consumer discretionaries were each off 0.2%.
ON WALLSTREET
In New York, stocks tumbled Monday, as Greece and Italy swap out leaders, and investors remain cautious about how much these transitions will help resolve Europe's debt crisis.
The Dow Jones Industrials fell 96.34 points to 12,057.30.
The S&P 500 slid 14.66 points to 1,249.19, while the Nasdaq Composite Index faded 24.57 points to 2,654.18.
Financial stocks were under pressure, with JPMorgan Chase leading the Dow's decline. Shares of Bank of America, Morgan Stanley, Goldman Sachs and Citigroup all fell more than 2%.
Boeing said Monday it won the largest commercial airplane order in the company's history: an $18-billion U.S. order from Dubai-based Emirates Airline for 50 Boeing 777-300ERs. Shares of the aircraft manufacturer rose.
Warren Buffett told CNBC early Monday that his company, Berkshire Hathaway, is boosting its stake in IBM. Shares of IBM edged higher.
Shares of Lowe's rose after the home improvement giant reported a better-than-expected profit, although numbers dropped 44% from a year ago. Lowe's also improved its sales forecast for the year. Rival Home Depot's stock also gained traction, with quarterly results due Tuesday.
Shares of Caterpillar rose, after the company said it plans to build a new mining truck factory in Indonesia, and increase capacity at its large mining truck facility and track-type tractor facility in the United States.
Shares of J.C. Penney slipped after the retailer's profits met estimates, but guidance was below forecasts.
The U.S. Department of Transportation fined American Eagle, a subsidiary of American Airlines' AMR Corp., a civil penalty of $900,000 U.S. for delays that occurred earlier this year at Chicago's O'Hare International Airport. Shares of the airline giant fell.
Over the weekend, embattled Italian Prime Minister Silvio Berlusconi stepped down, after the government passed a package of austerity measures. Former European Union commissioner Mario Monti was nominated to lead Italy.
While Monti will be at the helm in Italy, Berlusconi's party is still largest political force in parliament, and it could attempt "to stall the necessary reform agenda" in order to advance its own political agenda, one observer.
Investors will be watching Italian bond yields closely Monday, after a €3 billion of five-year bonds generated decent demand.
Yields on both the five-year and 10-year bonds still remain around 6.7%. Last week, the 10-year Italian yield spiked to a record high above 7% -- a level that eventually led to bailouts for Greece, Portugal and Ireland.
Greece swore in a new prime minister, Lucas Papademos, last Friday. Papademos, a former banker and European Central Bank vice president, will now move to form a new national unity government.
The price on the 10-year Treasury moved higher, driving the yield down to 2.04% from the 2.06% figure Thursday. Bond markets were closed Friday for Veterans Day. Treasury prices and yields move in opposite directions.
Oil for October delivery subsided $1.26 to $97.73 U.S. a barrel
Gold futures for December delivery fell $7.60 to $1,780.50 U.S. an ounce.
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