Toronto's main stock index declined for a fourth session Monday, after a big disappointment on U.S. job creation raised worries about the pace of the American economic recovery and sent commodity prices lower.
The S&P/TSX Composite Index had fallen 89.06 points to reach noon at 12,014.50
The Canadian dollar remained negative 0.04 cents to 100.23 cents U.S.
The negative start to the trading week followed five straight weeks of losses on the TSX, which left the Toronto market up only about 1.2% year to date.
The resource-heavy TSX had run up almost 14% from the lows of last October to the most recent highs of early March. But the rally has run out of steam amid worries about growth in China and other emerging economies.
Demand concerns pressured oil and metal prices on Monday.
The base metals sector was off as the May copper contract on the Nymex shed eight cents to $3.71 U.S. a pound. Teck Resources was down 73 cents to $34.33 and Ivanhoe Mines fell 32 cents to $13.44.
The energy sector fell with Cenovus Energy giving back 34 cents to $33.99 while Talisman Energy lost 13 cents to $12.53.
Blue chips also gave up ground as the financial sector lost ground. Manulife Financial shed 33 cents to $12.81 and Scotiabank fell 51 cents to $54.84.
The industrial sector also pointed downward with Canadian Pacific Railway off 46 cents to $74.54 and Finning International down 59 cents to $26.35. Finning is the world’s biggest dealer in Caterpillar products, which are widely used in the resource sector.
TSX losses were limited by a steady rise in the gold sector as Barrick Gold Corp. ran up 61 cents to $41.12 and Goldcorp Inc. rose 41 cents to $41.01.
ON BAYSTREET
The TSX Venture Exchange fell 23.86 points to 1,457.18, while the Nasdaq Canada index slipped 1.79 points to 398.96
All but two of the 14 Toronto subgroups remained down midday. Metals and mining dropped 1.9%, while financials shed 1.1%, and industrials fell 1%.
The two stalwarts were gold, up 1%, and utilities, up a mere 0.04%.
ON WALLSTREET
In New York, stocks sold off Monday as investors reconsidered the outlook for economic growth following a disappointing jobs report last week.
The Dow Jones Industrials tumbled 128.81 points, or 1%, to break for lunch at 12,931.30
The S&P 500 deducted 16.97 points to 1,381.11, and the Nasdaq reversed 33.10 points to 3,047.40.
The companies in the S&P 500 are expected to report combined earnings growth of less than 1% for the first quarter, according to research from S&P Capital IQ.
In company news, AOL shares surged more than 40% Monday, after the company said it agreed to sell more than 800 patents to Microsoft for about $1 billion U.S. in cash.
Shares of aluminum producer Alcoa were down 1%, with worries about the materials sector looming ahead of the latest round of corporate results. Analysts are predicting a 14.5% drop in earnings for the sector, according to FactSet.
Alcoa will report after the closing bell on Tuesday, marking the unofficial start of earnings season.
AT&T shares eased after the company said Sunday that it had yet to reach a deal with its union on a new contract after the old one expired, but that workers would stay on the job while negotiations continue.
Sherwin-Williams raised its outlook for first-quarter profits, sending the paint company's stock up 1%.
Shares of Apple were lower after analysts at BTIG downgraded the stock to neural, despite expectations for another quarter of strong profit growth.
Beauty company Avon Products announced Monday that it had named former Johnson & Johnson executive Sheri McCoy as its new CEO. The company was in the news last week after it rejected a $10-billion U.S. takeover bid from industry rival Coty Inc.
With no major economic reports on tap Monday, investors are questioning the outlook for growth in light of Friday's jobs report, according to some experts
Economically speaking, on Friday, the U.S. Labor Department said the U.S. economy added 120,000 jobs in March, following three straight monthly gains of 200,000 jobs or more, a trend that economists expected would continue.
The Chinese government reported Monday that inflation rose at an annual rate of 3.6% in March, higher than expected.
The report comes amid concerns over whether China will be able to ease back from the breakneck growth of recent years without experiencing a "hard landing."
In the evening, Federal Reserve Chairman Ben Bernanke will deliver a speech in Stone Mountain, Ga., on "fostering financial stability."
The price on the benchmark 10-year U.S. Treasury leaped, driving yields down to 2.02% from Thursday’s 2.18%. Treasury prices and yields move in opposite directions.
Oil for May delivery retreated $2.32 to $100.99 U.S. a barrel.
Gold futures for April delivery rose $16 to $1,644.90 U.S. an ounce.
