Stocks stumbled out of the gate early Monday morning, as investors looked beyond a rise in Spanish bond yields and focused on rising European stocks and better-than-expected U.S. retail sales.
The S&P/TSX Composite Index began the day and week down 3.85 points, to 12,036.54
The Canadian dollar fell back 0.18 cents, to 99.89 cents U.S.
The TSX lost ground for a sixth straight week last week, losing 0.5%, leaving the main index up about 100 points or 0.7% for the year to date on worries about a slowing global economy, falling corporate profits and rising risk from the European debt crisis
In Canada, Royal Bank of Canada rose 0.5%, and Suncor Energy Inc. rose 1.3%. Barrick Gold Corp. was down less than 0.1%.
In corporate news, energy company Nexen Inc. has received regulatory approvals clearing the way for an expansion at its oil sands operation in northern Alberta. The latest approvals are for two more extraction pads at the Long Lake operation, which has experienced numerous delays due to technical issues.
CAE Inc.’s military division won more than $950 million worth of orders in its 2012 financial year including nearly half in its latest quarter, putting the training simulator company on track to beat last year’s sales. Among the orders was $170 million of training and services contracts from Brunei, announced Monday.
In the economic docket, Statistics Canada reported this morning that foreigners added $12.5 billion to their holdings during February, concentrated in federal government bonds. Meantime, Canadian investors reduced their holdings of foreign securities by $2.2 billion, marking the first lessening of holdings in 10 months.
Elsewhere, the Canadian Real Estate Association told us that sales activity rose 2.5% from February to March, to its highest monthly level since April 2010. Hikes in Toronto, Calgary, and Edmonton boosted the numbers most.
ON BAYSTREET
The TSX Venture Exchange slid 5.43 points to 1,454.50, while the Nasdaq Canada index ducked back 5.18 points to 398
Eight of the 14 Toronto subgroups were lower. Metals and mining stumbled 2.7%, materials sank 1.1%, while information technology slipped 1%.
The half-dozen gainers were led by telecoms, up 0.6%, consumer staples, progressing 0.5%, and financials, ahead 0.2%.
ON WALLSTREET
In New York, stocks opened higher Monday, as investors focused on retail sales, corporate earnings and ongoing anxieties about Europe.
The Dow Jones Industrials grew 62.02 points to 12,911.60
The S&P 500 stumbled 3.35 points to 1,366.93, and the Nasdaq subtracted 27.54 points to 2,983.79
Stocks are coming off of their worst week of the year. Last week, the Dow tumbled 1.6%, the S&P 500 sank 2% and the Nasdaq lost 2.3%.
In corporate news, Citigroup shares rose after the bank reported first-quarter earnings that, at least by one measure, beat analyst expectations. Citigroup reported earnings of $1.11 U.S. per share excluding certain items, compared with analyst expectations of $1 per share. Including those items, Citi missed expectations, posting a profit of $0.95 U.S. per share.
So far, bank earnings are off to a solid start, after both Wells Fargo and JPMorgan Chase topped estimates when they released reports Friday. Bank of America, Goldman Sachs and Morgan Stanley will all report earnings later in the week.
Mattel shares fell after the company reported quarterly earnings before the bell that missed expectations.
Nokia shares were down after the company was downgraded by credit rating agency Moody's.
Europe remains in focus this week, with Spanish 10-year bond yields climbing above 6% on Monday -- their highest level in several months. Italian yields also rose slightly, while German yields dropped as investors fled to safety.
Investors will be watching auctions of Spanish government bills on Tuesday and bonds on Thursday. Spain has been struggling with rising borrowing costs, amid fears that it may need to be bailed out.
Economically speaking, the Commerce Department reported Monday that retail sales rose 0.8% in March, ahead of analyst expectations of 0.3%, after climbing a revised 1% in February.
A report on business inventories in February was also due out after the market opened.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.99% Treasury prices and yields move in opposite directions.
Oil for May delivery boosted 42 cents to $103.25 U.S. a barrel.
Gold futures for April delivery fell $11.20 to $1,647.90 U.S. an ounce.
