Canada's benchmark stock index dipped at the open on Tuesday as declines in the prices of commodities hurt miners and energy companies.
The S&P/TSX composite index began Tuesday lower by 6.41 points at 12,440.45
The Canadian dollar backed off 0.07 of a cent U.S. to 102.53 cents.
Canaccord Genuity cut the target price on Rona Inc. this morning to $12 from $14 and National Bank Financial cuts target price to $13 from $14; citing Lowe's Cos Inc.’s withdrawal of its proposal to acquire the home improvement retailer
National Bank Financial raised Yamana Gold Inc and Aurico Gold Inc to outperform from sector perform, citing Fed's stimulus as a factor for reduced risk of deflation and higher and longer precious metal price assumptions
National Bank Financial also raised First Quantum Minerals Ltd price target to $24 from $23, raises Capstone Mining Corp price target to $3.50 from $3.25, saying investment demand for base metal equities and base metal prices have increased significantly
ON BAYSTREET
The TSX Venture Exchange inched down 0.48 of a point to 1,316.68.
In all, 10 of the 14 Toronto subgroups were off at the outset. Health-care staggered 0.7%, while the metals and mining group dipped 0.4% and energy stocks were 0.3% less energetic.
The four gainers were led by gold, up 0.6%, materials, up 0.5%, and information technology, up 0.4%.
ON WALLSTREET
Stocks dipped in early trading, as worries about Europe and the global economy made investors wary.
The Dow Jones Industrial average sifted off 7.74 points to 13,545.40
The S&P 500 index lost 3.92 points, to 1,457.27 and the tech-heavy Nasdaq Composite Index regressed 6.27 points to 3,172.40
FedEx reported better-than-expected earnings. But the delivery company cut its outlook for the rest of the year and said it would raise shipping rates, citing pressure from "weak global economic conditions."
Manchester United reported t its first financial results as a public company Tuesday.
Apple shares remain at an all-time high, just shy of $700 U.S. -- a level crossed in Monday's after hours trading and Tuesday's premarket session. The gains come on the heels of strong early sales data for the iPhone 5.
Shares of AMD fell more than 7% after the chip maker revealed Monday that its chief financial officer was stepping down.
Uncertainty over whether Spain would request a bailout, or even qualify for one, was dampening any enthusiasm investors had over the European Central Bank's recent announcement that it would be willing to buy sovereign debt, pending certain conditions. But a report from Germany showing a jump in investor confidence offset some of the pessimism.
On the economic beat, another signal on the state of the economy was the U.S. Commerce Department's second-quarter data on the nation's current trade deficit, which fell from $133 billion to $117 billion U.S. That was followed by a Treasury Department report that showed foreign investors bought $73 billion of U.S. securities in July.
Still on tap is a monthly report on builder confidence from the National Association of Home Builders, which will be released later this morning. The index is expected to come in at 38, up from 37 last month, according to a survey of analysts.
That report may attract greater attention this time, because it follows the Federal Reserve's announcement last week of its plan for a third round of quantitative easing -- or QE3. The plan consists of buying $40 billion U.S. of mortgage-backed securities each month for an undetermined amount of time.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.79% from 1.84% late Monday. Treasury prices and yields move in opposite directions
Oil prices for September delivery erased 51 cents to $96.11 U.S. a barrel.
Gold futures for December delivery dropped $1 to $1,769 U.S. an ounce.
