Canadian stocks opened little changed on Tuesday, weighed down by a drop in shares of gold miners, as bullion dipped even as optimism over a Greek debt and aid agreement reached overnight provided support.
The S&P/TSX Composite Index slid 5.51 points to begin the day at 12,179.54
The Canadian dollar recovered 0.18 cents to 100.84 cents U.S.,
Among gold plays, Alacer Gold dropped 4% in price to $4.56, while heavyweight Barrick Gold fell 0.6% to $34.77.
The TSX could find some strength from Bombardier Inc. after the transport giant announced what it calls the biggest sale of business aircraft its history, a deal that could potentially be worth up to $7.8 billion if all options are exercised.
VistaJet has placed firm orders for 56 Bombardier Global jets valued at $3.1 billion and acquired options for another 86. VistaJet provides private luxury chartered jets with a fleet of Bombardier aircraft based in Europe, the Middle East, Asia and West Africa.
Bombardier stock zoomed 23 cents, or 7.4%, to $3.35
ON BAYSTREET
Nine of the 14 Toronto subgroups began the day negative. Gold stocks stumbled 1.1%, while the metals and mining and materials groups each shed 0.7%.
Industrials led the five gainers, picking up 0.6%, while telecoms perked 0.3% and financials took on 0.2%.
ON WALLSTREET
U.S. stocks opened modestly lower Tuesday, despite a strong housing report and Greece reaching a deal with euro-zone leaders.
The Dow Jones Industrials gave back 11.71 points to 12,955.70
The S&P 500 moved 1.02 points higher to 1,407.31, and the Nasdaq Composite Index slid 3.51 points to 2,973.27.
Packaged food maker ConAgra announced it has reached a deal to buy Ralcorp, the largest U.S. manufacturer of private label food, for $90 U.S. a share in cash -- a 28% premium from Monday's closing price.
Swedish telecommunications company Ericsson said it was suing South Korean electronics maker Samsung for patent infringement.
Shares of Facebook were little changed Tuesday after rising more than 8% Monday following the upgrade of the stock by several analysts. Facebook has rallied nearly 50% since touching a low of $17.55 U.S. in early September. The stock, currently around $26 U.S., is trading at its highest level since late July. Shares of Facebook .
While the housing report showed U.S. home prices making their biggest quarterly gains in more than two years, it was for the third quarter.
The fiscal cliff remains front and center for investors, as contentious negotiations continue.
Euro-zone finance ministers and the International Monetary Fund announced late Monday they had reached an agreement that moves Greece closer to receiving a massive bailout payment. The deal includes lower interest rates for Greece, a debt buyback and more time for the debt-laden country to repay its rescue loans.
Yet Europe's woes continue to weigh on the U.S. The Organization for Economic Cooperation and Development warned early Tuesday that Europe's worsening economy next year will slow U.S. growth more than previously forecast.
Economically speaking, the Case-Shiller 20-city index showed that U.S. home prices jumped 3.6% in the third quarter, up from one year ago and exceeding expectations of 3.1%. That's the biggest increase since the second quarter of 2010 and triple the increase from the prior quarter. Home prices rose 2% in August.
On the domestic front, investors will continue to keep an eye on negotiations in Washington. With Congress back in session, lawmakers are under pressure to reach a deal with the White House before the end of the year in order to avoid falling over the fiscal cliff.
New orders of durable goods were flat in October, according to a U.S. Census Bureau report released Tuesday. Excluding transportation, new orders rose 1.5% in October.
Also Tuesday morning, the U.S. Conference Board will release its report on consumer confidence. This month's figure will be particularly important, as retailers gear up for the holiday shopping season. Economists expect a slight uptick in November.
Treasury prices staggered, raising yields to 1.68% from Monday’s 1.66%. Treasury prices and yields move in opposite directions.
Oil prices shed 20 cents to $87.54 U.S. a barrel.
Gold prices slid $3.80 an ounce to $1,745.80 U.S.
