The Toronto stock market was little changed Monday with buyers unwilling to step up after further signs of global economic malaise sent stocks sharply lower last week.
The S&P/TSX index gained 25.13 points to finish the session at 12,090.68
The Canadian dollar shed 0.04 cents at 97.46 cents U.S.
Substantial losses on commodity markets dragged the resource-heavy TSX last week into negative territory for the year after data showing a weakening Chinese economy and a downgrade of global economic growth by the International Monetary Fund raised demand concerns.
The main index lost 2.2% last week and is down about 3% year to date.
The gold sector advanced, as bullion prices advanced. Bullion plunged to its lowest level in more than two years last week, falling 7% amid a growing conviction that inflation is firmly under control.
Buying gold as a hedge against inflation has supported gold prices to record highs of almost $2,000 U.S. back in 2011. Goldcorp Inc. improved by 69 cents to $29.28.
The energy sector also provided lift, as Canadian Natural Resources was up 44 cents to $29.98.
Canadian National Railway released earnings a couple of hours ahead of schedule.
The rail company posted net earnings of $555 million or $1.30 a share, down from $755 or a year earlier as it dealt with extreme cold and heavy snow in Western Canada, which hampered operations, congested the network and constrained volume growth.
Ex-items, earnings were $519 million, or $1.22 per diluted share, one cent ahead of forecasts, and its shares were down 90 cents to $97.58.
Air Canada tumbled 37 cents, or 12.3%, to $2.63 after earlier going as low as $2.46. The carrier said it estimates it had a $260-million net loss in the first three months of this year, down from $274 million in the first quarter of 2012.
The company said it issued the preliminary report ahead of the full results and analysis on May 3 to comply with disclosure rules as it explores a range of debt financing options.
The base metals sector declined, as copper prices continued to hover at 18-month lows. The metal, widely viewed as an economic barometer because of its use in so many applications, fell two cents to $3.13 U.S. a pound on top of a six per cent slide last week. First
Quantum Minerals shed 24 cents to $16.42.
The financials sector was off as Royal Bank gave back 53 cents to $60.92.
It is a heavy week for earnings news from corporate Canada.
Canadian Pacific Railway reports Wednesday.
Major TSX resource companies handing in earnings include miners Teck Resources, Lundin Mining, Sherritt Resources, Barrick Gold, gas company EnCana, and oil companies Cenovus Energy and Imperial Oil.
No major Canadian economic data was released Monday.
ON BAYSTREET
The TSX Venture Exchange gained 5.28 points to close Monday at 944.35
Nine of the 14 Toronto subgroups ended the day in positive territory, led by gold, up 1.7%, while energy stocks climbed 1.3%, and materials improved 1.2%.
The five laggards were weighed mostly by health-care, down 0.9%, consumer staples, off 0.4%, and financials, sliding 0.3%.
ON WALLSTREET
Stocks were also little changed in New York Monday, as the Dow Jones Industrial Average turned higher and tech shares continued to lift the Nasdaq.
The Dow Jones gained 19.66 points to end Monday at 14,567.20.
The S&P 500 index inched up 6.69 points to 1,561.94. The tech-heavy NASDAQ Composite moved higher by 27.50 points to 3,233.55
Mixed company news was also drawing investors' attention.
General Electric was the biggest drag on the Dow, after JPMorgan Chase downgraded the stock to neutral.
But shares of Microsoft offset the declines after ValueAct CEO Jeffrey Ubben confirmed to news sources that the hedge fund planned to take a near $2-billion U.S. stake in the company, making it Microsoft's biggest shareholder.
On the earnings front, Caterpillar, considered a bellwether for the global economy because of its size and reach, missed profit and revenue forecasts. The mining and construction equipment maker also trimmed its earnings outlook for the year, citing a slowdown in mining.
But the company also announced it plans to buyback shares for the first time since 2008, sending shares up more than 1%.
Oil services firm Halliburton handily beat earnings and revenue estimates.
The stock climbed more than 4%, making it among the top gainers in the S&P 500.
Shares of Netflix rose 5%. The company, which is hoping for a boost from its "House of Cards" video series, is on deck to report earning after the close.
Aside from earnings, shares of Power One Inc. surged more than 50% after Swiss company ABB agreed to buy the solar power company in a $1-billion U.S. deal.
Analysts expect earnings for S&P 500 companies to rise by 2% for the first quarter, according to S&P Capital IQ. But earnings season is far from over.
So far, 104 S&P 500 companies have reported, with 70 beating forecasts, 23 missing and 11 reported to be in line.
Aside from earnings, shares of Power One Inc. surged more than 50% after Swiss company ABB agreed to buy the solar power company in a $1-billion U.S. deal.
Investors were disappointed after an industry report showed that existing home sales slipped 0.6% in March from the prior month, to a 4.92-million annual rate. Analysts expected the sales rate to rise.
Prices on the 10-year U.S. Treasury were static on the day, keeping yields at Friday’s 1.70%.
Oil prices improved 83 cents to $88.81 U.S. a barrel.
Gold prices gained $29 to $1,424.60 U.S. an ounce
