Bay Street stocks remained notably lower on Monday and backed away from a 10-month high reached last week. Gold stocks followed the metal lower to lead the decliners.
The S&P/TSX Composite Index surrendered 79.36 points, to finish Monday’s session at 10,805.97.
Gold stocks were off and materials stocks also fell as the precious metal dropped in Comex trading. Agnico-Eagle Mines gave up 3.1% to $61.53, and Goldcorp sank 2.2% to $39.44.
In other corporate news, Research in Motion dropped 4.7% to $79.66 after the stock was downgraded to Neutral from Buy at UBS. The Blackberry-maker's target price was cut to $88 U.S. from $90 U.S.
Thompson Creek Metals added 3.3% to $15.70 after the stock was upgraded to Hold from Sell at Canaccord Adams.
Ensign Energy Services was down 0.9% to $17.13 after the company reported second-quarter net income of $13.21 million or $0.09 per share, compared to $32.26 million or $0.21 per share last year.
Day4 Energy plunged 10.1% to 62 cents after the company reported second-quarter net loss of $14.1 million or $0.38 per share, compared to net loss of $2.5 million or $0.07 per share last year.
Northgate Minerals Corp. gave back 8.9% to $2.46 after the company reported second-quarter net earnings of $5.4 million U.S. or $0.02 U.S. per share, compared to US$1.85 million U.S. or $0.01 U.S. per share last year. Shares are down 5.6%.
YM BioSciences soared 53.9% to $1.00 after the company said it was granted a license by the U.S. Department of the Treasury's Office of Foreign Assets Control to further develop its lead product, nimotuzumab, for patients with solid tumor cancers in the United States.
Gran Tierra Energy slipped 2.2% to $4.10 after the company reported its net loss for the second quarter was $28.20 million U.S., or $0.12 U.S. per share, compared to net income of $8.53 million U.S., or $0.07 U.S. per share, in the year-ago quarter.
The Canadian dollar was down 0.50 cents to 91.89 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, all but two were lower, with global base metals the worst off, ending the day 2.1% weaker, followed by gold, down 1.6%, and health-care stocks, off 1.4%.
The two gainers were industrials and consumer staples, both up 0.1%.
The TSX Venture Exchange was behind 7.37 points, to 1,185.21, while the Nasdaq Canada Index subsided 29.21 points to 733.37.
ON WALLSTREET
In New York, stocks slipped Monday as investors signaled caution ahead of a two-day Federal Reserve meeting and following a big rally that pushed the Dow and S&P 500 to their highest levels in nine months.
The Dow Jones Industrials ended the day 32.12 points lower to 9,343.02. The S&P 500 index lost 3.38 points to 1,007.10. The tech-rich Nasdaq composite surrendered 8.01 points to 1,992.24.
Stocks have rallied on and off since March, with the S&P 500 having gained nearly 50% off the lows as investors welcomed positive earnings surprises and less-bad economic news.
Stocks have also benefited from the extensive stimulus efforts, with the Fed pumping trillions into the system and the government introducing programs such as "Cash for Clunkers", which has revived auto sales.
After such a run, stocks were a bit weaker Monday, but in general, the trend likely remains up for the time being.
This week, the focus is on the Federal Reserve, which concludes its two-day policy meeting Wednesday.
The central bank is expected to hold rates steady at historic lows near zero. Yet, as usual, investors will be focused on what the bank will say in its statement, particularly about the health of the economy, any risk of inflation and what its exit strategy may be after putting so much stimuli into the financial system.
The consumer will also be in focus this week, with economic reports on inflation, and profit reports from Wal-Mart Stores and other retailers.
Wall Street advanced Friday after the government's July jobs report showed unemployment fell for the first time in a year.
In company news, Merck shares gained 1.5% after Goldman Sachs upgraded it to buy, from not rated according to published reports.
McDonald's reported that sales at stores open a year or more, a retail metric known as same-store sales, rose 2.6% in July, raising hopes that it will see a strong third quarter. Shares gained almost 2%.
Freddie Mac shares surged 78% in active trading Monday, one day after the government-run home mortgage lender reported its first quarterly profit in two years. The company, along with Fannie Mae, was saved from extinction last year amid the credit market collapse after receiving billions in government aid.
But a variety of economically-sensitive shares fell, including Dow components 3M and Caterpillar. Other Dow losers included Cisco Systems, Travelers and Walt Disney.
Treasury prices gained ground, thus lowering the yield on the benchmark 10-year note to 3.76%, from Friday’s 3.85%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil stepped back 33 cents to $70.94 U.S.
Gold prices sank $13 to $947 U.S. an ounce.
