Equity markets in Toronto fell on Tuesday to their lowest perches in nearly three weeks as Bank of Montreal dropped after the company's results and concerns about the U.S. Federal Reserve's bond buying program weighed on overall sentiment.
The S&P/TSX composite index shed 110.60 points to greet noon at 13,308.97
The Canadian dollar slipped 0.19 cents at 93.78 cents U.S. early Tuesday
Shares of other major banks also fell as BMO, the country's number-four bank, was the first of the big lenders to report earnings this season.
The financial sector faltered as Royal Bank of Canada fell 0.9% to $69.81, and Toronto Dominion Bank was down 0.9% at $96.02.
BMO, whose shares slipped 3.6% to $70.87, said its quarterly earnings rose 1% after stronger wealth management results offset weaker income from the brokerage and U.S. Harris Bank units.
Weighed by a weaker bullion price, gold-mining shares slipped as Goldcorp Inc lost 1.1% to $22.48, and Barrick Gold Corp declined 0.2% to $16.50.
In other news, Potash Corp of Saskatchewan Inc said it will cut its workforce by 18% as it struggles with slumping demand and weak prices for the crop nutrient. The stock advanced 0.2% to $33.77.
ON BAYSTREET
The TSX Venture Exchange dipped 5.95 points to 916.54
All but one of the 14 TSX subgroups were lower by midday. Financials were down 1.9%, industrials were off 1.5% and health-care issues slid 0.9%.
Only energy stocks held out against the tide, gaining 0.5%.
ON WALLSTREET
The Dow Jones Industrials and S&P 500 were lower for a third day Tuesday, while the tech-rich NASDAQ index was flat.
The Dow fell 104.20 points to 15,904.60
The S&P 500 index slipped 8.06 points to 1,792.54. The NASDAQ backslid 9.75 points to 4,035.51
The S&P has managed gains in December for 24 of the past 30 years, but with the index up 27% so far in 2013 investors are ready to take a break.
There's little corporate or economic news expected Tuesday. Ford, General Motors and other major automakers will release their monthly sales figures over the course of the day.
Retailers were also back in focus following the holiday shopping weekend. While disappointing Black Friday sales weighed on retailers and the broader market Monday, strong Cyber Monday sales were encouraging.
Sales jumped more than 20% on Cyber Monday, making it the biggest online shopping day in history, according to an analysis released by IBM.
Also in the retail world, teen-focused Abercrombie & Fitch was sharply higher after activist firm Engaged Capital sent a letter to the company's board saying that it needs to start searching for a successor to CEO Michael Jefferies, whose contract is due to expire February 1.
Sony said that it sold 2.1 million Playstation 4s worldwide as of Dec. 1.
Tesla shares surged after the company said that the German Federal Motor Transport Authority concluded its investigation into the three recent battery fires in Model S vehicles and found "no manufacturer-related defects." Last month, Tesla CEO Elon Musk said there was no reason the company would need to recall any vehicles due to the fires.
Prices for 10-year U.S. Treasuries regained lost ground, lowering yields to 2.76% from Monday’s 2.80%. Treasury prices and yields move in opposite directions.
Oil prices were up $1.92 to $95.74 U.S. a barrel.
Gold prices reaffirmed 20 cents to $1,222.10 U.S. an ounce.
