Markets in Toronto stubbed their toes Monday morning ahead of a spate of earnings reports by several well-known Canadian companies
The S&P/TSX composite index fell 29.64 points to begin the week at 14,363.46.
The Canadian dollar retreated 0.06 cents at 91.01 cents U.S.
Investors will be watching major overseas developments Monday, including the proposed merger of two European cement and construction materials producers with global operations including in Canada.
The new company, to be called LafargeHolcim, would have a combined $44 billion U.S. in annual revenues if the proposed "merger of equals" is completed. Paris-based Lafarge is Canada's largest producer of cement and concrete building materials while Holcim, based in Switzerland, has a smaller presence in this country but extensive holdings in emerging economies.
Potash Corporation of Saskatchewan Inc. says it will have a new president and CEO starting in July. Jochen Tilk will take over from current CEO Bill Doyle, who headed efforts to thwart an attempted takeover of Canada's largest fertilizer producer by global mining giant BHP Billiton.
Tilk has a 30-year career in mining, most as chief executive of Toronto-based Inmet Mining, which was acquired a year ago by First Quantum Minerals Ltd. Potash shares demurred 17 cents to $37.65.
Discount retailer Dollarama Inc. and Cogeco Cable Inc. issue their latest quarterly reports on Wednesday and Shaw Communications Inc. issues its results on Thursday. Dollarama shares dipped 19 cents Monday morning to $87.18, while Cogeco shares took on 27 cents to $59.08.
ON BAYSTREET
The TSX Venture Exchange dipped 3.87 points to begin Monday at 1,003.29
All but three of the 14 Toronto subgroups were lower soon after the opening bell, with health-care stocks subsiding 0.8%, while industrials and energy stocks each gave up 0.6%.
The three gainers were led by telecoms and global base metals, each taking on 0.1%, while gold issues inched up 0.02%.
ON WALLSTREET
Investors may be in for a gloomy Monday, following a 2.6% selloff Friday in the NASDAQ, and 1% slides in the S&P and Dow. The carnage was ironic, especially after the Dow and the S&P both touched intraday record highs Friday morning.
The Dow Jones Industrial Average slipped 40.06 points to 16,372.65. The S&P 500 let go of 3.77 points to 1,861.32. The NASDAQ skidded 7.19 points to 4,120.54
The momentum stocks, especially in the tech sector are being watched closely again today after many were crushed on Friday. Tesla, Netflix and Amazon.com are all lower again this morning.
The pulse of the market will also be impacted this week as earnings season commences. Alcoa kicks it off tomorrow, and some of the big banks will report their first-quarter earnings later in the week. Financial stocks are one sector expected to turn in a weaker performance.
Overall, earnings for the companies in the S&P 500 are expected to be down 1.2% in the first quarter, according to estimates from FactSet.
Yet for all the doom and gloom, stock experts say the bull market still has room to run. Most expect the S&P 500 to gain 6.5% this year.
As for individual names today: shares of Mannkind are sharply lower. The Food and Drug Administration is extending its review of Mannkind's Afrezza inhaled insulin drug by at least three months. The stock shot up last week after a favorable review from a panel that advises the FDA.
Despite talk of Yahoo joining some of its rivals by getting into the TV business and producing original content, the stock opened down today, although that is in line with most other tech stocks.
In what is being blamed as a spillover effect from Michael Lewis' new book bashing high-frequency trading, E*Trade, Charles Schwab and TD Ameritrade continue to slide on fears additional regulations could impact their business.
Roche Holding shares are also slipping. That's after the Swiss drug company said it would acquire Massachusetts-based IQuum for $450 million U.S. IQuum specializes in molecular diagnostics.
Cement stocks provided one bright spot, with Lafarge and Holcim both managing solid gains after they agreed to a merger that would create the world's biggest construction materials group.
Prices for 10-year U.S. Treasuries gained, dropping yields to 2.70% from Friday’s 2.73%. Treasury prices and yields move in opposite directions.
Oil prices slumped 57 cents to $100.57 U.S. a barrel.
Gold prices dipped $4.50 to $1,299.00 U.S. an ounce.
