The Toronto stock market made marginal gains Monday as traders looked for a bottom to a selloff that started last month and digested a major earnings disappointment from IBM Corp.
The S&P/TSX composite index added 56.06 points to greet noon at 14,283.74
The Canadian dollar eked higher 0.09 cents at 88.68 cents U.S.
In Canada, Valeant Pharmaceuticals International Inc. reported $275.4 million U.S. of quarterly net income, or 82 cents a share, and adjusted earnings of $718.8 million or $2.11.
Analysts had estimated $2 per share of adjusted income and 64 cents in net earnings. Valeant also raised its fourth-quarter adjusted profit estimate and its 2015 revenue growth forecast and its shares rose $2.01 to $137.45.
A sharp retracement on stock markets has pushed them well off the record highs set in September.
The TSX is down about 9% from its September highs, the Dow down five per cent and the S&P 500 is off 6.5% amid worries the euro-zone could slip back into recession and a global economic downgrade by the International Monetary Fund.
The industrials sector declined as Canadian Pacific Railway Ltd. confirmed Monday it held exploratory talks about a possible combination with U.S. railway CSX Corp. but those discussions have ended without a deal and no further talks are planned. CP shares dropped $2.14 to $222.85.
The base metals sector gave back ground while December copper was two cents lower at $2.98 U.S. a pound.
Elsewhere, Ottawa-based communications equipment maker Mitel Networks Corp. has offered to buy ShoreTel Inc. for about $540 million in cash but the proposal has been rejected by the California-based company's board. Mitel gained 14 cents to $9.64.
Economically speaking, wholesale sales edged up 0.2% to $53.1 billion in August. Statistics Canada noted that gains in three sub-sectors -- machinery, equipment and supplies, more than offset declines elsewhere. Excluding the motor vehicle and parts sub-sector, which recorded the largest decline, wholesale sales rose 1.0%.
ON BAYSTREET
The TSX Venture Exchange dipped 1.36 points to 808.77.
All but two of the 14 Toronto subgroups gained ground, most notably, gold and telecoms, up 1.5%, while materials, up 1.1%.
The two laggards were energy and the metals and mining groups, each down 0.1%.
ON WALLSTREET
U.S. stocks mostly climbed on Monday with the S&P 500 snapping back after its longest weekly loss streak since 2011, as the Dow slid after International Business Machines cut its earnings forecast.
The Dow Jones Industrials was off its lows of the morning, but remained 32.63 points to 16,347.78.
The S&P 500 gained 8.7 points to 1,895.46. The NASDAQ index gained 34.61 points to 4,293.05.
IBM shares slid 7.1% after the technology giant and Dow component posted third-quarter earnings short of estimates. Apple gained ahead of reporting results after the close.
Of 87 companies in the S&P 500 that have reported third-quarter results, 63.2% have beaten earnings expectations, 10.3% have reported in-line earnings and 26.4% have missed, according to Thomson Reuters.
Prices for 10-year U.S. Treasuries fell, raising yields back to Friday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices slid 60 cents to $82.15 U.S. a barrel.
Gold prices gained $5.90 to $1,246.80 U.S. an ounce.
