Canada's main stock index resume its downward progress on Monday, as oil prices dropped after Goldman Sachs cut its forecast for the commodity, sending down shares of energy companies.
The S&P/TSX composite index plummeted 177.13 points, or 1.2%, to greet noon at 14,207.79, its weakest level in nearly four weeks
The Canadian dollar faded 0.49 cents to 83.82 cents U.S.
The price of oil, which has been pressured by concerns about excess supply, reached its lowest since early 2009. Energy shares are down 41% since June.
Among energy issues, Canadian Natural Resources Ltd shed 4.8% to $31.58 and Suncor Energy losing 3.8% to $34.25.
Financials fell, as Toronto Dominion Bank declined 1.4% to $51.85, and Bank of Montreal was down 1.5% at $77.08.
The gold-mining sector climbed with the bullion price. Goldcorp advanced 2.9% to $25.35.
In corporate news, Linamar Corp will add up to 1,200 jobs at a facility in Guelph, Ontario, with 10% of the new investment paid by the federal government. Shares of the auto-parts maker were little changed.
ON BAYSTREET
The TSX Venture Exchange lost 9.38 points to 677.83
All but two of the 14 Toronto subgroups were down by noon ET. Metals and mining slumped 4.2%, energy was off 4.1%, and global base metals were down 2%.
The two gainers were gold, up 3.4%, and materials, up 0.7%.
ON WALLSTREET
U.S. stocks declined on Monday, erasing opening gains, as worries about the falling price of oil overrode enthusiasm that came with a bout of corporate deal making.
The Dow Jones Industrials tumbled 66.37 points – off its lows of the morning -- to 17,671.00, with Exxon Mobil and Chevron leading blue-chip declines
The S&P 500 subtracted 13.41 points to 2,031.40, with energy leading declines and telecommunications the sole sector in the green among its 10 major industry groups.
The NASDAQ index plummeted 30.85 points to 4,673.22.
Oilfield-services provider Schlumberger declined after Goldman Sachs Group downgraded its shares to neutral from buy, while also cutting its outlook for benchmark oil prices.
Bristol-Myers Squibb jumped after the drug developer reported upbeat results on a potential treatment for a common form of lung cancer.
Lululemon Athletica rose after the maker of yoga clothes hiked its outlook for fourth-quarter revenue and profit; SanDisk dropped after the supplier of memory chips for Apple's phones projected lower quarterly revenue than previously forecast.
Tiffany tumbled after the upscale jeweler cut its full-year earnings outlook.
NPS Pharmaceuticals surged after Shire said it would pay about $5.2 billion U.S. to purchase the developer of medicines to treat rare disease. Roche Holding said it would pay billions for a majority stake in genomic-test maker Foundation Medicine.
After the close, Alcoa reports fourth-quarter results, marking the unofficial start to the earnings season. The aluminum producer gained after Nomura Holdings advised purchasing its shares.
JPMorgan Chase, Wells Fargo and Citigroup are among the major banks scheduled to report earnings later in the week.
Prices for 10-year U.S. Treasuries gained ground, thus weighing yields to 1.93% from Friday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil prices stumbled $1.89 per barrel to $46.47 U.S.
Gold prices added $10.40 an ounce at $1,226.50 U.S.
