The Toronto stock market was in the red Tuesday as earnings from Bank of Montreal missed forecasts and U.S. Federal Reserve chairwoman Janet Yellen continued to lay the groundwork for a hike in interest rates.
The S&P/TSX composite index ditched 35.29 points to close Tuesday at 15,164.97
The Canadian dollar faded 0.20 cents to 79.54 cents U.S.
Bank of Montreal posted lower earnings amid an "unsettled environment" that saw the bank deal with "significant movements in oil prices, long-term interest rates and the Canadian dollar."
Adjusted net income was $1.04 billion or $1.53 a share, a dime short of estimates and its shares were down $1.55, or 2%, at $75.83.
Most other bank stocks were also lower as traders anticipated earnings from the other four of the six major lending institutions reporting this week will report similar issues.
March copper was up six cents at $2.65 U.S. a pound and the base metals sector rose, as Sherritt International added 11 cents, or 4.6%, to $2.50
The TSX energy sector surrendered early gains to move down, as Suncor subsided 33 cents to $38.34, although Canadian Natural Resources moved ahead 15 cents to $37.55.
The gold sector was off as Barrick Gold deducted 29 cents, or 1.8%, to $15.70, and Agnico Eagle stepped back 58 cents, or 1.5%, to $38.18.
The real-estate sector proved the worst off, with H&R REIT down 56 cents, or 2.4%, to $23.07.
Canadian National Railway arrived at a tentative agreement Monday with Unifor, which represents about 4,800 mechanical, intermodal and clerical workers, less than an hour after the railway's 11 p.m. ET deadline to lock out the union's members. CN declined 13 cents to $86.59.
Fertilizer company Agrium Inc. turned in quarterly net earnings of $51 million U.S. or 33 cents a share, down from $99 million U.S. or 66 cents in the same 2013 period. Sales revenue fell by $162 million U.S. to $2.7 billion U.S. from just under $2.9 billion U.S. Its shares ran ahead $4.06, or 2.9%, to $142.08.
ON BAYSTREET
The TSX Venture Exchange dropped 0.17 points to 692.06
Nine of the 14 Toronto subgroups were lower on the day, as real-estate fell 1.2%, gold doffed 1.1%, and telecoms surrendered 0.8%.
The five gainers were led by metals and mining issues, growing 3.6%, global base metals, up 2.4%, and consumer staples, picking up 1.3%.
ON WALLSTREET
U.S. stocks closed at highs on Tuesday as Fed Chair Janet Yellen's congressional testimony indicated that a rate hike would likely come later rather than sooner.
The Dow Jones Industrials leaped 92.35 points to 18,209.19, led by 4% gains on Home Depot.
The S&P 500 improved 5.82 points to 2,115.45. The NASDAQ index was better by 7.15 points to 4,968.12, holding near 15-year highs.
Stocks climbed to new records amid Yellen's remarks to the Senate Banking, Housing and Urban Affairs Committee on Tuesday. She will address the House Financial Services Committee on Wednesday.
Macy's reported earnings for the holiday quarter that missed analyst estimates.
Comcast earned an adjusted 77 cents U.S. per share for the fourth quarter, one cent below estimates, though revenue was above Street forecasts. Comcast raised its annual dividend by 11% to $1 U.S. per share and increased its share repurchase authorization to $10 billion U.S.
Hewlett-Packard, Lending Club, Boston Beer, Dreamworks Animation, First Solar, La Quinta and Newfield Exploration are due after the bell.
On the data front, the S&P/Case-Shiller composite index of home prices in 20 cities increased by 4.5% in December from the same period last year.
However, home builder Toll Brothers easily topped estimates on earnings and revenue as the firm sold more homes at higher prices. Toll earned 44 cents U.S. per share for its first quarter, well above estimates of 30 cents U.S.
U.S. consumer confidence fell more than expected in February, pulling back from a multi-year high according to a private sector report released on Tuesday.
However, financial data firm Markit said its preliminary reading of its Purchasing Managers Index for the service sector rose to 57.0 in February from 54.2 in January, indicating that the U.S. services sector expanded in February at its fastest pace since October, with businesses reporting more orders because of improving economic conditions.
Prices for 10-year U.S. Treasuries pointed up slightly, lowering yields to 1.99% from Monday’s 2.06%. Treasury prices and yields move in opposite directions.
Oil prices slipped 31 cents per barrel to $49.14 U.S.
Gold prices skidded 60 cents an ounce to $1,200.20 U.S.
