Equities in Toronto fell on Monday as gold miners, hit by bullion prices that fell below $1,100 U.S. an ounce to five-year lows, tumbled, with many big names falling more than 5% at the open.
The S&P/TSX composite index surrendered 104.08 points to begin the day and week at 14,538.76
The Canadian dollar stumbled 0.24 cents at 76.83 cents U.S.
A train derailed on Saturday, halting passenger rail service on major routes between Toronto and Ottawa, as well as Toronto and Montreal, Via Rail said. Canadian National said seven cars on a westbound freight train derailed at about 13:50 ET near Bowmanville, Ont. about 75 km east of Toronto.
CN shares reversed 29 cents to $77.52 at the open.
Roth Capital cut the target price on Amerigo Resources Ltd. to $1.20 from $1.30 after the company’s second-quarter results came below expectations.
Amerigo shares took on a penny to 34 cents.
Barclays raised the price target on Loblaw Companies to $72.00 from $70.00, on the estimate that once the company achieves its debt reduction target, it will have access to $1 billion in excess cash flow to use predominantly for share buybacks, and to support regular dividend increases.
Loblaw shares added nine cents to $68.01.
Brookfield Canada Office Properties reports earnings today, expecting full-year earnings of $1.95 per share. Brookfield units scaled back 13 cents, or 0.5%, to $25.06.
Peyto Exploration & Development also reports, expecting Q2 earnings of 25 cents per share. Peyto shares gave back 16 cents to $30.00.
On the economic front, Statistics Canada reported that wholesale trade decreased 1.0% to $54.5 billion in May, following two consecutive increases. Lower sales in four sub-sectors, which together represented 65% of wholesale sales, accounted for the decline.
Excluding the motor vehicle and parts sub-sector, wholesale sales declined 0.6%.
ON BAYSTREET
The TSX Venture Exchange slid 0.29 points to 628.52
All but two of the 14 TSX subgroups were off soon after the opening bell, as gold jettisoned 6.1%, materials sank 3.5%, and the metals and mining sector gave up 2.1%
The two gainers were information technology, up 0.2%, and health-care, ahead but 0.1%.
ON WALLSTREET
U.S. stocks traded in a narrow range on Monday, following a record close on the NASDAQ Composite, as investors focused on second-quarter earnings reports.
The Dow Jones industrial average dipped 15.10 points to 18,071.35, with Apple leading gains and Home Depot the greatest laggard.
The S&P 500 nosed higher 0.36 points to 2,127, with energy leading seven sectors lower and health care the greatest advancer.
The NASDAQ index gained another 10.73 points – on top of Friday’s record close -- to 5,220.87,
No major economic reports are due Monday. About 130 S&P and Dow industrial names post quarterly results this week.
Morgan Stanley earned an adjusted 79 cents U.S. per share, five cents above estimates, with revenue also above forecasts. The results were helped in part by strong growth in trading revenue.
Another tech giant, Apple, reports quarterly results after the close Tuesday. Shares of the iPhone maker jumped more than 1.5% in morning trade Monday.
In other news, PayPal jumped more than 6% in its first day of trade as its own publicly traded company under the ticker "PYPL" today following separation from eBay. Shares of eBay traded about 1% lower.
IBM posts quarterly earnings after the close.
In other morning reports, Hasbro reported quarterly profit of 33 cents U.S. per share, four cents above estimates, with revenue well above consensus despite the impact of the stronger dollar.
Halliburton beat forecasts by 15 cents with adjusted quarterly profit of 44 cents U.S. per share, with revenue exceeding forecasts, as well. Like its peers, Halliburton saw a significant drop in drilling activity compared to a year earlier, but was helped by strength in its international profit margins.
Prices for 10-year U.S. Treasuries were lower, spiking yields to 2.38% from Friday’s 2.35%. Treasury prices and yields move in opposite directions.
Oil prices fell 49 cents a barrel to $50.40 U.S.
Gold prices tumbled $24.00 to $1,107.90 U.S. an ounce.
