Equities in Canada’s largest market slipped in early trade on Monday, weighed by slips in energy and materials stocks and in Valeant Pharmaceuticals International Inc, which sought to address allegations it had artificially inflated its revenue.
The S&P/TSX composite index erased 52.16 points to open Monday at 13,901.50
The Canadian dollar eked up 0.08 cents at 76.04 cents U.S.
APR Energy Plc said it had reached an agreement to be bought by a consortium that includes Fairfax Financial Holdings, its largest shareholder, in a deal valuing the power plant supplier at about 165 million pounds. APR said the 175 pence-per-share cash offer represents a premium of 87.7% to the stock's closing price on Oct. 2, the last trading day before the company said it was talks to be bought by the consortium.
Fairfax shares took on $3.03 to $647.71.
Valeant said it would set up an ad hoc committee to look into allegations about the company's association with specialty pharmacy distributor Philidor. Valeant also added that a board review found the company was in compliance with the law on revenue recognition from drugs sold through Philidor.
Valeant shares slid $6.21, or 4.1%, to $146.48.
CIBC cut the target price on Argonaut Gold to $2.50 from $3.00 as the company announced that it has suspended mining operations at its flagship El Castillo mine in Mexico due to an illegal blockade by local land owners.
Argonaut shares were unchanged at $1.45.
National Bank Financial raised the target price on Thomson Reuters to $62.50 from $58.00 following the company’s quarterly results.
Thomson shares were static at $54.60.
Capital Power Corporation reports Q3 results today, expecting earnings of 27 cents per share. Capital shares dipped 43 cents, or 2.2%, to $19.06.
West Fraser Timber expects Q3 earnings of 42 cents per share. West Fraser shares were unchanged at $47.52.
ON BAYSTREET
The TSX Venture Exchange advanced a mere 0.2 points to 551.41
Nine of the 13 TSX subgroups headed lower, as gold dropped 2.1% of its strength, metals and mining subsided 1.6%, and energy proved 1.3% less energetic.
The four gainers were co-led by telecoms and health-care, each up 0.4%, and financials, ahead 0.3%.
ON WALLSTREET
U.S. stocks traded mostly lower Monday, attempting to hold last week's gains, as investors readied for another week of earnings and central bank announcements.
The Dow Jones industrial average slid 28.79 points to 17,617.91, as a decline of more than 2.5% in Apple offset gains in Goldman Sachs.
The S&P 500 fell 7.63 points to 2,067.52, with energy leading nine sectors lower and consumer discretionary the only sector trying for gains.
The NASDAQ index dropped 12.01 points to 5,019.86.
In corporate news, NYSE owner Intercontinental Exchange announced it will acquire Interactive Data Corporation for about $5.2 billion U.S.
Valeant Pharmaceuticals said it has formed a committee to review allegations against the company. The firm's CEO also asked the SEC to investigate Citron Research.
Xerox reported earnings that topped estimates but revenue missed. The office solutions company's results were hurt by lower printer sales and a strong dollar, and said it would conduct a review of its business operations.
Firms expected to report after the close include AvalonBay, Broadcom, Edwards Lifesciences, Everest Re, Hartford Fincl., and Cheesecake Factory.
Key earnings for the week include Apple on Tuesday and Exxon Mobil on Friday.
In U.S. economic news, September new home sales fell 11.5% to near a one-year low after two straight months of gains.
The Federal Open Market Committee kicks off its two-day meeting Tuesday and is scheduled to release its statement Wednesday afternoon.
Prices for 10-year U.S. Treasuries gained ground, thus lowering yields to 2.06% from Friday’s 2.09%. Treasury prices and yields move in opposite directions.
Oil prices were down 54 cents a barrel to $44.06 U.S.
Gold prices gained $2.84 to $1,167.29 U.S. an ounce.
