Blue chips in Toronto traded lower Monday -- led by declines in tech shares -- as oil prices moved lower ahead an OPEC meeting later in the week, where production is expected to be cut again.
The S&P/TSX composite index was down 53.62 points to 8,461.83.
Stocks got an early boost after industry minister Tony Clement said that the government will put up $3.4 billion in aid to the auto industry, contingent on the U.S. government putting together a US$14-billion package.
In Canadian corporate news, Allen-Vanguard Corp. which makes protective equipment for both the Canadian and U.S. military, has secured a $15.3 million contract to build blast protection seats for General Dynamic Land Systems-Canada.
Garda World Security Corp. shares were ahead after the company reported a third-quarter loss of $2.2 million, reversing year-earlier profit of $4.1 million.
On the data front -- the New York Empire State Index for general business conditions fell to -25.8 for the month of December, down from -25.4 in the prior month. But this is not as low as the -27 projection from a consensus of economists provided by Briefing.com.
In Canada -- existing home sales fell to their lowest level in nearly eight years in November, as the economic slowdown squeezed housing markets across the country, the Canadian Real Estate Association said on Monday.
Existing home sales were down 12.3 percent to a seasonally adjusted 27,743 units in November from October, CREA said, which marked the lowest level for monthly activity since January 2001.
The Canadian dollar, meanwhile, was trading up 0.70 of a cent to 81.10 cents US.
BAYSTREET
Three of the TSX sub-groups traded higher today -- gold stocks were up 3.67 percent followed by a 0.49 percent rise in miining issues.
Gold was gaining $9.20 to $829.70 US an ounce.
On the downside -- tech stocks fell 2.40 percent; financial issues shed 2.34 percent and telecom stocks dipped 1.92 percent.
Meanwhile, the TSX Venture Exchange slipped 1.73 points to 716.81 and the NASDAQ Canada was off 13.72 points at 389.20.
ON WALLSTREET
U.S. stocks fell on Monday, with financial shares weighing on the broader market as firms detailed their exposure to the alleged $50 billion fraud by Bernard Madoff.
The Dow Jones Industrial Average was recently down 65.15 points, or 0.8 percent, at 8564.53, and the S&P 500 was losing 11.14 points, or 1.3 percent, at 868.59. The Nasdaq declined 32.38 points, or 2.1 percent, to 1508.34.
Money manager Madoff was arrested last week on charges that he instigated a $50 billion pyramid scheme that hit companies around the globe.
A federal rescue plan for Detroit's Big Three Automakers failed to pass the Senate late Thursday after the United Auto Workers union refused Republicans' demand for aggressive wage reductions. The House had already approved the plan to provide aid to Ford, General Motors and Chrysler.
Chrysler and GM, though, have said they may have only weeks of sustainability remaining. President Bush is urging action on $25 billion in proposed emergency loans for the automakers. The White House said it might now be willing to use money drawn from the $700 billion Wall Street bailout, known as the Troubled Asset Relief Program (TARP). The Treasury also said it's prepared to pitch in.
In other news, Goldman Sachs and Morgan Stanley are expected to report their quarterly results this week -- Goldman is expected to report its first quarterly loss as a public company.
Japanese automaker Toyota will suspend building at its new plant in Mississippi, according to a Dow Jones report. Investment in the plant, the first in the U.S. to manufacture the Prius hybrid, was projected at $1.3 billion. The plant was to employ 2,000 workers, according to the report.
Reuters reported earlier that Toyota is expected to slash its 2009 sales forecast by at least 1 million vehicles and outline plans to cut costs at its year-end news conference next week.
Longer-dated U.S. Treasury securities were rising in price. The 10-year was adding 11 0.5/32 to yield 2.5 percent, and the 30-year was up 1 3/32, yielding 3 percent. The American dollar was weaker against the euro, pound, and yen.
OPEC is scheduled to meet this week to evaluate the effectiveness of its earlier decision to cut production targets by 1.5 million barrels per day, and to weight the need for more cuts. Another OPEC production cut could help stabilize oil prices that have fallen with global economic hardships.
Tracking commodities, after rising earlier in the day, crude oil fell $1.77 to settle at $44.51 US a barrel.
