The Toronto stock market headed south Monday as resource stocks lost ground on sinking commodity prices amid concerns over the economic impact of Japan’s continuing nuclear crisis.
The S&P/TSX Composite Index dumped 146.66 points, or 1%, by the close to 13,892.77
The Canadian dollar moved up 0.38 of a cent at 102.4 cents U.S., after Canada’s top central banker sounded a warning about inflation over the weekend, suggesting interest rates may not be on hold much past a spring federal election.
Bank of Canada governor Mark Carney said Saturday that sustained growth from emerging economies means high commodity prices are expected to stick around for a long time.
Markets are watching developments at the Fukushima nuclear complex after it was hit hard by the March 11 earthquake and tsunami. Suggestions that highly radioactive iodine may be making its way into sea water farther north of the plant than previously thought has added to concerns.
Shares in uranium miners fell on renewed fears of the spread of radiation in Japan. Shares in Cameco Corp. were down 4.1% or $1.25 to $29.31, and shares in Uranium One Inc. fell 10.1% or 44 cents to $3.91.
Oil prices fell with shares in Suncor down 78 cents to $43.34.
On the TSX, gold stocks sank with shares in Kinross Gold Corp. down 3.6% or 56 cents to $15.20.
The May copper contract lost seven cents to $4.35 U.S. as shutdowns at Japan’s auto and other plants cuts demand for the metal used in manufacturing. Mining stocks on the TSX lost ground with shares in Teck Resources down 2% or $1.07 cents to $51.59.
The information technology sector was one of the biggest losers, as shares in market heavyweight Research In Motion Ltd. fell for the second trading day in a row after it gave a weaker-than-expected outlook for its current quarter last week. Shares were down 1.9% or $1.09 to $54.73.
In the financials sector, shares in CIBC were flat at $83.75 after it announced it shuffled the ranks of its senior executives Monday.
In corporate news, helicopter maker Eurocopter has made a friendly takeover bid for Toronto-based aircraft maintenance firm Vector Aerospace Corp. Eurocopter, a subsidiary of Dutch aircraft giant EADS, says it will pay $625 million in cash for Vector, which primarily performs repairs and overhauls for helicopters.
Vector shares gained 13% or $1.49 to $12.84.
CGI Group Inc. said it has extended its 15-year relationship with the Business Development Bank of Canada by winning a multimillion-dollar contract. The Montreal-based information technology company will develop a commercial lending IT program. Shares in the company were flat at $20.02.
The Canadian dollar could find lift later this week as traders get the latest look at economic growth on Thursday when Statistics Canada releases gross domestic product figures for January.
Economists expect the economy grew by 0.5%, the same as the previous month. Such a move up would be the fourth straight month of accelerating activity.
ON BAYSTREET
The TSX Venture Exchange slumped 32.40 points to 2,281.63, while the Nasdaq Canada index moved downward 6.96 points to 751.85
In Toronto, only real-estate issues gained, and only 0.3% at that, among the 14 subgroups. The rest lost strength, most notably metals and mining, gold, and materials, each down 1.8%.
ON WALLSTREET
In New York, stocks missed a chance at advancing for a fourth straight session Monday as investors remained cautious and continued to focus on global developments.
The Dow Jones industrial average moved 22.71 points higher to 12,197.90 The blue chip index's best performers included AT&T and Verizon. Both telecom giants were upgraded to "outperform" by Robert W. Baird.
The S & P 500 was off 3.61 points to 1,310.19. The tech-rich Nasdaq Composite Index shed 12.38 to 2,730.68.
First Solar, Netflix and Nvidia Corp. were among the best performers on both indexes.
Energy stocks, including Schlumberger, Baker Hughes and Halliburton were also big gainers among the S&P 500.
All three indexes managed to head higher last week, as investors turned their attention to strong corporate earnings and shrugged off geopolitical concerns. The Dow gained more than 3%, the S&P 500 rallied 2.7% and the Nasdaq surged 3.8%.
Stocks have been on a roller coaster ride the last several weeks amid ongoing concerns about Japan's nuclear crisis, along with continuing unrest in the Middle East and the civil war in Libya.
For the month, the market is flat, but stocks are on track to end the first quarter with gains. Since the start of 2011, the Dow and S&P 500 are up about 5%, and the tech-heavy Nasdaq is up more than 3%.
One expert added that improvement in the U.S. economy has helped boost stocks. The latest data has pointed to a steady recovery, which has lifted investor confidence.
At the end of the week, the government will release its key snapshot of the nation's job market.
Friday's monthly hiring and unemployment report from the Labor Department is expected to show that the economy added 185,000 jobs in March, while the unemployment rate remained steady at 8.9%, according to economists surveyed by Briefing.com.
Shares of Eastman Kodak jumped 9% after a federal agency said Friday that it would review the company's patent-infringement claim against Apple and BlackBerry maker Research in Motion.
Shares of Marriott International slumped 5% after the hotelier warned that its revenue per available room for the first quarter of the year will come in at the low end of its initial guidance. Marriott added that the figure has been lower than expected in North America,
especially in large markets such as New York, Atlanta, Orlando and Washington.
On the economic stage today, the Commerce Department reported that spending by individuals increased 0.7% in February, topping a forecasted 0.5% rise. Personal incomes rose 0.3% in the month, matching expectations.
The National Association of Realtors said pending home sales rose 2.1% in January. Economists were expecting sales to edge up 0.3%, according to economists surveyed by Briefing.com.
The price on the benchmark 10-year U.S. Treasury slipped a mite, bringing yields up to 3.45% from Friday’s 3.44%. Treasury prices and yields move in opposite directions.
Oil for February delivery fell $1.41 to $103.98 U.S. a barrel.
Gold futures for April delivery fell $4.60 to $1,421.60 U.S. an ounce.
