Stocks in Toronto were trading flat Monday afternoon as declines in energy stocks were offset by a positive move in the mining sector amid higher commodity prices.
The S&P/TSX Composite Index inched up 0.32 points to 14952.65 in afternoon trading Monday.
Transat A.T. Inc. says it’s having a better summer season than expected and its third-quarter results will show “significantly higher” adjusted earnings than during the comparable period last year.
On the economic front, Canadian wholesale trade fell by 0.5 percent in June after eight consecutive monthly increases, largely pulled down by lower sales of food and motor vehicles, Statistics Canada said on Monday.
The decrease was greater than the 0.2 percent drop forecast by analysts in a Reuters poll. Five of the seven subsectors posted declines.
In volume terms, sales edged down by 0.7 percent.
The Canadian dollar gained 0.067 cents to 79.54 cents U.S.
ON BAYSTREET
The TSX Venture Exchange slipped 0.51 points to 769.25.
Four of the 12 TSX subgroups were negative this afternoon, with energy retreating 1.56%, health-care issue off 0.66% and industrial stocks slumping 0.11%.
On the upside, base metal stocks were ahead 1.84%, gold stocks rose 1.18% and material issues gained 1.08%.
Gold prices were up $7.36 to $1,291.86 U.S. an ounce.
ON WALLSTREET
U.S. stocks were trading flat Monday afternoon, as investors were reluctant to jump into the markets as geopolitical tensions remained high.
The Dow Jones Industrial Average was up 0.08% and the S&P 500 added 0.07%, while the Nasdaq was off 0.17%.
Worries over North Korea resurfaced over the weekend after the authoritarian nation warned that its army could target the U.S. at anytime, and that Guam, Hawaii nor the mainland won't be able to "dodge the merciless strike."
In corporate news, Nike Inc. (NKE) fell 3% on a ratings downgrade. Jefferies cut its rating to hold from buy and reduced its price target to $60 from $75 as competition from Adidas AG (ADDYY) intensifies. Nike's growth and margins could be at risk moving ahead as elevated selling, general and administrative expenses occupy near-term funds and marketing campaigns become more important for Nike's ability to "defend its turf" from Adidas, Jefferies said.
Shares in Sempra Energy rose 1.2% following news the San Diego Gas & Electric parent has reached a deal to buy Oncor for $9.45 billion, swooping in to snatch the power-transmission company away from Warren Buffett’s Berkshire Hathaway.
The yield on the benchmark 10-year Treasury note was in the red at around 2.187 percent, while the yield on the 30-year Treasury bond was lower at 2.772 percent. Bond yields move inversely to prices.
The September crude contract was down 80 cents to $47.71 (U.S.) per barrel.
