Stocks Dip at Outset

Vermilion, Bombardier in Focus

Canada's main stock index fell on Monday, as oil prices halted their rally, pressuring the energy sector.

The S&P/TSX Composite Index subtracted 31.26 points, to open a short week at 16,449.27

The Canadian dollar gained 0.08 cents at 75.09 cents U.S.

Markets will be closed Friday for Good Friday

Lundin Mining said it plans to buy one of Yamana Gold's gold-copper mines in Brazil for more than $1 billion.

Lundin shares gained 42 cents, or 6.2%, to $7.25. Yamana shares retreated 14 cents, or 4.1%, to $3.28.

Officials say Vermilion Energy will drill its first two exploration wells in Croatia in June. Shares in Vermilion lost 10 cents to $35.03.

Gulfstream Aerospace and Bombardier are trotting out their longest-range business jets at an Asian air show this week, as they compete for orders from China's growing elite, despite the country's slowing economy.

Bombardier lost seven cents a share, or 2.6%, to $2.64.

RBC raised the target price on Alimentation Couche-Tard to $88.00 from $85.00. Couche-Tard slid 52 cents to $81.28.

Eight Capital raised the rating Kirkland Lake Gold to "buy" from "neutral". Kirkland Lake Gold climbed 34 cents to $42.54.

Desjardins raised the target price Manulife Financial to $28.00 from $27.00. Manulife shares gained 10 cents to $24.27.

Aphria Inc fell $1.83, or 13.7%, the most on the TSX, to $11.58, after reporting quarterly revenue that missed expectations.

On the economic calendar, the Canadian Real Estate Association reported home sales via Canadian MLS Systems edged up 0.9% in March following a sharp drop in February, leaving activity near some of the lowest levels recorded in the last six years.


The TSX Venture Exchange docked 4.02 points to 621.62

Eight of the 12 Toronto subgroups were in red in the first hour of trade, with health-care jettisoning 2.8%, while gold and consumer discretionary stocks each off 0.5%.

The four gainers were led by utilities and information technology, each up 0.2%, and communications, nicking up 0.1%.


Stocks traded along lower on Monday as investors digested mixed quarterly numbers from big banks like Goldman Sachs and Citigroup.

The Dow Jones Industrial Average decreased 41.32 points to 26,370.98

The S&P 500 settled 3.5 points to 2,903.81.

The NASDAQ Composite lopped off 20.14 points to 7,964.03

Goldman Sachs reported better-than-expected earnings as the bank kept compensation in check, but its revenue came in below analyst expectations as sales from its institutional clients division dropped by 18%. Shares of Goldman dropped 2.5%.

Meanwhile, Citigroup earnings topped expectations as the company repurchased more than $4 billion in stock. However, a 20% in its equity trading division contributed to a 2% fall in overall revenue, with disappointed analysts. Citigroup shares pulled back 1%.

Goldman Sachs and Citigroup released their earnings after J.P. Morgan Chase and Wells Fargo posted their results on Friday. J.P. Morgan Chase’s numbers lifted the broad market on Friday, with the Dow gaining more than 260 points. Wells, meanwhile, fell on a profit warning from its chief financial officer.

Despite the varied results from the big banks, the overall earnings season is off to a solid start. Of the companies that have reported, 85% have topped analyst earnings expectations

Other companies that reported quarterly earnings on Monday include Charles Schwab and M&T Bank. Schwab shares rose nearly 2%, but M&T Bank dipped 0.2%

Wall Street also pored through the latest news on the trade front. Treasury Secretary Steven Mnuchin said Sunday the U.S. is willing to take a penalty if it does not comply with a China trade deal once the two countries reach one. However, Mnuchin said Monday the two sides had a lot of work left ahead of them.

Prices for the benchmark 10-year U.S. Treasury were unchanged, keeping yields at Friday’s 2.56%.

Oil prices sank 27 cents to $63.62 U.S. a barrel.

Gold prices plunged $7.40 to $1,267.80 U.S. an ounce.