The Toronto stock market was having trouble finding direction in mid-morning trading Monday amid losses in the financial and technology sectors.
The S&P/TSX composite index lost 4.96 points to 12,234.68.
The financial sector lost 0.04 per cent after Democrats in the U.S. Senate reached a tentative deal to put more stringent regulations around derivatives trading. Derivatives are the complex securities blamed for helping precipitate the 2008 Wall Street crisis.
Shares in Bank of Montreal (TSX:BMO) bucked the trend and gained 23 cents to C$65.16. BMO said Friday it has acquired failed Illinois bank Amcore.
Under the deal, BMO will assume approximately US$2.1 billion in deposits and acquire roughly $2.5 billion in assets, including approximately $2 billion in loans. BMO’s Harris Bank unit is a key player in the Chicago-area and other parts of the U.S. Midwest states.
And Toronto’s information technology sector dropped more than one per cent as shares in BlackBerry-maker Research in Motion fell $1.58 or more than two per cent to $69. The company said Monday it was launching new versions of its BlackBerry Bold and Pearl ahead of its Wireless Enterprise Symposium, which begins Tuesday in Orlando.
Commodities were mixed in morning trading. The June crude contract on the New York Mercantile Exchange lost 34 cents to US$84.78 a barrel. The Toronto energy sector added 0.08 per cent, while shares in Encana Corp. (TSX:ECA) slipped 13 cents to C$32.54.
The June bullion contract on the Nymex edged up $2.60 US$1,156.30 an ounce. The gold sector added 0.3 per cent, while shares in Goldcorp Inc. (TSX:G) added 29 cents to C$40.66.
The May copper contract on the Nymex gained 1.75 cents to US$3.53 a pound. Shares in Teck Resources Ltd. (TSX:TCK.B) slipped 13 cents to $43.64.
The Canadian dollar edged up 0.12 cent from Friday’s close to trade at 100.03 cents US.
The TSX Venture Exchange gained 0.62 point to 1,671.53.
In New York, markets were mixed amid an upbeat earnings report from heavy equipment maker Caterpillar Inc. (NYSE:CAT). The Dow Jones industrial average rose 37.18 points to 11,241.46. The S&P 500 slipped 0.03 point to 1,217.31, while the Nasdaq lost 0.26 point to 2,529.89.
Caterpillar’s (NYSE:CAT) results are seen as an economic indicator, as demand for the company’s products indicate an increase in construction and other manufacturing activities. The company reported first-quarter earnings of US$233 million, beating analyst expectations after a one-time charge related to health-care expenses.
Monday also brought news of a big corporate acquisition in the U.S.
Hertz Global Holdings Inc. (NYSE:HTZ), the world’s largest car rental company, agreed to buy rival Dollar Thrifty Automotive Group (NYSE:DTG) for about US$1.17 billion in cash and stock.
In Canada, transportation giant Canadian National Railway Co. (TSX:CNR) will report its first-quarter results after markets close Monday, kicking off the first heavy reporting week of earnings season north of the border.
In Canadian corporate news, Greystar Resources Ltd. (TSX:GSL) said Monday it will appeal a Colombian ministry’s attempt to significantly change the scope of a major mining project that was expected to cost billions to build and operate over a 15-year period.
The Colombian environment ministry wants Greystar to file a new environmental study for the Angostura open-pit gold and silver mine. Shares in Greystar plunged $2.34 or 36 per cent to $4.15.
Jazz Air Income Fund (TSX:JAZ.UN) said it has agreed to invest US$15 million in Latin American Regional Aviation Holding Corp. in return for a one-third non-voting equity interest in the Uruguayan company. Shares in Jazz gained seven cents to $5.19.
Groupe Aeroplan Inc. (TSX:AER) says it will acquire a minority ownership stake of AeroMexco’s frequent flyer program. The Montreal-headquartered company, which originated as Air Canada’s frequent-flyer program, will initially invest US$22 million in the Mexican airline’s Club Premier and may pay an additional US$12 million if certain performance targets are met.
Aecon Group Inc. (TSX:ARE), a national construction company based in Toronto, has become a member of the joint venture that’s expanding one of Quebec’s major highways in partnership with the provincial government. Shares in Aecon gained 19 cents to $13.24.
Other major Canadian companies scheduled to report results this week include Canadian Pacific Railway Ltd. (TSX:CP), Barrick Gold Corp. (TSX:ABX), Goldcorp Inc. (TSX:G), Rogers Communications Inc. (TSX:RCI.B), Potash Corp. of Saskatchewan (TSX:POT), Canadian Oil Sands Trust (TSX:COS.UN) and Shoppers Drug Mart Corp. (TSX:SC).
Overseas, Britain’s FTSE 100 added 0.6 per cent, Germany’s DAX gained 0.9 per cent and France’s CAC 40 added 0.9 per cent.
