Mar. 15, 2010 (Baystreet.ca) --
Snapping their three-day winning streak, Canadian stocks lingered in the red in mid-morning deals Monday as traders turned cautious ahead of a slew of economic data this week.
The S&P/TSX composite index gave back 96.05 points as the clock approached noon, to 11,917.77.
Moreover, the main index closed the previous session at its calendar year high, prompting investors to book profit at higher levels.
Meanwhile, commodities prices eased on renewed concerns that China will tighten its monetary policy to cool off its economic growth.
The Energy Index suffered the most, with Canadian Natural Resources surrendering 2.15%. Crew Energy lost 1.03%.
Drilling and well services contractor Ensign Energy Services gave in 1.26% after reporting a drop in its fourth-quarter funds from operation at $0.38 per share from $0.71 per share in the year-ago period.
Nonetheless, the company increased its quarterly dividend by 3% to $0.0875 per common share from $0.0850 per common share in the third quarter of 2009.
Provident Energy Trust was down 2.82% after RBC trimmed its rating on the stock to an "Under-perform" from a "Sector Perform".
Financial stocks were mixed ahead of a crucial finance reforms bill across the border. While Bank of Montreal and Canadian Imperial Bank edged up, National Bank of Canada and Canadian Western Bank were down marginally.
Iamgold was down 1.60%. Eldorado Gold slipped 1.25%
Meanwhile, gold mining company Kirkland Lake Gold gathered 2.00% despite reporting a wider third-quarter loss of $0.13 per share, compared to a loss of $0.08 per share last year.
Exploration and mine development company Exeter Resource was up 2.16% after it said it will spin-out its Argentine assets into Extorre Gold Mines Ltd.
First Uranium slipped 1.79%. Raymond James hiked its rating on the stock to an "Outperform" from a "Market Perform".
Minerals explorer WGI Heavy Minerals rose 5% after it swung to profit in the fourth quarter reporting earnings of $0.01 per share, compared to a loss of $0.15 per share in the prior year quarter.
Agrium Inc. eased 0.68%. RBC resumed coverage of the stock with an "Outperform" rating.
Industrial and commercial construction company Bird Construction Income Fund slipped 1.89%. The company reported a lower net income of $0.93 per unit in the fourth quarter, compared to $1.04 per unit in the prior year quarter and approved regular cash distributions of $0.15 per unit each for March and April 2010.
In economic news, Statistics Canada said new motor vehicle sales were unchanged at 128,426 units in January. Sales of new trucks were up by 2.4% to 65,726 units, but sales of North-American built passenger cars dipped by 8.2% to 34,234 units.
In other news, Canadian home re-sales fell 1.5% to 42,799 units in February from the previous month, according to data released by the Canadian Real Estate Association. Meanwhile, the average resale prices of homes were up 18.2% to $335,655 in February from a year-ago period.
The Canadian dollar was down 0.31 cents to 97.90 cents U.S.
ON BAYSTREET
All 14 TSX subgroups headed downward by lunch time. Metals and mining stocks weighed heaviest, off 2%, energy stocks slid 1.9% and global base metals were down 1.5%.
The TSX Venture Exchange removed 4.98 points to 1,563.31, while the Nasdaq Canada index lost 4.15 points to 803.31.
ON WALLSTREET
In New York, stocks dipped Monday as investors hesitated ahead of the latest Federal Reserve policy meeting and after two of the major indexes ended last week at 18-month highs.
The Dow Jones industrial average backslid 43.53 points to 10,581.16. The S&P 500 index slipped 7.99 points to 1,142, and the Nasdaq composite moved backward 21.48 points to 2,346.18.
Markets may be set for a volatile week as investors mull recent gains that have lifted the Nasdaq and S&P 500 to their highest level in 18 months. The Dow stands just below the same levels.
The Federal Reserve's decision on interest rates, due Tuesday, will help to dictate the direction of the market for the remainder of the week.
Since bottoming at a six-year low on March 9 of last year, the Nasdaq has gained 87%. Since bottoming at a 12-year low on the same day, the S&P 500 has gained 70% and the Dow has gained 62%.
Investors lost confidence Monday after Moody's Investor Services said the United States is closer to losing its AAA credit rating, said some experts.
Google was in the spotlight Monday following news reports saying that the search giant is moving closer to shutting its Web site in China.
Back in January, Google said it may leave China and shut its site there, Google.cn, citing censorship rules and a targeted cyber attack on its network infrastructure.
Google shares fell 2% in morning trading.
Troubled insurer AIG said Monday it would retain $21 million U.S. in bonus payments to former employees. AIG is also slated to pay out $46 million U.S. to current and former employees of the Financial Products division on Monday.
AIG shares gained 4% in morning trading.
Philips-Van Heusen, the owner of Calvin Klein, reached a deal to buy Tommy Hilfiger for about $3 billion U.S. in cash and stock. Phillips-Van Heusen rallied 12%.
Senate Banking chief Christopher Dodd is expected to release a draft bill of financial rules aimed at preventing future financial crises.
Meanwhile, Treasury prices moved up slightly, lowering the yields on the benchmark 10-year note to 3.72%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil slid $1.67 to $79.57 U.S.
Gold prices picked up two dollars to $1,104 U.S.
