TORONTO - The Toronto stock market closed lower Monday, snapping a long string of gains as the market was weighed down by energy stocks even as oil closed above US$80 a barrel.
The S&P/TSX composite index lost 74.54 points to 11,634.75 as investors took a pause ahead of a big slate of economic data and earnings news this week.
The negative showing came after eight straight days of gains that sent the main index up more than five per cent on signs of a strengthening U.S. economy and higher commodity prices.
"(The market) certainly has a good tone despite all the problems out there that are going on in Greece and potentially other countries," said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier, referring to the sovereign debt crisis that has unnerved investors in recent weeks.
"Earnings are doing very well here and I guess all the signs point to further earnings improvement."
The Canadian dollar slipped 0.2 of a cent to 95.91 cents US.
The TSX energy sector was the leading decliner, losing 1.02 per cent as oil prices established a toehold above the US$80 a barrel mark. The March crude contract on the New York Mercantile Exchange, which expired Monday, gained 25 cents to US$80.16 a barrel. The more active April contract also rose 25 cents to US$80.31. EnCana Corp. (TSX:ECA) fell 92 cents to C$33.87.
Suncor Energy Inc. (TSX:SU) said its production of synthetic crude oil and bitumen in February and March will be below the company's Feb. 2 guidance due to repairs required at a fire-damaged upgrader. The upgrader is expected to be operational again in April. Suncor shares were down 38 cents at $31.55.
Investors also took in a major piece of dealmaking over the weekend in the energy sector. Schlumberger Ltd. is buying rival oilfield-services provider Smith International Inc. in a stock deal worth about US$11.34 billion. Smith shares climbed $3.33 to US$41.03 and Schlumberger shares declined $2.33 to US$61.57.
The April gold contract on the Nymex was $9 lower to US$1,113.10 an ounce and the gold sector moved down 1.05 per cent. Barrick Gold Corp. (TSX:ABX) declined 93 cents to C$40.07.
The telecom sector lent support, up 0.27 per cent with Telus Corp. (TSX:T) ahead 32 cents to $33.82.
The base metals sector advanced 0.21 per cent, even as the March copper contract in New York dipped five cents to US$3.30 a pound. First Quantum Minerals (TSX:FM) gained $2.23 to C$81.15 while HudBay Minerals (TSX:HBM) gave back 22 cents to C$13.56.
Earnings and economic data will continue to provide traders with insight into the U.S. economy throughout the week.
In Canada, CIBC and National Bank will kick off the quarterly earnings reporting season for the big Canadian banks. Both banks issue quarterly reports on Thursday and analysts are looking for a positive quarter.
"I think capital markets should surprise on the upside," Nakamoto said. "Loan losses I think, are contained (and) loan growth, primarily on the residential mortgage side, is probably pretty robust here."
Ahead of those earnings, the TSX financial sector was down 0.52 per cent as Royal Bank (TSX:RY) lost 49 cents to $56.60 while Manulife Financial (TSX:MFC) trimmed 17 cents to $19.48.
In the United States, retailers are in focus this week. On Monday, home improvement retailer Lowe's Cos. reported fourth-quarter profit rose 27 per cent. But its earnings forecast for the prime spring quarter was below analyst expectations and its shares were six cents lower at US$23.07.
Elsewhere in the sector, Canadian home renovations leader Rona Inc. (TSX:RON) is entering the specialized plumbing market in Quebec with the acquisition of distributor and retailer Plomberie Payette & Perreault Inc. for an undisclosed sum. Its shares were off 18 cents to $15.22.
An updated estimate on U.S. economic output for the fourth quarter is also scheduled for release this week. The gross domestic product report, due out Friday, is expected to show that the American economy grew at a pace of 5.6 per cent in the final three months of 2009.
An initial reading of GDP showed growth of 5.7 per cent.
Also, the latest reading on consumer confidence from the U.S. Conference Board will be released on Tuesday.
The TSX Venture Exchange moved down 3.43 points to 1,528.47.
New York's Dow Jones industrials edged 18.97 points lower to 10,383.38. The Nasdaq composite index lost 1.84 points to 2,242.03 while the S&P 500 index closed down 1.16 points at 1,108.01.
Investors will also focus on testimony from U.S. Federal Reserve Board chairman Ben Bernanke on Wednesday and Thursday.
In particular, they will be interested to hear what Bernanke says about last week's decision by the Fed to raise its discount rate -- the amount banks pay for emergency loans -- by a quarter of a percentage point to 0.75 per cent.
In other corporate news:
- Open Text Corp. (TSX:OTC) has offered to buy Montreal-based digital content manager Nstein Technologies Inc. (TSXV:EIN) for $35 million. Nstein's board supports the offer of 65 cents per share, payable in cash or shares, which is a 91 per cent premium to the Friday closing price for the stock. Open Text shares gained 94 cents to $50.16 while Nstein shares soared 30 cents or 88.24 per cent to 64 cents.
- Canadian transponder maker Sirit Inc. (TSX:SI) said it has received a higher takeover offer from Federal Signal Corp. (NYSE:FSS), which is now offering 43 cents per share cash -- up from the initial offer of 30 cents per share. The new offer values Sirit's outstanding shares at about $69.3 million. Sirit shares rose 12.5 cents to 42.5 cents.