Stocks Tail off By Close

Monday, November 23, 2015

Pfizer-Allergan Deal Still Buzzing

Markets in Canada’s biggest centre gave up their earlier gains Monday , as shares in mining and health-care-related companies went down in price.

The S&P/TSX composite index moved negative 51.11 points to finish the day at 13,382.38

The Canadian dollar shed 0.12 cents at 74.78 cents U.S.

Metals and mining stocks took the biggest bruises, as Teck Resources slid 27 cents, or 4.7%, to $5.53, while Potash Corporation of Saskatchewan lost 34 cents, or 1.3%, to $26.33.

Power generation company TransAlta Corp shares surged 51 cents, or 9.4% to $5.96 after the Alberta government’s move to phase out coal-fired generation by 2030, a timeline that it said would not “strand capital.”

Uncertainty over the uncertainty of the future value of its coal assets in Alberta has hurt the stock price, according to officials with the company.

The Notley government in Alberta said on Sunday it will implement an economy-wide tax on carbon emissions in 2017.

Capital Power, which also operates in Alberta, fell $1.94, or 10.3%, to $16.82.

The overall energy group jumped as Encana Corp advanced 36 cents, or 3.5% to $10.67 and Suncor Energy added seven cents to $36.67.

Shares in Manitoba Telecom Services advanced $1.56, or 5.5%, to $30.15 after it announced a deal to sell its Allstream national fiber-optic network.

Valeant Pharmaceuticals International got roughed up, however, losing $3.98, or 3.3%, to $117.08, after spending a fair bit of the session in positive territory.

Among financials, Royal Bank of Canada slipped 58 cents, or 0.8%, to $75.49 and Manulife Financial Corp gave up 20 cents to $21.67.

ON BAYSTREET

The TSX Venture Exchange remained positive 0.51 points to 521.16.

Eight of the 13 TSX subgroups were lower, as metals and mining skidded 3.9%, health-care was down 1.7%, and industrials moved lower 0.8%.

The five gainers were led by energy stocks, chugging 0.9% higher, telecoms, up 0.6%, and consumer staples, better by 0.5%.

ON WALLSTREET

U.S. stocks traded mostly lower Monday as investors remarked on fluctuations in oil prices and looked ahead to economic reports in the shortened Thanksgiving holiday week.

The Dow Jones industrial average dipped 31.13 points to close at 17,792.68, dragged by declines in Apple, Goldman Sachs and Boeing, while Home Depot chipped in the most in terms of gains.

The S&P 500 gave up 2.58 points to 2,086.59. Energy briefly traded more than 1% higher to lead the S&P 500. Consumer staples and materials were also among the S&P advancers, with Alcoa trading 38 cents, or 4.4% higher to $9.07 U.S.

The NASDAQ index dipped 2.44 points to 5,102.48.

Pfizer traded 2.6% lower to $31.33 U.S. Earlier, the stock briefly fell more than 3% in morning trade after announcing it will buy Allergan for about $160 billion U.S. in the biggest deal ever in the health sector.

The transaction will allow the New York-based drug giant to relocate to Ireland to cut its U.S. tax burden. Shares of Allergan declined 3.4% to close at $301.72.

In other corporate news, activist investor Carl Icahn said insurance giant American International Group is “too big to succeed” and should separate into three public companies. The stock was up 0.9% to $62.76.

In economic news Monday, the Chicago Fed National Activity Index was minus 0.04 in October, up from minus 0.29 in September.

Existing home sales showed a decline of 3.4% in October.

Prices for 10-year U.S. Treasuries gained back lost ground, lowering yields to 2.25% from Friday’s 2.26%. Treasury prices and yields move in opposite directions.

Oil prices were static at $41.90 U.S.

Gold prices ditched $9.04 to $1,068.67 U.S. an ounce

 

Source: Baystreet.ca – Stocks Tail off By Close

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