North American stock markets edged only slightly higher on Monday after trading sideways for most of the day, as economic worries overshadowed deal activity ahead of housing reports and second quarter growth revisions due this week. According to a Bloomberg Survey, US housing data from the National Realtors Association to be released tomorrow is expected to show that July sales of existing homes plunged by 13% from June.
The euro declined against the US dollar 0.35%, while the US dollar index, which tracks the U.S. currency against a basket of six others, went up 0.15%.
Canadian Markets
Since opening, the S&P/TSX index advanced 0.22% to trade at the 11,748 level in the afternoon.
In afternoon trading, six of the eight Canadian sector indices showed modest gains with the industrials and technology sector declining the most.
The energy sector rallied despite the weakness in oil prices. Husky Energy (TSX:HSE, PINK:HUSKF) and Suncor Energy (TSE:CLT, NYSE:SU) went up 0.52% and 0.03%, respectively. Talisman Energy (TSX: TLM, NYSE:TLM) was an exception, retreating 0.45%.
Gold companies were in the red all across the board in Canada. Barrick Gold (TSE: ABX, NYSE:ABX) and Agnico-Eagle Mines (TSX: AEM, NYSE:AEM) declined 1.15% and 2%, respectively. Goldcorp (TSE:G, NYSE:GG) and Kinross Gold (TSE: K, NYSE:KGC) also chalked up losses of 1.21% and 0.86%, respectively.
In financials, Bank of Montreal (TSX:BMO, NYSE:BMO) advanced 1.32%, while Bank of Nova Scotia (TSX: BNS, NYSE:BNS) and Toronto-Dominion Bank (TSX:TD, NYSE:CM) advanced 0.59% and 0.65%, respectively, on the Toronto Stock Exchange.
US Markets
In the US, the S&P 500 and Dow Jones indexes gained 0.33% and 0.35%, respectively, while the Nasdaq index retreated 0.17%.
Among all the sectors, the utilities and healthcare sectors were the top performers while the technology and capital goods sectors suffered the most losses, reflecting growing concerns that the US economy is at risk of a double-dip recession.
In corporate news, Hewlett-Packard (“HP”) (NYSE: HPQ) has offered to buy 3PAR (NYSE: PAR), the maker of data storage equipment and software, for $1.6 billion, or $24 a share - 33% higher than Dell`s offer on August 16. 3PAR has surged 43% in afternoon trading since the press release, while HP has declined 1.66%.
Potash Corp. of Saskatchewan (TSE: TSE:POT, NYSE:POT) announced that its board of directors has unanimously rejected BHP Billiton’s (NYSE:BHP, ASX:BHP) $39 billion hostile takeover offer, citing the offer substantially undervalues Potash. It was also reported by Bloomberg today that Potash was approached by China’s Sinochem Group (SHA:600500) and Brazil’s Vale SA. Since the news release, Potash and BHP Billiton have advanced 1.55% and 0.06%, respectively, on the New York Stock Exchange.
Other market movers include The Washington Post Company (NYSE:WPO) and Commvault Systems (NASDAQ:CVLT ), each gaining 7.7% and 14.72%, respectively.
AMERCO (NASDAQ:UHAL) and Kronos Worldwide (NYSE:KRO) were two of the larger decliners, with both retreating approximately 6%.
Commodities
Crude oil plunged 1.26% to trade at $72.89 per barrel amid economic worries.
Gold declined 0.02% to trade at $1226.9 per ounce as the US dollar rose. Silver and copper gained 0.1% and 0.02% respectively.