National Post (National Edition)
TSX ends flat on RIM profit-taking
The Toronto stock market closed little changed Monday, held back by a wave of profit-taking on Research In Motion Ltd. (RIM/TSX) shares while mining and energy stocks failed to benefit from rising commodity prices.
The S&P/TSX composite index dipped 0.71 of a point to 12,815.91, while the TSX Venture Exchange fell 9.36 points at 1,217.88.
U.S. indexes lost early momentum as a disappointing housing sector report competed with a well received earnings report from heavy equipment maker Caterpillar Inc. and data showing higher than expected durable goods orders in December.
The Dow Jones industrials gave back 14.05 point to 13,881.93 as the National Association of Realtors said its seasonally adjusted index for pending home sales dropped 4.3% to 101.7 in December.
The Nasdaq gained 4.59 points to 3,154.3 and the S&P 500 index was 2.78 points lower at 1,500.18.
U.S. durable goods orders rose by a greater than expected 4.6% in December. That was more than double the consensus forecast for a 2% gain.
The lacklustre performance on North American markets on Monday followed solid gains through most of January.
“The markets are probably a little ahead of themselves, capturing the relief that we didn’t have great protracted political battles in the U.S.,” said Chris King, portfolio manager at Morgan, Meighen and Associates, referring to the so-called fiscal cliff and raising the U.S. debt ceiling.
“All the while, we know that the U.S. economy is improving [and] China is turning around. And what is most encouraging, we’re seeing fund flows back into equities like we haven’t seen going back more than a decade.”