TORONTO - The sliding price of crude oil brought the Toronto stock market to a lower finish on Monday in what was otherwise a quiet trading session ahead of the U.S. elections.
Wall Street investors appeared to stay on the sidelines and avoid making any major moves, which left New York markets relatively flat on the day, despite dismal U.S. auto sales data and a weak reading on the manufacturing sector.
Toronto's S&P/TSX composite index slipped 41.50 points to 9,721.26 on the first trading day of November, with weakening oil prices pulling the market lower.
The TSX energy sector was 3.7 per cent lower as the December crude contract fell nearly six per cent, or $3.90, to US$63.91 a barrel on the New York Mercantile Exchange.
The Canadian dollar was up 1.66 of a cent to 84.68 cents US after the Conference Board of Canada lowered its outlook for the economy next year, saying that it now expects the economy to grow by a sluggish 1.5 per cent in 2009 -- but avoid a recession.
The gold sector dropped 1.95 per cent as the price of the December bullion contract gained $8.60 to $726.80.
The TSX Venture Exchange moved up 20.29 points to 935.59.
In economic news, the struggling Ontario economy will receive a $347-million payout from the federal government starting in March as part of a program intended to transfer wealth to Canada's "have-not" provinces.
Politics overhangs the markets, with investors uncertain ahead of Tuesday's American election.
In New York, the markets ended relatively flat with the Dow Jones industrial average 5.18 points lower to 9,319.83 before the election on Tuesday.
The Nasdaq composite index rose 5.38 points to 1,726.33 while the S&P 500 dropped 2.45 points to 966.30.
Analysts say Wall Street has no strong preference between the candidates but wants to get past the uncertainty.
"I think people are taking a wait-and-see attitude," said Chyanne Fyckes, chief investment manager at Stone Asset Management.
"The one thing the market doesn't like is uncertainty. Anything is possible in elections, particularly in the states because it always seems to be very tight."
Auto sales numbers were released on both sides of the border, and offered a different perspective about the respective markets.
In Canada, sales of cars and light trucks Canada rose to 122,711 vehicles in October -- up 1.5 per cent over the same month of 2007, according to DesRosiers Automotive Consultants.
South of the border major auto companies reported weak sales for the month of October. Ford Motor Co. said its U.S. auto sales plummeted 30 per cent, while Toyota Motor Corp.'s dropped 23 per cent as low consumer confidence and tight credit combined to scare customers away from showrooms.
In other U.S. data, the Institute for Supply Management, a U.S. trade group, reported that its index of manufacturing activity fell to 38.9 in October from 43.5 in September, clocking its lowest reading since September 1982.
A separate report showed U.S. construction spending declined at a slower than expected rate in September as a rebound in non-residential activity helped offset further weakness in home building.
Stephen Massocca, co-chief executive of Pacific Growth Equities, said the economic readings weren't a surprise given the hits the economy has taken from the evaporation of lending since September. He said Wall Street's tepid reaction also reflects the market's process of forming a bottom after its selloff. Investors are also waiting to make big bets until after the election, he said.
"What we've seen was a rally last week taking a dire depression off the table, and I think now what we have is a severe recession," he said.
In Canadian earnings news, silver miner Silver Wheaton Corp. (TSX:SLW) recorded a profit of US$20.2 million, or nine cents a share, in the third quarter. Its shares rose 13 cents to $4.33.
Teranet Income Fund (TSX:TF.UN) reported its third-quarter results early Monday in a preview for stockholders, saying that adjusted earnings before income tax, depreciation and amortization rose 4.3 per cent in the quarter to $55.5 million from a year-earlier $53.3 million. Units lost a penny to $9.49.
The board of InStorage Real Estate Investment Trust (TSX:IS.UN) has recommended rejection of a $91-million takeover bid from a unit of the TKG-StorageMart group of Columbia, Mo. The REIT's units edged up five cents to $3.60.
Canadian National Railway Co. (TSX:CNR) is buying a number of rail and ferry operations from Quebec Railway Corp. for $49.8 million. CN shares rose 43 cents to $51.89.
Commercial printer Transcontinental Inc. (TSX:TCL.A) will shut down a Pennsylvania plant and take big charges against earnings as the financial crisis eats into its U.S. direct-mail business. Shares rose 32 cents to $12.52.
Circuit City Stores Inc. is closing 155 of its U.S. stores, about 20 per cent, in an effort to return America's No. 2 consumer electronics retailer to profitability. No Canadian stores are affected.
