Canadian shares retreated, led by the three major heavyweight segments, as investors continue to digest Friday’s U.S. employment data and as oil prices drop.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.2 percent to 15,143 at 12:39 p.m. in Toronto. Two shares declined for every stock that advanced as seven out of ten share groups were in the negative territory.
Data on Friday showed growth in U.S. employment rebounded in April, signaling the economy was picking up after a sluggish first quarter. Investors have been analyzing the data to determine when the Federal Reserve might raise interest rates next, with many still betting on a hike sometime later this year. Sentiment in Canada is often influenced by news out of the United States, Canada's largest trading partner.
The energy sector, the main index's second most heavily weighted group, tumbled 1.1 percent as oil, Canada’s largest export, as oil futures held ground below $60 a barrel.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, dropped 0.2 percent to C$36.70. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, skidded 0.3 percent to C$38.11.
Emera (TSE:EMA), an energy and services company, rose 2.3 percent to C$42.02 after saying its first-quarter earnings fell to C$1.10 a share from C$1.43 a year earlier and revenue fell about 14 percent. Adjusted earnings improved to C$1.18 a share from C$1.03 and came in ahead of analyst expectations for 79 Canadian cents.
High Arctic Energy Services (TSE:HWO) gained 2.8 percent to C$4.37 after saying first-quarter earnings fell to C$0.09 per share from C$0.18, while revenue held steady at C$44.7 million.
June crude was last down 0.2 percent at $59.27 a barrel on the New York Mercantile Exchange, while Brent crude on London’s ICE Futures exchange was off 0.9 percent at $64.80 a barrel.
The materials sub-index, which includes mining shares, dropped 0.2 percent as gold futures held ground near $1,190 an ounce. Goldcorp (TSE:G), Canada’s largest gold miner by market value, slumped 1.1 percent to $22.42. Barrick Gold (TSE:ABX), the second-largest, added 0.5 percent to C$15.46.
Gold for June delivery on Comex fell 10 cents to $1,188.80 an ounce.
Financials, the index's most heavily weighted sector, slipped 0.2 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, gave up 0.2 percent to C$78.97. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, skidded 0.2 percent to C$55.49.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) rose 0.3 percent to $692.90 at 12:38 p.m. in Toronto.
In the U.S. market, shares seesawed as a drop in energy shares overshadowed gains in small-cap companies. The S&P 500 (INDEXSP:.INX) slid 0.1 percent to 2,113 at 11:40 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) slipped 0.1 percent to 18,166, and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) added 0.1 percent to 5,007. Most followed shares included Noble Energy, Rosetta Resources, GlaxoSmithKline, Zulily, Actavis, Salesforce, Noble Energy, Dish Network, Sotheby’s, Dean Foods, FXCM, Wayfair, Hilton Worldwide, United Continental