Canadian stocks are likely headed lower for a fourth time in five sessions on Monday, following the lead of markets in the U.S., Europe and Asia. Stocks are down on news that U.S. auto giants will not be receiving more government funds until they step up their efforts to reorganize.
The Obama administration will continue to provide operating funds for the next few weeks, but it has given both GM and Chrysler a final deadline, threatening bankruptcy if the beleaguered auto giants do not significantly increase their efforts to restructure their business.
At the request of the White House, Rick Wagoner is stepping down as chairman and CEO of General Motors (GM), with Fritz Henderson, GM president and chief operating officer, to replace Wagoner as CEO.
In corporate news Monday, FNX Mining Co. Inc. (FNX.TO: News ) reported fourth-quarter net loss of C$397.40 million, or C$4.68 per share, compared with a profit of C$32.28 million, or C$0.38 per share, last year.
MethylGene Inc. (MYG.TO) reported fourth quarter net income of C$7.0 million or C$0.19 per share, compared to a net loss of C$7.0 million or C$0.20 per share last year.
Northstar Healthcare Inc. (NHC.TO: News ) reported fourth-quarter net loss of US$75.8 million, compared to net profit of US$1.5 million last year.
JumpTV Inc. (JTV.TO) reported fourth-quarter net loss of US$7.2 million or US$0.13 per share, compared to net loss of US$0.2 million or breakeven per share last year.
Weakness in the energy sector dragged Toronto's main index nearly 2% lower on Friday. The index finished lower for the third time in four sessions. The S&P/TSX Composite Index fell 174.44 points or 1.93% to end at 8,821/06. The drop took the market away from a 6 1/2 week high from the previous session.
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