RTTNews - Toronto stocks could head lower on Tuesday morning after back-to-back sessions with modest gains as volume is expected to return to normal as U.S. traders get back to work. Lower commodity prices could drive resource stocks lower.
Crude oil has dropped more than 2% and touched below $60 per barrel on the NYMEX. Gold is down more than 1% and copper has down about 1.4%.
Earnings will take center-stage in the financial sector this week. Bank of Montreal (BMO.TO) reported second-quarter adjusted net income of C$518 million or $0.91 per share, compared with C$614 million or $1.19 per share a year ago.
In other corporate news, Denison Mines Corp. (DML.TO) announced that it has entered into an agreement with a syndicate of investment dealers which have agreed to purchase, on a bought deal basis, 40 million common shares of Denison at a purchase price of C$2.05 per common share, for aggregate gross proceeds in the amount of C$82.0 million.
Biovail Corp. (BVF.TO) announced the settlement of proxy contest with founder and former chief executive officer Eugene Melnyk in connection with the annual and special meeting of shareholders to be held on May 28. Biovail said Melnyk agreed to attend the shareholders' meeting in person or by proxy for quorum purposes and to vote the 16.42 million common shares held by him and his holding company EM Holdings B.V. in favor of company's nominees and in favour of all other matters proposed by company.
Meanwhile, Canadian Auto Workers members voted in favor of a new cost-cutting deal with General Motors Corp. (GM) a key condition for the automaker to receive billions in government loans from Canada and Ontario.
On the economic front, Statistics Canada reported employment insurance claims rose 10.6% to 65,300 in March.
On Monday, the S&P/TSX Composite Index ended the day up 76.08 points or 0.76% at 10,069.50 points. Trading was far less than usual with U.S. traders away from their desks on Memorial Day.
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