Strong earnings from Kraft Foods Inc. and Verizon Communications Inc. were not enough to offset nervousness among investors over rising energy costs and the health of U.S. banks on Monday.
The Dow Jones industrial average fell 46 points, to 11,325. The broader S&P 500 fell 2 points, to 1255. In Canada, the commodity-heavy S&P/TSX composite index rose 35 points, to 13,413.
Crude oil rose to $124.47 (U.S.) a barrel, up $1.21, which helped drive the shares of Canadian energy producers higher. Suncor Energy Inc. rose 2.5 per cent and Talisman Energy Inc. rose 1.9 per cent.
Kraft rose 2.1 per cent in early trading after the food maker produced better than expected earnings prior to the start of trading, and helped boost some confidence among investors that companies can successfully pass along price increases to consumers after being faced with surging input costs.
Verizon hasn't been greeted with as much enthusiasm though. The communications giant also topped expectations with its second quarter results after it announced a 12 per cent increase in its net earnings thanks to strong gains in its wireless division. However, its shares slumped 3 per cent in early trading.
Meanwhile, financials were mixed as investors gauged the effectiveness of the U.S. government's attempt to put a brake on the surging number of foreclosures in the housing market, and their impact on financial firms. In the United States, Fannie Mae rose 6.5 per cent, Citigroup Inc. fell 1.4 per cent and JPMorgan Chase & Co. rose 1.6 per cent. In Canada, Royal Bank of Canada fell 0.9 per cent and Toronto-Dominion Bank rose 0.5 per cent.
