RIM leads TSX lower

Canadian stocks turned lower in early trading on Monday, extending a recently seen slide. Tech stocks are leading the decline following an analyst downgrade for Research in Motion

Soon after the opening bell, the S&P/TSX composite index had lost 61.53 points to 10,849.22.
Technology stocks are down, as RIM lost 5% after seeing its rating cut to "sell" from "buy" at Citigroup.

Gold stocks are up as the precious metal has moved above $1,050 U.S. per ounce on the Comex. Agnico-Eagle Mines gained 1.5% and Royal Gold was up 1.2%.


The Canadian dollar gained 0.50 cents to 92.70 cents U.S.

ON BAYSTREET

All but three of the 14 TSX subgroups were in negative territory to start the day, week and month.

Information technology weighed the losers, down 1.7%, metals and mining stocks were off 1%, and consumer discretionaries were down 0.9%.

Gold led the winners, up 0.6%, global base metals were ahead 0.5% and utilities gained 0.1%.

The TSX Venture Exchange was up 4.62 points to 1,296.03, while the Nasdaq Canada index faded 18.48 points to 613.61.

ON WALLSTREET

In New York, stocks rebounded at Monday's open, following a big selloff that ended last week, and after Ford posted its first quarterly profit in more than a year.

The Dow Jones Industrials had picked up 22.90 points to 9.735.63. The S&P 500 index eked out a gain of 1.96 points to 1,038.15. The Nasdaq composite index let go of 8.67 points to 2,036.44.

Stocks tumbled Friday on worries that the market was due for a correction, bringing Wall Street's seven-month winning streak to a halt in October. The Dow lost nearly 250 points, or 2.5%, the biggest one-day selloff on a point basis since April 20.

Ford Motor delivered its first quarterly profit in more than a year Monday, helped by the government's Cash for Clunkers program.

The company said it earned nearly $1 billion U.S., or 29 cents U.S. a share. The automaker was expected to post a loss of 12 cents U.S. a share, according to Thomson Reuters estimates.

Ford shares rose 11% in early trading Monday.

On the economic front, investors were to look to a reading on construction spending as well as a report on pending home sales at 10 a.m. ET. Economists surveyed by Briefing.com are anticipating a 0.5% decline in construction spending and 1.2% increase in home sales.

Also due out is a survey of nationwide manufacturing activity, which is expected to show modest growth, according to estimates.

Small business lender CIT filed the fifth-largest U.S. bankruptcy on Sunday as part of a reorganization plan that has the support of most of the company's debtholders.

CIT said it has already worked out a reorganization plan with bondholders that it expects to speed the Chapter 11 process and reduce CIT's debt by $10 billion U.S.

Treasury prices were down sharply, raising the yields for the benchmark 10-year note to 3.43% from Friday's 3.39%. Prices and yields move in opposite directions.

The price of a barrel of oil picked up 31 cents to $77.33 U.S.

Gold prices dropped $7 to $1,031 U.S. an ounce.