The Toronto Stock Exchange Broadcast Centre is shown on June 28, 2013. THE CANADIAN PRESS/Aaron Vincent ElkaimThe Canadian Press
North American stock markets were lower in early trading Tuesday.
The S&P/TSX composite index fell 65.97 points to 14,842.42 shortly after the open.
Meanwhile, the loonie traded at 78.59 cents U.S., down 0.19 of a U.S. cent.
The Canadian dollar was slightly better than before the release of Canadian gross domestic product data for January.
The Canadian economy took a step back in January, but the 0.1-per-cent decline in gross domestic product was a slightly better result than economists had expected.
Economists had estimated the Canadian economy would shrink by 0.2 per cent during the month after rising 0.3 per cent in December, according to Thomson Reuters.
Statistics Canada said that January's overall production of goods was up 0.3 per cent, helped by an increase in oil and gas extraction, utilities and the agriculture and forestry sector.
The gains were partly offset by a drop in manufacturing and, to a lesser extent, construction.
On the commodity markets, the May crude oil contract was down 66 cents at US$48.02 a barrel, while the June gold bullion contract was up $1.30 at US$1,186.70 an ounce.
The Dow Jones industrial Average fell 95.82 points to 17,880.49, while the Nasdaq dropped 21.96 points at 4,925.48. The S&P 500 index lost 9.02 points to 2,077.22.
Despite the decline, the major indexes remained on track for a positive first quarter and the S&P 500 was set for its ninth straight quarterly rise.
Energy shares will be in focus as crude oil fell 1.4 per cent, sending the S&P Energy index down 1 per cent and Exxon Mobil Corp down 1.1 per cent to $84.73. Oil is set for its third straight daily decline, losing about 7 per cent over that period.
Oil was pressured as Iran and six world powers entered a final day of talks on a nuclear deal that could see the energy-rich country increase oil exports. The talks come at a time when oversupply is already a major concern for energy investors, having contributed to crude falling more than 50 per cent from a high in June.
Endurance Specialty Holdings agreed to buy reinsurer Montpelier Re Holdings for about $1.83-billion (U.S.), while Charter Communications agreed to acquire Bright House Networks in a deal worth roughly $10-billion deal.
The news follows a number of big deals announced on Monday, all of which contributed to the market's broad advance and the Dow's biggest one-day rise in more than a month. Charter rose 8.3 per cent to $198.66 while Montpelier rose 3 per cent to $39.31. Endurance fell 2 per cent to $63.02.
"Today's move is largely in reaction to yesterday, a back-to-normal session, but our view on the market is still constructive. As we see continued acquisition deals, that will be supportive for the backdrop," said James Dunigan, chief investment officer at PNC Wealth Management in Philadelphia.
Trading may be volatile ahead of the March payroll report, due on Friday, when the stock market is closed for the Good Friday holiday. If the report is strong, investors could view the U.S. Federal Reserve as more likely to raise rates earlier than currently expected.
Tuesday marks the end of the first quarter. Over the period, the Dow rose 0.5 per cent, the S&P 500 rose 0.9 per cent and the Nasdaq rose 4 per cent. This is the ninth straight quarterly advance for the S&P and Nasdaq, the longest such streak for the S&P since 1998 and the longest for the Nasdaq in its history.
With files from Reuters