TORONTO -- Canada's main stock index edged lower on Monday in cautious trading ahead of the end of the second quarter, as declines in the heavyweight resource and financial groups offset gains for consumer-related shares.

The Toronto Stock Exchange's S&P/TSX composite index fell 3.54 points, or 0.02 per cent, to 15,316.02. Trading volume was its lowest in three weeks.

"No one is going to stick their neck out given that it is quarter-end coming up on Friday," said Irwin Michael, portfolio manager at ABC Funds.

"People are a little nervous; little bit of concern out of the [United] States with regard to a flattening yield curve."

The spread between the U.S. two-year and 10-year yield has narrowed to 80 basis points, nearly its smallest gap since September. A flat yield curve could indicate that some investors see a recession ahead.

Gold miners were among the most influential decliners on the index as gold prices sank to near six-week lows. Agnico Eagle Mines Ltd (AEM.TO) slumped 1.3 per cent to $62.58, while Goldcorp Inc (G.TO) fell 1.2 per cent to $18.07.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.6 per cent, while gold futures fell 1.0 per cent to US$1,244.3 an ounce.

The energy group gave back 0.6 percent after rallying on Friday. Suncor Energy Inc (SU.TO) fell 1.2 per cent to $38.07 even as oil prices held above last week's seven-month lows.

U.S. crude oil futures settled 37 cents US higher at US$43.38 a barrel.

Financial stocks, which make up roughly a third of the index's weight, also fell, slipping 0.2 per cent as some of the country's top banks lost ground.

Of the index's 10 main groups five ended higher, including the consumer discretionary group, which rose 0.8 per cent and the consumer staples group, which rose nearly one per cent.

Shares of Alimentation Couche-Tard Inc (ATDb.TO) rose 3.6 per cent to $63.62. The company has won U.S. antitrust approval to buy rival CST Brands Inc (CST.N) on condition that it sell up to 71 gas stations in eight states, the Federal Trade Commission said.

Healthcare rallied 2.4 per cent, with Valeant Pharmaceuticals International Inc (VRX.TO) surging 8.0 per cent to $22.61, and reaching its highest since Jan. 10. Shares had jumped last week after billionaire investor John Paulson joined the company's board.

BlackBerry Ltd (BB.TO) rebounded 5.7 per cent to $13.59 after sharp losses on Friday following disappointing quarterly results.

U.S. MARKETS

The S&P 500 and the Dow barely rose on Monday as gains were offset by a fall in technology stocks, which pushed the Nasdaq lower as investors turned to more defensive sectors.

The slow-growing, high-dividend S&P utilities and telecommunications were the best performers among the 11 S&P sectors.

Technology was the weakest sector, with a 0.6 percent decline. The sector been under pressure recently due to stretched valuations.

"The bond market is signaling an economic slowing," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "That's why you're seeing defensive names like utilities do well, because equity investors are buying more in line with what that bond market is saying."

The Dow Jones Industrial Average rose 14.79 points, or 0.07 per cent, to 21,409.55, the S&P 500 lost 0.77 point, or 0.03 per cent, to 2,439.07 and the Nasdaq Composite dropped 18.10 points, or 0.29 per cent, to 6,247.15.

A fall in Microsoft, Amazon and Alphabet weighed most on the S&P 500, as well as on the Nasdaq.

"It's simply profit-taking going into the end of the quarter. I wouldn't be surprised at all to see that reversed in early July with the thought that we're going to see some strong earnings," said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.

The utilities sector was the S&P's best performer, with a 0.8-per-cent rise, while the four-company telecommunications services sector index was next with a 0.6-per-cent gain.

"If people are coming out of tech the money just rotates into the other sectors. There's not much driving the tape as there's not much news out there," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

The S&P energy ended 0.2 per cent lower as gains in oil prices were limited by rising crude supply in the United States and other countries.

A recent drop in oil prices has spurred concerns about low inflation, which remains below the Federal Reserve's two per cent target rate.

The Fed raised rates this month for the second time this year and has indicated it could raise them again. But futures imply only a 50-per-cent chance of another rate hike by December.

The S&P financial index rose 0.5 per cent after New York Fed President William Dudley and San Francisco Fed President John Williams generally brushed off weak data and stuck by their plans to keep hiking rates.

Monday's data showed new orders for U.S.-made capital goods unexpectedly fell in May, with non-defense orders excluding aircraft — a closely watched proxy for business spending plans — dropping 0.2 per cent.

Economists polled by Reuters had expected a rise of 0.3 per cent.

Shares in Hertz Global Holdings (HTZ.N) closed up 13.5 per cent at US$10.83 after a report that Apple Inc (AAPL.O) is leasing a small fleet of cars from the rental company to test self-driving technology. Apple shares ended 0.3 per cent lower.

Advancing issues outnumbered declining ones on the NYSE by a 1.88-to-1 ratio; on Nasdaq, a 1.19-to-1 ratio favored advancers.

About 6.42 billion shares changed hands on U.S. exchanges compared with the 7.2 billion average for the last 20 sessions.