Canada's main stock index registered higher on Tuesday as U.S. retail sales rose for the first time in four months, buoyed by an uptick in consumer spending that could spur economic growth.
The S&P/TSX Composite index moved up 52.11 points over noon hour ET to 11,890.44
The Canadian dollar inched up 0.11 cents to 100.86 cents U.S.
Most of the index's main sectors pushed higher, with the information technology sector lagging as Research In Motion weighed heavily, down 3.6% at $7.73.
Smartphone market data released by Gartner showed the BlackBerry maker's competitive position had eroded further.
Materials companies also had a negative overall effect on the index.
But declines were offset by strong performances from some of the index's biggest hitters, including Royal Bank of Canada, up 1.4% to $51.63, and Canadian Natural Resources Inc, which added 1.9% to $30.72.
ON BAYSTREET
The TSX Venture Exchange stepped back 1.63 points to 1,195.74. The Nasdaq Canada fell 1.68 points to 346.58.
Nine of the 14 Toronto subgroups were still in the green by lunch hour, led by financials and energy stocks, each sector up 0.8%, and health-care, ahead 0.7%.
The five laggards were weighed mostly by metals and mining stocks, down 1.2%, while information technology stocks faded 0.8%, and global base metals lost 0.6%.
ON WALLSTREET
U.S. stocks were modestly higher Tuesday as investors welcomed encouraging data on the U.S. economy and from the euro-zone.
The Dow Jones industrial average stayed ahead 22.30 points by midday to 13,191.73.
The S&P 500 gained 2.41 points to 1,406.52. The Nasdaq slid 0.26 points to 3,022.26.
Investors were heartened after a government report showed that U.S. retail sales rose for the first time in four months in July, a sign that the economy may have started strengthening in the middle of the summer.
Home Depot shares rose sharply, leading the gains on the Dow. The home improvement retailer's second-quarter earnings topped expectations, though revenue fell short of estimates.
Estee Lauder Companies Inc. shares shot up 10%, making them the top gainer in the S&P 500. The company reported better-than-expected quarterly results.
Shares of Saks were also higher on strong earnings.
Michael Kors shares jumped after the luxury retailer posted earnings that tripled from a year ago and trounced forecasts.
TJX shares edged higher after the company beat earnings expectations by a penny.
Groupon shares dove after the company beat earnings estimates but missed on revenue.
France and Germany released second-quarter gross domestic product figures that beat analysts' expectations, but preliminary data showed the euro-zone economy on the whole continued to shrink.
Euro-zone GDP shrank by 0.2% between April to June compared to the previous quarter and 0.4% year-over-year, according to flash estimates published by Eurostat, the statistical office of the European Union. In the first quarter of 2012, GDP was unchanged.
While the data came in higher than forecasts, economists say that the numbers still point to a gloomy picture, leaving concerns about the euro-zone crisis intact.
On the economic ledger, retail sales in the U.S. climbed for the first time in four months, up 0.8% in July, the Census Bureau reported Tuesday. Economists had expected a 0.2% increase.
Producer prices also beat estimates, increasing 0.3%, according to the U.S. Bureau of Labor Statistics. Prices were expected to rise by 0.2%.
Business inventories rose 0.1% in June, slightly slower than the 0.2% rise were looking for.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.73% from Monday’s 1.65%. Treasury prices and yields move in opposite directions.
Oil for September delivery strengthened 51 cents to $93.24 U.S. a barrel.
Gold futures for December delivery fell $7 to $1,605.30 U.S. an ounce.
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