Markets in Toronto looked forward to some traction on Tuesday as investors awaited U.S. Federal Reserve Chairman Ben Bernanke's testimony to Congress on Wednesday.
The S&P/TSX Composite Index gained 66.18 points to finish Monday at 12,528.35, with futures up 0.4% Tuesday.
The Canadian dollar recovered 0.21 cents to 96.11 cents U.S. early Tuesday
CIBC raised the target price on Loblaw Companies to $53 from $48, saying the company is just getting its core business under control before heading into a more competitive second half.
RBC cut the rating on Mercer International to sector perform from outperform, saying it sees limited momentum in global pulp markets and few catalysts for the company's shares over the next 12 months.
RBC cut the rating on Tembec to sector perform from outperform on rising concerns with the company's increased debt.
On the economic slate, Statistics Canada reported that manufacturing sales hiked 0.7% to $48.6 billion in May, the second gain in five months.
ON BAYSTREET
The TSX Venture Exchange subtracted 1.69 points Monday to 896.73
ON WALLSTREET
U.S. stocks were expected to hold steady at Tuesday's open as investors wait for the latest corporate results and guidance from Federal Reserve Chairman Ben Bernanke due later this week.
Futures for the Dow Industrials dropped four points to 15,412. Futures for the S&P 500 slid 0.3 points to 1,677.20, and futures for the NASDAQ gained 2.5 points to 3,075.50
On Wednesday, Bernanke will deliver his semi-annual testimony to Congress on monetary policy.
Coca-Cola shares slipped 2% in pre-market trading after the company reported a drop in profit from a year earlier.
Goldman Sachs shares notched up 1.5% after the Wall Street firm said that its quarterly earnings doubled from a year earlier, with a boost from investment banking.
Johnson & Johnson shares were flat after the healthcare company announced a jump in quarterly sales but a decline in earnings. Yahoo will report its second-quarter results after the market close.
Cintas was down in after-hours trading after narrowly missing analyst expectations for its fourth quarter earnings.
In economic news, the U.S. Bureau of Labor Statistics will publish the latest Consumer Price Index, the government's key measure of inflation.
On the international front, European markets were mixed in morning trading.
Asian markets ended mostly higher. The Shanghai Composite index added 0.3%, Tokyo's Nikkei 225 jumped up by 0.6% after returning from a long weekend, and Hong Kong's Hang Seng index was flat.
Oil prices added 62 cents to $106.94 U.S. a barrel
Gold prices gained $8.10 to $1,291.60 U.S. an ounce.
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