The Toronto stock market was slightly higher Monday afternoon, building on last week's strong gains amid a major corporate development in the consumer sector and growing confidence that the TSX has turned a corner and is on the way to a positive year.
The S&P/TSX composite index grew 50.44 points to end Monday at 13,186.53
The Canadian dollar faded 0.10 cents to 97.08 cents U.S.
Maple Leaf Foods is looking at the possibility of selling its bakery business, which includes a 90% interest in Canada Bread, maker of Dempster's and other brands.
Based on recent stock market values, Canada Bread had a value of about $1.6 billion prior to the announcement Monday. Maple Leaf shares jumped $1.34, or 10.1%, to $14.64 while Canada Bread shares surged $4.78, or 7.8%, to $66.03.
The gold sector advanced while Barrick Gold Corp. rose 37 cents to $19.44.
The base metals sector rose as December copper lost early momentum and was unchanged at $3.30 U.S. a pound. HudBay Minerals was ahead 20 cents to $8.51.
The energy sector declined and Canadian Natural Resources gave back 41 cents to $33.37.
Financials also provided lift with CIBC ahead $1.36 to $85.34.
Techs led decliners while BlackBerry shed 16 cents to $8.48.
It is also a heavy earnings week for Canadian companies, particularly those in the resource sector and with companies related to that group, including the country's two big railways.
Canadian National Railways posts earnings Tuesday and Canadian Pacific Railway reports on Wednesday and both are expected to show rising revenues from greater shipments of crude oil. CN shares docked 13 cents to $109.71, while CP shares fell $1.38 to $133.99.
On the economic beat, Statistics Canada said the wholesale trade rose 0.5% to $49.8 billion in August, the fourth increase in five months, mostly due to gains in the motor vehicle industry. Market call was for a rise of 0.3%.
ON BAYSTREET
The TSX Venture Exchange gained 8.85 points to 959.82
Nine of the 14 Toronto subgroups ended the day in the green, led by gold, up 1.9%, while materials and the metals and mining groups each put on 1.2%
The five laggards were weighed by health-care and real-estate stocks, each dipping 0.6%, while information technology stocks sank 0.5%.
ON WALLSTREET
After last week's big rally, investors were taking a more cautious approach Monday as they look for clarity about the economy and corporate earnings.
The Dow Jones Industrials finished 7.45 points shy of breakeven to 15,392.20
The S&P 500 index dropped 0.51 points to 1,743.99. The NASDAQ picked up 5.77 points to 3,920.05
Investors jumped back into the market last week after the U.S. government reopened and lawmakers ended a budget showdown that threatened the nation's credit rating.
McDonald's shares fell after the fast food chain reported earnings that met expectations, but global sales growth was tepid. Halliburton shares fell after the oil field services company's earnings met expectations.
AT&T shares gained after the company announced over the weekend that it had inked a $4.8-billion U.S. lease deal with Crown Castle International Corp.
GE was also a top performer after the company reported solid results Friday.
Netflix shares jumped ahead of the company's quarterly report, due after the market closes.
Shares of JPMorgan Chase were little changed following news over the weekend that the bank and the Department of Justice have tentatively agreed to a $13-billion U.S. civil settlement to resolve several investigations into the bank's mortgage securities business.
Despite the record fine, the settlement would be a positive for the stock since it means JPMorgan can finally move beyond its legal woes, according to analysts at Biard Equity Research. The analysts said JPMorgan trades at a roughly 15% discount to rival large-cap banks such as Bank of America and Citigroup
Apple shares gained one day before the company is expected to reveal its first revamped iPad in a year. Apple, which reports earnings next week, was also upgraded to "buy" by analysts at Societe Generale.
On the economic front, the National Association of Realtors said existing home sales fell 1.9% in September. The group said rising interest rates and the fallout from the government shutdown will weigh on the housing market in the months ahead.
Prices for the 10-year U.S. Treasury sagged, lifting yields to 2.61% from Friday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices lost $1.68 to $99.13 U.S. a barrel.
Gold prices dipped 40 cents to $1,314.20 U.S. an ounce.
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