The Toronto stock market jumped soon after the opening bell Tuesday, albeit amid low late-summer volumes and ahead of a key speech by the chairman of the U.S. Federal Reserve on Friday.
The S&P/TSX Composite index began the day up 14.38 points to 12,063.20
The Canadian dollar strengthened 0.64 cents to 101.57 cents U.S.
The financial sector supplied some lift after Bank of Montreal and Scotiabank released quarterly earnings that beat expectations.
BMO posted net income of $970 million or $1.42 per share, up 37% from a year ago. On an adjusted basis, the bank’s earnings were $1.49 per share, beating analyst expectations by 10 cents. BMO also increased its dividend by two cents to 72 cents a share. BMO shares soared 56 cents, or nearly 1%, to $58.26
Scotiabank’s quarterly profits grew by 57% to $2.05 billion or $1.69 a share, three cents higher than expectations. The bank also said it is raising its quarterly dividend by two cents to 57 cents per share.
The Scotiabank results were helped by an after-tax gain of $614 million from the sale of its headquarters in Toronto’s financial district. Scotiabank shares dipped nine cents, however, to $52.85.
ON BAYSTREET
The TSX Venture Exchange faded 0.98 points to 1,245.84. The Nasdaq Canada gained 0.71 points to 348.64
Seven of the 14 Toronto subgroups were lower at the outset, as health-care stocks were 1% less robust, utilities slid 0.2%, and consumer discretionaries were off 0.1%.
The half-dozen gainers were led by financials, up 0.6%, consumer staples, adding 0.4%, and gold, shining 0.2% brighter. Information technology issues were unchanged early Tuesday.
ON WALLSTREET
U.S. stocks were little changed Tuesday, in what's expected to be yet another quiet day on Wall Street.
The Dow Jones industrial average gained 14.64 points at the outset to 13,139.31
The S&P 500 index took on 1.62 points to 1,412.06, while the tech-heavy Nasdaq Composite Index was positive by 5.08 points to 3,078.27
Shares of the luxury watchmaker Movado Group Inc shot up 18% after it reported better-than-expected earnings Tuesday. The company also revised its outlook upward for the rest of the year.
H.J. Heinz Co chief executive officer William Johnson said the food company expects to report strong first-quarter results Wednesday, sending its shares nearly 2% higher in early trading.
Best Buy shares rose following the electronic retailer's announcement that it will give its founder, Richard Schulze, the chance to take a closer look at its financial statements as he finalizes a takeover proposal.
With little on the economic or corporate front, most investors are just waiting to hear what Fed Chairman Ben Bernanke has to say when he speaks Friday in Jackson Hole, Wyo. Investors are hopeful that he will announce further action to ease growing concerns about a U.S. economic slowdown.
Meanwhile, investors are keeping tabs on oil prices, which crept up 58 cents Tuesday morning to $96.02 U.S. a barrel, as Tropical Storm Isaac curtailed oil production along the Gulf of Mexico.
The national average price for a gallon of regular gas continues to increase, hitting $3.76 U.S. Tuesday, according to AAA.
Experts say that prices could shoot up another 10 cents fairly quickly, depending upon the extent and duration of the refinery shutdowns.
Economically speaking, the S&P/Case-Shiller national home price index, which covers more than 80% of the housing market in the United States, rang up a 6.9% gain in the three months ended June 30 compared with the first three months of 2012. Analysts expected the number to have decreased by 0.3%,
The report indicates that the sharp boost in home prices could signal a recovery in the long-suffering U.S. housing market.
The Conference Board's Consumer Confidence Index for August, due later this morning, is expected to come in at 65.7, down from 65.9 in July.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.64% from 1.65% late Monday. Treasury prices and yields move in opposite directions.
Gold futures for December delivery fell $8 to $1,667.60 U.S. an ounce.
