Financial stocks led Toronto's main index into the green on Monday. The market challenged its highest levels in nearly 10 months.
The S&P/TSX Composite Index picked up 69.53 points, to 10,757.43, a level it hasn't seen since October 3 of last year.
Financials were up to lead the market higher. CIBC added 1.8% to $66.19 and Bank of Montreal was up 1.4% to $52.41.
On the downside, consumer staples stocks were down, as Saputo skidded 3.1% to $23.45, Loblaw slipped 1.5% to $34.52 and Shoppers Drug Mart dropped 0.8% to $43.80.
In corporate news, Addax Petroleum was 0.1% lower to $51.20 after the company announced second-quarter net income of $38 million U.S. or $0.24 U.S. per share, compared to $293 million U.S. or $1.83 U.S. per share in the prior-year period.
Cott Corp. plunged 22.1% to $6.47 after the company announced that its second-quarter net income was $33.7 million U.S. or $0.48 U.S. per share, compared to a net loss of $1.8 million U.S. or $0.03 U.S. per share in the year ago quarter.
Moto Goldmines Limited slipped 1.1% to $5.20 after the company confirmed that its board has determined the $244-million U.S. takeover offer from Randgold Resources Limited is superior to the current agreement between Moto and Red Back Mining. Red Back shares were up 0.9% to $10.09.
Centerra Gold jumped 7.3% to $6.65 after the company said that the Chairman of the Minerals Resources Authority of Mongolia has issued a decree reinstating the Boroo Mine's main operating licenses.
The Canadian dollar gained 0.16 cents to 92.51 cents U.S.
ON BAYSTREET
All but three of the 14 TSX subgroups were negative at the close, information technology and consumer staples slid the most sharply at 1.3%, followed by health-care, 1.2% to the bad.
The three gaining groups all but made up for the losses, though. Financials soared 2%, utilities gained 0.9% and global base metals picked up 0.6%.
The TSX Venture Exchange was up 3.09 points, to 1,147.04, while the Nasdaq Canada Index surged 10.51 points to 758.58
ON WALLSTREET
In New York, stocks ended higher Monday, at the end of a choppy session on Wall Street in which investors weighed better-than-expected results with some wariness after a two-week rally.
The Dow Jones Industrials poked higher 15.27 points to close at 9,108.51. The S&P 500 index moved 2.92 points higher to 982.18. The tech-rich Nasdaq composite picked up 1.93 points, to 1,967.89.
In the last two weeks, the Dow and S&P 500 have both gained more than 11% as investors welcomed better-than-expected results. After such an advance, stocks were mixed Monday.
Worries about the economy in the wake of a dour June jobs report dragged on stocks in early July, with investors betting that second-quarter results would disappoint, according to one expert. But the reports so far have been largely better than expected and stocks have rallied in response.
So far, reported earnings are beating expectations by 77% versus the long-term average of 61%, according to earnings tracker Thomson Reuters. But only a little more than one-third of the S&P 500 companies have reported so far. This week brings the biggest batch of corporate results yet, with 146 of the S&P 500 companies due to release results.
A better-than-expected new home sales report seemed to have little impact on the broad market, although it did lift housing stocks, with the Philly Housing index climbing 2%.
Monday brought a number of quarterly results, including Dow component Verizon Communications.
Verizon reported weaker earnings and stronger revenue, both of which were in line with estimates. But the telecom also said it was cutting 8,000 jobs in its wireline business, due to the impact of the recession.
Shares of the Dow component fell 2.3%.
Honeywell reported weaker earnings that met estimates and weaker revenue that missed estimates. The aerospace and transportation manufacturing giant also warned that 2009 earnings and sales will come in at the low end of its previous forecast. Shares were little changed.
RadioShack reported higher quarterly earnings that topped estimates, thanks to lower costs and better sales of netbooks, prepaid wireless handsets and digital televisions. However, investors took a "sell-on-the-news" approach, sending shares 6% lower.
Aetna said its profit slumped due to higher medical expenses. The health insurer reported weaker earnings that missed estimates on higher revenue that topped estimates. Aetna also cut its 2009 profit forecast. Shares fell 2%.
A variety of bank shares rose, including Wells Fargo and Dow component Bank of America. Regional banks surged too, including KeyCorp, Regions Financial and Fifth Third Bancorp.
New home sales in June rose to a 384,000-unit annual rate from a revised 346,000 unit annual rate in May. Economists surveyed by Briefing.com expected 352,000. However, sales fell 28% versus a year ago.
Later this week, investors get the initial reading on second-quarter GDP growth
Treasury prices remained lower, boosting the yield on the benchmark 10-year note to 3.72%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil regained 33 cents to $68.29 U.S.
Gold prices were flat at $956 U.S. an ounce.
