Markets in Toronto opened marginally higher on Tuesday, stimulated by positive U.S. economic data and a solid start to the second-quarter U.S. earnings season.
The S&P/TSX Composite Index gained 10.37 points to begin trading Tuesday at 12,219.24
The Canadian dollar picked up 0.22 cents to 94.94 cents U.S.
Jean Coutu Group's first-quarter profit fell 77%, mainly due to lower generic drug prices. Shares in the chain slipped 65 cents, or more than 3%, to $17.16.
CIBC cut the rating on Canadian National Railway to sector performer from outperform, expecting greater head count reduction and lower operating ratio for both years. CN shares dipped 20 cents to $102.53
The bank also cut the price target on Pason Systems Inc. to $17.50 from $18.50 as Pason received an unfavourable judgment in relation to its Canadian patent infringement lawsuit. Pason shares retreated 22 cents to $19.00
Canaccord Genuity starts coverage on TriOil Resources with a hold rating, says the company has done an excellent job of developing its two key resource plays. TriOil shares stepped back three cents to $2.59.
Speaking of things economic, Canada Mortgage and Housing Corporation reported that housing starts fell in June from May, but less than expected.
The seasonally adjusted annualized rate of housing starts was 199,586 units in June, a decrease from May, which was revised higher to 204,616. Analysts polled by Reuters had expected 187,000 starts in June.
ON BAYSTREET
The TSX Venture Exchange edged higher 0.31 points to 873.60
Eight of the 14 Toronto subgroups were higher at the outset, led by gold, up 2.6%, metals and mining, up 2.5%, and materials, improving 2.2%.
The half-dozen laggards were weighed mostly by consumer staples, down 1.4%, information technology, off 0.9%, and health-care, sliding 0.8%.
ON WALLSTREET
Investors pushed stocks higher early Tuesday after a positive start to earnings season gave global markets a tailwind.
The Dow Jones Industrials gained 48.65 points to 15,273.30
The S&P 500 index progressed 5.47 points to 1,645.93. The NASDAQ Composite inched up 2.48 points to 3,487.31
After Monday's close, Alcoa became the first Dow component to report second-quarter results, topping analysts' forecasts.
Alcoa's results combined with lingering sentiment from last week's better-than-expected jobs report helped support stocks, said Anthony Conroy, head trader at BNY ConvergEx Group.
Firms including Yum! Brand, JPMorgan andWells Fargo are set to report quarterly results later this week.
Overall, earnings for companies in the S&P 500 are expected to grow 0.8% versus last year, according to FactSet.
Tesla Motors is joining the NASDAQ-100 and replacing software company Oracle. The electric car maker's stock rose 3% to trade above $125 U.S. That's more than four times what the stock was worth at the beginning of the year.
Barnes & Noble shares sank after the book retailer announced that CEO William Lynch was resigning.
Shares of Intuitive Surgical Inc. plunged after the surgical robotics company pre-announced results that disappointed investors.
NYSE Euronext won a contact to take over Libor, the London interbank offered rate that has been at the epicentre of a wide-ranging bid rigging scandal.
The International Monetary Fund cut its world economic growth forecast for the third time this year due to slowing emerging markets and a prolonged recession in the euro-zone.
In an update to its World Economic Outlook, the IMF said Tuesday that it now expects world output to expand by just 3.1% in 2013, down from 3.3% in April. In January, it was forecasting growth of 3.5%.
Prices for the 10-year U.S. Treasury inched up, dropping yields to 2.63% from Monday’s 2.64%. Treasury prices and yields move in opposite directions.
Oil prices fell 41 cents to $102.73 U.S. a barrel.
Gold prices recovered $18.10 to $1,253 U.S. an ounce.
