The Toronto stock market was slightly lower Tuesday, weighed down by an earnings report from industrial heavyweight Canadian National Railways
However, mining stocks got a lift after China's leadership indicated it would take measures to support the economy.
The S&P/TSX Composite Index ended Tuesday down 13 points to 12,745.38
The Canadian dollar gained 0.47 cents to 97.24 cents U.S.
Canadian National Railway depressed the TSX even as the railroad handed in quarterly earnings that beat expectations following the close Monday. The stock lost $3.32, or 3.2%, to $101.74.
CN earned $717 million or $1.69 per diluted share, up from $631 million or $1.44 per diluted share a year ago. Ex-items, CN earned $1.66 per share, up from $1.50 per share a year ago and four cents ahead of estimates.
Revenue totaled $2.67 billion, up from $2.54 billion and slightly below estimates of $2.7 billion and its shares fell $2.07 to $102.99 as CN also cautioned that a slowdown in grain and fertilizer exports during the summer months could make for a challenging second half of the year.
Rival Canadian Pacific, which posts earnings Wednesday, dropped $2.45 to $130.17
Meanwhile, Chinese media said Premier Li Keqiang said that growth wouldn't go below 7%. He also said that China's economic growth needs to be kept above that minimum, according to Beijing News and reaffirmed 7.5% as this year's growth target.
The report cleared uncertainty about how much China's government would let the economy slow as it tries to shift the basis of growth toward domestic consumption and away from reliance on exports and industrial investment.
Beyond the slide in railway stocks, the financial sector declined with Royal Bank down 61 cents to $65.05
The energy sector gained while Suncor Energy advanced 14 cents to $33.23.
The base metals sector led advancers, with September copper up a cent at $3.20 U.S. a pound after gaining five cents on Monday. Teck Resources climbed 40 cents to $24.37.
The gold sector erased early losses to move up, adding to Monday's gain of over 6%, while Iamgold tacked on 32 cents, or 6.1%, to $5.59. Barrick Gold added 43 cents to $18.68.
On the economic slate, Statistics Canada reported this morning that retail sales burst out of their shell during May, growing 1.9% following two consecutive flat months. It’s the largest growth rate for retail sales since March 2010.
ON BAYSTREET
The TSX Venture Exchange added 1.86 points to 931.24
The 14 Toronto subgroups were evenly split between gainers and losers. Metals and mining stocks topped the former list, growing 3.7%, while global base metals hiked 2.1%, and gold shone 2% brighter.
The seven laggards were weighed mostly by industrials, fading 1.2%, while financial and health-care stocks were each 0.5% lower.
ON WALLSTREET
U.S. stocks were mixed Tuesday as investors weighed the latest corporate results against a weak regional manufacturing report.
The Dow Jones Industrials grew 22.19 points to conclude Tuesday at 15,567.70, surpassing its record closing high
The S&P 500 index moved back 2.93 points to 1,692.60. The NASDAQ dropped 21.11 points to 3,579.27
Stocks opened broadly higher as investors focused on solid corporate reports, but the momentum faded after an index of June manufacturing activity from the Federal Reserve Bank of Richmond plunged 11 points.
After a pullback in June, stocks have resumed their march higher this month, with the Dow and S&P 500 recently hitting successive record highs. So far this year, the major gauges are all up about 19%.
Nearly 160 companies in the S&P 500 are slated to report quarterly results this week. So far, the bulk of the reports have matched or topped analysts' low expectations.
That trend could continue Tuesday, when Apple reports results after the closing bell. The once-mighty iPhone maker is expected to report a drop in quarterly profit. AT&T will also release its results this evening.
Among the companies that reported Tuesday morning, earnings were better than feared, but revenue growth was generally tepid.
UPS reported earnings in line with its preliminary expectations. The packing and shipping company said volume in the U.S. and internationally grew, even as revenue came in slightly below forecasts.
Shares of United Technologies were up after the aerospace supplier raised its earnings outlook for the year.
DuPont reported earnings that beat forecasts but revenue fell short, which the company blamed on slipping chemical sales and economic headwinds in Europe and Asia.
Travelers reported a boost in quarterly profit, citing "lower catastrophe losses."
Texas Instruments shares rose after the semiconductor maker reported quarterly earnings that came in ahead of expectations.
Lockheed Martin said net income rose 10% in the second quarter, despite a 4% drop in revenue.
Wendy's reported better-than-expected earnings and announced plans to sell 425 company-owned restaurants.
Netflix shares sank one day after the streaming-video service added fewer subscribers than expected in the second quarter.
Meanwhile, Cisco announced plans to buy cybersecurity company Sourcefire for $2.7 billion U.S.
Shares of TheStreet briefly rose above $2 after it was reported that private equity firm Spear Point is pushing for a sale of the company, and has positioned itself as a bidder.
Prices for the 10-year U.S. Treasury were down, raising yields to 2.52% from Monday’s 2.49%. Treasury prices and yields move in opposite directions.
Oil prices recovered 32 cents to $107.27 U.S. a barrel.
Gold shed $7.60 to $1,343.60 U.S. an ounce.
