Stocks in Canada’s biggest centre rose on Monday as oil price gains helped oil and gas companies offset weakness in other sectors, while financials, another index heavyweight, also provided support.
The S&P/TSX composite index was off its highs of the morning, but still better by 50.99 points to greet noon at 15,411.54
The Canadian dollar slid 0.01 cents to 81.89 cents U.S.
Energy stocks tallied, and Suncor Energy and Enbridge were among the most influential movers on the index. Suncor rose 1% to $40.52, while Enbridge advanced 1.2% to $65.60.
Financials were up as Toronto Dominion Bank was another influential mover, up 0.5% to $56.05.
Telecoms weighed markets downward, as Manitoba Telecom Services shed 63 cents, or 2.4%, to $25.44.
Gold miners were among the biggest drags. Goldcorp fell 1.9% to $23.75. Barrick Gold slid 1.6% to $15.37.
Canadian National Railway, which will report first-quarter results after markets close on Monday, was up 1% at $40.52 and one of the biggest gainers.
ON BAYSTREET
The TSX Venture Exchange gained 3.18 points to 706.03
Eight of the 14 Toronto subgroups remained higher, as global base metals moved up 1.2%, metals and mining stocks gained 1%, and energy took on 0.7%.
The half-dozen laggards were weighed mostly by telecoms, sliding 0.7%, consumer staples, off 0.6%, and health-care, down 0.2%.
ON WALLSTREET
U.S. stocks gained more than 1% on Monday amid an unexpected stimulus from China's central bank as investors kept eyeing corporate earnings.
The Dow Jones Industrials hurtled 233.43 points, or 1.3%, higher to 18,059,73
The S&P 500 index picked up 21.68 points to 2,102.86
The NASDAQ index gained 59.13 points to 4,990.94
Of the 59 S&P 500 companies that had reported by last week, 75% had topped profit expectations, above the 70% average for the last four quarters, according to Thompson Reuters. However, only 45% of companies beat revenues estimates, compared with 58% in the last four quarters.
Several companies posted quarterly earnings report Monday morning, including Morgan Stanley, Hasbro, Halliburton and SunTrust.
Morgan Stanley earned an adjusted 85 cents U.S. per share, beating estimates of 78 cents U.S., with revenue also above forecasts.
Morgan Stanley's results were helped in part by better than expected performance in investment management and fixed income.
Hasbro reported quarterly profit of 21 cents U.S. per share, swamping estimates of eight cents, with revenue also beating forecasts by a wide margin despite the negative impact of the strong dollar. Hasbro saw particularly strong performance in its Transformers and pre-school units. The company's shares also hit an all-time high earlier in the session.
Halliburton also beat estimates by 12 cents U.S. with adjusted quarterly profit of 49 cents U.S. per share, with revenue scoring a slight beat as well. But Halliburton does say it expects the oil sector to remain "challenged".
SunTrust earned 78 cents U.S. per share for its latest quarter, six cents above estimates, with revenue essentially in line. SunTrust was helped by lower expenses, and growth in non-interest income.
On Sunday, China's central bank lowered the reserve requirement ratio for all banks by 100 basis points.
The wider-than-expected cut was the People's Bank of China's second reduction in two months, and marks a continuing effort by the world's second-largest economy to combat slowing growth.
Prices for 10-year U.S. Treasuries were slightly lower, raising yields to 1.88% from Friday’s 1.87%. Treasury prices and yields move in opposite directions.
Oil prices remained stronger 65 cents to $55.87 U.S.
Gold prices sank $8.40 to $1,194.70 U.S.
