Equities in Toronto reached noon on Monday behind Friday’s close, even as buoyant metal prices helped mining stocks rise and investors cheered first-quarter results from Restaurant Brands International Inc.
The S&P/TSX composite index dropped 32.93 points midday at 15,375.40
The Canadian dollar gained half a cent to 82.59 cents U.S.
Restaurant Brands, formed by Burger King's takeover of Canadian coffee and doughnut chain Tim Hortons last year, gained 1.5% to $51.36 as first-quarter revenue more than doubled compared with the fourth quarter.
Miners accounted for four of the five biggest positive impacts on the Toronto Stock Exchange's S&P/TSX composite index, as prices for copper, nickel and iron ore rose on hopes for stimulus in major buyer China.
Gold also rose ahead of a U.S. Federal Reserve meeting later this week.
First Quantum Minerals jumped 6% to $18.59, Barrick Gold advanced 2.4% to $15.60 and Silver Wheaton added 3.3% to $24.08.
But health-care stocks weighed things down somewhat, as Valeant Pharmaceuticals fell $8.55, or 3.3%, to $247.43.
ON BAYSTREET
The TSX Venture Exchange faded 1.4 points to 696.22
Nine of the 14 Toronto subgroups were lower by lunch time, with health-care off 1.7%, information technology sliding 0.9%, and energy faltering 0.7%
The five gainers were led by metals and mining, up 3.4%, gold, surging 2.7%, and global base metals improving 1.8%.
ON WALLSTREET
U.S. stocks pared gains on Monday, with the NASDAQ fading from Friday's record close as investors digested earnings and looked ahead to the Federal Reserve meeting later in the week.
The Dow Jones Industrials remained positive 21.10 points – off its morning peaks -- to pause for noon at 18,101.24
The S&P 500 index moved higher 0.81 points from Friday’s all-time high to 2,118.50
The NASDAQ index slipped 5.93 points from Friday’s record to 5,086.15
Earnings season continues this week, with Apple after the bell. Visa and healthcare names such as Gilead Sciences are among those reporting in the next few days.
Investor focus will be on Apple fiscal second-quarter results due after the bell. TD Ameritrade's Kinahan noted that options were pricing a 4.8% move in the stock.
The Street expects the Cupertino, California-based powerhouse to deliver earnings of $2.16 U.S. per share on revenue of $56.06 billion U.S., according to analysts' estimates from Thomson Reuters. That's a 30% and 23% increase year over year, respectively.
And while Wall Street will be watching iPhone sales, investors will also be listening for an update on Apple's capital return program.
Earnings from the likes of Jones Lang LaSalle and Rent-A-Center are also expected after the market closes.
Before the bell, major earnings on Monday included Canon and Restaurant Brands.
Restaurant Brands International, the parent of Burger King and Tim Hortons, reported that first-quarter revenue more than doubled compared with the fourth quarter of 2014, helped by product launches and promotions.
In economic news, U.S. services sector expansion eased slightly in April from a seven-month high in March on a dip in new business growth, but the pace of hiring in the sector accelerated to its highest since last June, an industry report showed on Monday.
The U.S. Federal Reserve is meeting on Tuesday and Wednesday this week, with the conclusion and post-meeting statement due Wednesday.
The recent string of weak data and first-quarter growth expected at around 1% has convinced many in the markets that the Fed will not raise interest rates until September at the earliest.
Prices for 10-year U.S. Treasuries sagged, raising yields to 1.93% from Friday’s 1.91%. Treasury prices and yields move in opposite directions.
Oil prices gained six cents to $57.21 U.S.
Gold prices hiked $27.30 to $1,202.30 U.S.
