Newspaper article The Canadian Press

TSX Positive, Traders Eye Earnings Reports, Testimony from Fed Chair Yellen

Newspaper article The Canadian Press

TSX Positive, Traders Eye Earnings Reports, Testimony from Fed Chair Yellen

Article excerpt

TSX positive on optimistic earnings outlook

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TORONTO - The Toronto stock market closed modestly higher Monday as traders hoped a strong report from the American financial sector indicated another upbeat earnings season from North American corporations.

The S&P/TSX composite index ran up 45.73 points to 15,171.23, but was well off the highs of the session as mining stocks fell alongside sliding prices for copper and gold.

The Canadian dollar rose 0.17 of a cent to 93.33 cents US two days before the Bank of Canada makes its next interest rate announcement.

The Dow Jones industrials closed up 111.61 points to 17,055.42 as Citigroup posted quarterly earnings per share of US$1.24, beating forecasts of $1.06 a share and its stock ran ahead 3.02 per cent to $48.42. The bank also said Monday it will pay US$7 billion to settle an investigation into risky subprime mortgages, the type that helped fuel the financial crisis.

The Nasdaq advanced 24.93 points to 4,440.42 while the S&P 500 index was ahead 9.53 points to 1,977.1.

Elsewhere in the financial group, Bank of America reports earnings on Wednesday.

On the tech front, chip giant Intel posts results Tuesday while Google reports on Thursday. The week is capped by earnings from General Electric on Friday.

The flood of Canadian corporate earnings reports generally lags the U.S. by a few weeks. The major domestic report of the week comes from Canadian Pacific Railway (TSX:CP) on Thursday.

Walter Spracklin at RBC Capital Markets has reduced his earnings per share forecast for CP Rail for the second quarter to $2.13 from $2.16, reflecting higher costs and lower per tonne grain revenue. However, he also raised his forecast for earnings per share in 2015 to $9.75 from $9.48 "on the expectation for grain volume strength to continue, which lifts our price target to $175 (from $171). …

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