Financials lead way to modest TSX rise as oil stays in retreat

Tag : Composite Fertilizer

Financials led the way to a modest gain on the Toronto stock marketyesterday as investors felt more confident about bank stocksfollowing good news from Citigroup. Energy stocks lent some supporteven as oil prices continued to retreat.
New York markets closed mixed as investors also took indisappointments from technology giants Google, Microsoft and fromMerrill Lynch, the world's largest brokerage firm.
The S&P/TSX composite index finished up 55.71 points at 13,515.96as the financial sector gained just under 1 per cent following therelease of earnings by Citigroup, the largest bank in the UnitedStates.
Index off 1.4% for week
Toronto financial sector gainers included CIBC, up 66 cents to$57.76 and Bank of Montreal, up 98 cents to $45.96.
The TSX, which fell 193 points or 1.4 per cent this week, is downmore than 10 per cent from the high of 15,073 from just one monthago.
The TSX Venture Exchange rose 15.43 points to 2,298.74.
The Canadian dollar was up 0.11 cent at 99.43 cents (U.S.) afterStatistics Canada reported wholesale trade rose 1.6 per cent in Maydue in large part to higher global demand for agriculturalchemicals.
The agency also said its composite leading index was unchanged inJune, as factory orders and the housing outlook turned down buthousehold spending remained strong.
New York's Dow Jones industrial average was up 49.91 points to11,496.57, after rising almost 500 points in the past two days.
The Nasdaq composite index lost 29.52 points to 2,282.78 and theS&P 500 index added 0.36 of a point to 1,260.68.
Citigroup leads charge
Citigroup gained $1.38 to $19.35 after a second-quarter loss of$2.5 billion beat analyst forecasts. This followedstronger-than-expected results earlier in the week from JPMorganChase and Wells Fargo, easing worries about American banks.
Elsewhere in the financial sector, Merrill Lynch lost $4.89 billionduring the second quarter, hit by almost $10 billion of writedownsand charges. Merrill's shares edged up 18 cents to $30.91.
The TSX energy sector was up 0.8 per cent as the August crudecontract on the New York Mercantile Exchange declined 41 cents to$128.88 a barrel. Crude has lost $16.20 or 11.6 per cent from aweek ago, when oil hit a fresh intraday record high of $147.27.
EnCana Corp. rose 81 cents to $78.81 (Canadian) while Suncor Energygave back 50 cents to $55.
Gold futures for August delivery fell $12.70, or 1.3 per cent, to$958 (U.S.) an ounce on the Comex division of the New YorkMercantile Exchange.
Silver futures for September delivery fell 53.5 cents to $18.20 anounce.
Industrial stocks also lifted the TSX as Canadian National Railwaysclimbed 91 cents (Canadian) to $51.49.
The materials sector fell 0.8 per cent, while miners were takenlower by weak prices for gold and other metals.
Declines in fertilizer companies also took the group lower, withPotash Corp of Saskatchewan down $4.15, or 1.9 per cent, at$211.16, and Agrium off $1.28, or 1.3 per cent, at $93.96.
Bombardier Inc. added eight cents to $7.15 despite news that itsproposal to supply Toronto with new streetcars was rejected.
Toronto Transit Commission chair Adam Giambrone said the Bombardierdesign "would have derailed on Toronto streets and they should haveknown this."
Google disappoints
Investor disappointment was directed at Google, whose earningsjumped 35 per cent to $1.25 billion (U.S.) or $4.63 per share,missing analyst expectations by 11 cents per share. Google stockfell $52.12 or 9.77 per cent to $481.32 amid worries that theailing U.S. economy is hitting the Internet search leader.
Microsoft's quarterly profit jumped 42 per cent, or 13 per centfactoring in a hefty charge a year ago, short of Wall Streetprojections. Its stock softened $1.66 to $25.86.
On the TSX, advances beat declines 851 to 674 with 214 unchanged as325.5 million shares traded worth $7 billion (Canadian).
From the Star's wire services