CANADA STOCKS-TSX flat as weak golds offset positive sentiment

* TSX up 7.14 points at 11,721.35

* Seven of 10 sectors higher
(Adds details, comments)

By Claire Sibonney

TORONTO, July 26 (BestGrowthStock) – Toronto’s main stock index was
little changed on Monday morning as strong U.S. earnings and
economic data boosted investor optimism, but gains were capped
by a sharp decline in gold-mining issues.

The market mood was buoyed by U.S. data showing sales of
new single-family homes rebounded strongly in June from the
prior month’s record low. [ID:nN23137243]

“We didn’t move that much on it but we’re making a
one-month high in the S&P500, so that’s a positive,” said
Francis Campeau, broker at MF Global Canada.

Economically sensitive financial issues gained 0.5 percent,
with Bank of Montreal (BMO.TO: ) rising 1.4 percent to C$62.63
and Toronto-Dominion Bank (TD.TO: ) adding 0.6 percent to
C$72.34.

The home sales data also helped oil prices turn positive,
driving the TSX’s powerhouse energy stocks 0.5 percent higher.

Suncor Energy (SU.TO: ) was up 0.4 percent at C$33.51 and
Canadian Oil Sands Trust (COS_u.TO: ) rose 1.4 percent to
C$29.39.

At 10:24 a.m. (1424 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index (.GSPTSE: ) was up 7.14 points at
11,721.35. Seven of the 10 sectors were higher

Markets also got a lift from FedEx Corp (FDX.N: ) after the
bellwether company raised its earnings outlook, citing strong
volume growth. [ID:nN26199061]

“Positive earnings out of FedEx which could be seen as a
leading indicator or good proxy of the U.S. economy,” said
Campeau.

“We’re looking at 84 to 85 percent of S&P 500 names
releasing a positive surprise — that’s a positive,” he added.

“Canada’s a bit lagging, perhaps on the strong U.S. dollar
and the weak gold. Nonetheless market sentiment quietly
improved.”

Gold softened, losing some of its safe-haven appeal after a
European banks stress test showed no nasty surprises. Gold
mining stocks were down 1.4 percent with spot gold around
$1,187. [GOL/]

Barrick Gold Corp (ABX.TO: ) slipped 1.1 percent to C$43.40,
while Goldcorp Inc (G.TO: ) lost 1.2 percent to C$41.75.

Also among the heaviest decliners, Research In Motion
(RIM.TO: ) slid 1.4 percent to C$56.87 after the United Arab
Emirates said the BlackBerry is open to misuse that poses
security risks. [ID:nLDE66O07I]

($1=$1.03 Canadian)
(Reporting by Claire Sibonney; editing by Rob Wilson)

CANADA STOCKS-TSX flat as weak golds offset positive sentiment