CANADA STOCKS-TSX rises on optimism about economic recovery

* TSX up 31.86 points, or 0.27 percent, at 11,746.07

* Seven of 10 sectors higher

* Weak gold miners limit gains
(Updates to close, adds quotes)

By Jennifer Kwan

TORONTO, July 26 (BestGrowthStock) – Toronto’s main stock index
ended higher on Monday as strong U.S. corporate earnings and
home-sales data boosted investor optimism about economic
recovery.

The market mood was buoyed especially by FedEx Corp’s
(FDX.N: ) move to raise its quarterly and full-year earnings
forecasts. For details, see [ID:nN26199061]

Economically sensitive financial issues gained 0.9 percent,
with Royal Bank of Canada (RY.TO: ) up 0.8 percent at C$52.45,
Bank of Montreal (BMO.TO: ) rising 1.7 percent to C$62.85, and
Toronto-Dominion Bank (TD.TO: ) up 1.4 percent at C$72.92.

Strength in the big oil and gas sector, up 0.7 percent,
also helped the index higher. Suncor Energy (SU.TO: ) rose 0.9
percent to C$33.68, and Canadian Natural Resources (CNQ.TO: ) was
up 0.2 percent at C$36.70.

“We got really upbeat guidance from FedEx,” said Barry
Schwartz, vice president and portfolio manager at Baskin
Financial Services, who noted that the rosy outlook followed
strong earnings from United Parcel Service Inc (UPS.N: ) earlier
this month.

Both FedEx and UPS are considered proxies for global
economic health because their package-delivery and services
businesses expand during boom times and shrink in recessions.

“If they’re seeing a pick up in demand, increase in
volumes, then that’s a very good sign. All of the sudden the
market is focused less on the economic growth, which is slowing
and more on the fact that, yes, it’s slowing but it’s going at
a pretty good rate,” Schwartz said.

The Toronto Stock Exchange’s S&P/TSX composite index
(.GSPTSE: ) finished the session up 31.86 points, or 0.27
percent, at 11,746.07, with seven of its 10 sectors higher.

Also keeping the market happy was U.S. data showing sales
of new single-family homes rebounded strongly in June from the
previous month’s record low. [ID:nN26203473]

Limiting the gains were gold miners, which fell as bullion
prices lost their safe haven appeal on rising equities. [GOL/]
Barrick Gold (ABX.TO: ), the world’s No. 1 gold producer, fell
1.7 percent to C$43.12.

Stock Market Basics

($1=$1.03 Canadian)
(Reporting by Jennifer Kwan; editing by Peter Galloway)

CANADA STOCKS-TSX rises on optimism about economic recovery