Rail stocks lift TSX, markets regain poise

TORONTO • The Toronto stock market closed higher Friday as traders shook off the geopolitical worries that had roiled markets the previous session and refocused on corporate earnings reports.

The S&P/TSX composite index recovered from early losses to advance 62.09 points to 15,266.57.

The Canadian dollar was resilient, up US0.19¢ at US93.14¢ as the latest data showed rising inflation. The consumer price index rose 0.1% in June versus expectations for a decline.

The Dow Jones industrial average moved ahead 123.37 points to 17,100.18, Nasdaq rose 68.70 points to 4,432.15 and the S&P 500 index gained 20.10 points to 1,978.22.

The industrials sector was the leading TSX gainer, up 1.7% as Canadian Pacific Railway Ltd. climbed $6.76, or 3.34%, to $209.09 on top of Thursday’s 2.25% gain that followed the release of a strong quarterly earnings report. Canadian National Railway Co. advanced $1.31 to $73.08 ahead of earnings coming out on Monday.

August crude on the New York Mercantile Exchange was down US6¢ at US$103.13.

The gold sector gave back about 0.6% as gold prices backed off after running up US$17 Thursday with the August contract down US$7.50 to US$1,309.20 an ounce.

The strong railway gains helped push the TSX up 141 points, or 0.93%, this week. A generally strong run of earnings reports pushed the Dow up 156 points, or 0.92%.