TSX DECLINES AMID BMO EARNINGS MISS
“Over time, if the U. S. economy continues to accelerate, we will inevitably get to the point where rates will move higher,” Mr. McKinley said, “but the Fed is still managing that process of setting expectations around when that could happen and what it would look like.”
The Dow Jones industrial average gained 92.35 points to 18,209.19, the S&P 500 index edged up 5.82 points to 2,115.48 and Nasdaq rose 7.15 points to 4,968.12.
TSX gains were paced by a 3.4% jump in the base metals sector as March copper was up US6 ¢ at US$2.65 a pound.
The TSX energy sector surrendered early gains to move down 0.63% as oil lost US17¢ to US$49.28 a barrel.
The gold sector was off 1.25% as April bullion faded US$3.40 to US$1,196.90 an ounce.
Canadian National Railway Co. arrived at a tentative agreement Monday with Unifor, which represents about 4,800 mechanical, intermodal and clerical workers, less than an hour after the railway’s 11 p.m. ET deadline to lock out the union’s members. CN declined 13¢ to $86.59.
Fertilizer company Agrium Inc. turned in quarterly net earnings of US$51 million, or 33¢ a share, down from US$99 million (66¢) in the same 2013 period. Sales revenue fell by US$162 million to US$2.7 billion from just less than US$2.9 billion. Its shares ran ahead $4.06 to $142.08.
There was also positive news for the eurozone. Greece’s creditors in the 19-country currency union approved a list of reforms Athens proposed to get a four-month extension to its bailout, which should keep the country afloat over coming months.
TORONTO • The Toronto stock market closed in the red Tuesday as financials retreated amid an earnings miss from Bank of Montreal and U. S. Federal Reserve chairwoman Janet Yellen continued to lay the groundwork for a hike in interest rates.
The S& P/ TSX composite index lost 35.29 points to 15,164.97, with the energy and gold sectors also contributing to the decline.
Bank of Montreal posted lower earnings amid an “unsettled environment” that saw the bank deal with “significant movements in oil prices, long-term interest rates and the Canadian dollar.”
Adjusted net income was $1.04 billion, or $1.53 a share, a dime short of estimates and its shares closed down $1.55 at $75.83. Most other bank stocks were also lower as traders anticipate similar issues when the rest of Canada’s six major lending institutions report this week and next.
“Across the rest of the Canadian banks, we will see a lacklustre or challenging or slower growth environment from personal and commercial banking,” said Colum McKinley, Canadian equities manager at CIBC Asset Management.
The Canadian dollar was up US0.51¢ at US80.03¢.
U.S. indexes were higher as Ms. Yellen told the Senate finance committee that the U.S. central bank would continue to be patient in deciding when to raise interest rates. And she added that before rates go up, the central bank would drop this assurance.
There has been much speculation the bank could move on raising rates as early as June.