Commodities hold back TSX

U.S. stock rose modestly at the start of trading

U.S. stock rose modestly at the start of trading on Monday, while Canadian stocks dipped, following upbeat news on the Greek debt crisis and rising U.S. incomes in May.

The Dow Jones industrial average rose 19 points or 0.2 per cent, to 11,953. The broader S&P 500 rose 4 points or 0.3 per cent, to 1272. In Canada, the S&P/TSX composite index fell 5 points, to 12,904.

Before the start of trading, the U.S. Commerce Department reported that consumer spending in May was flat, versus expectations among economists for a rise of about 0.1 per cent. However, personal incomes rose 0.3 per cent – a little shy of expectations but nonetheless providing enough fuel to drive hopes for rising consumer spending in the months ahead.

At the same time, there was good news on the ongoing drama in Europe after the French president Nicolas Sarkozy backed a plan put forth by French banks that would extend the maturity on Greek bonds, thereby delaying the need for the indebted country to raise cash.

U.S. banks jumped on the news, with Bank of America Corp. up 2.2 per cent, JPMorgan Chase & Co. up 1.2 per cent and Citigroup Inc. up 1.1 per cent. Among Canadian banks, Royal Bank of Canada and Canadian Imperial Bank of Commerce rose 0.5 per cent each.

However, commodity producers were weak after the price of crude oil slipped to $90.61 (U.S.) a barrel, down 55 cents. Suncor Energy Inc. fell 0.5 per cent and Canadian Natural Resources Ltd. fell 0.2 per cent.


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