CANADA STOCKS-TSX goes flat as U.S. earnings season starts

Mon Jul 12, 2010 5:45pm EDT
 
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* TSX slips 0.04 percent to end at 11,565.76

* Six sectors end lower

* Potential earnings surprises sideline investors (Adds details, comments)

By Ka Yan Ng

TORONTO, July 12 (Reuters) - Toronto's main stock index closed marginally lower on Monday, flattening out as wary investors sat on their hands and braced for any surprises that may come as the U.S. earnings season starts.

The index spent the day in a 104-point range as investors looked ahead to second-quarter earnings results from U.S. companies, with Alcoa Inc (AA.N: Quote) reporting after the bell.

A weak run of economic data has raised speculation the global recovery may be losing momentum and the potential for earnings surprises sidelined many investors.

But Kate Warne, Canadian market strategist at Edward Jones in St. Louis, Missouri, said investors should look past a quarter's worth of earnings and position for the future.

"We think long-term investors should be taking advantage of the attractive valuations in companies that are well positioned longer term, rather than paying so much attention to one quarter (of) reports," she said.   Continued...