* TSX up 7.14 points at 11,721.35
* Seven of 10 sectors higher (Adds details, comments)
By Claire Sibonney
TORONTO, July 26 (Reuters) - Toronto’s main stock index was little changed on Monday morning as strong U.S. earnings and economic data boosted investor optimism, but gains were capped by a sharp decline in gold-mining issues.
The market mood was buoyed by U.S. data showing sales of new single-family homes rebounded strongly in June from the prior month’s record low. [ID:nN23137243]
“We didn’t move that much on it but we’re making a one-month high in the S&P500, so that’s a positive,” said Francis Campeau, broker at MF Global Canada.
The home sales data also helped oil prices turn positive, driving the TSX’s powerhouse energy stocks 0.5 percent higher.
Suncor Energy (SU.TO) was up 0.4 percent at C$33.51 and Canadian Oil Sands Trust COS_u.TO rose 1.4 percent to C$29.39.
At 10:24 a.m. (1424 GMT), the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE was up 7.14 points at 11,721.35. Seven of the 10 sectors were higher
Markets also got a lift from FedEx Corp (FDX.N) after the bellwether company raised its earnings outlook, citing strong volume growth. [ID:nN26199061]
“Positive earnings out of FedEx which could be seen as a leading indicator or good proxy of the U.S. economy,” said Campeau.
“We’re looking at 84 to 85 percent of S&P 500 names releasing a positive surprise -- that’s a positive,” he added.
“Canada’s a bit lagging, perhaps on the strong U.S. dollar and the weak gold. Nonetheless market sentiment quietly improved.”
Gold softened, losing some of its safe-haven appeal after a European banks stress test showed no nasty surprises. Gold mining stocks were down 1.4 percent with spot gold around $1,187. [GOL/]
Also among the heaviest decliners, Research In Motion RIM.TO slid 1.4 percent to C$56.87 after the United Arab Emirates said the BlackBerry is open to misuse that poses security risks. [ID:nLDE66O07I]
$1=$1.03 Canadian Reporting by Claire Sibonney; editing by Rob Wilson