* 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.
Economically sensitive financial issues gained 0.5 percent, with Bank of Montreal BMO.TO rising 1.4 percent to C$62.63 and Toronto-Dominion Bank TD.TO adding 0.6 percent to C$72.34.
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/]
Barrick Gold Corp ABX.TO slipped 1.1 percent to C$43.40, while Goldcorp Inc G.TO lost 1.2 percent to C$41.75.
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