Stocks head higher as Alcoa kicks off earnings season by beating expectations

By Malcolm Morrison

THE CANADIAN PRESS

TORONTO — Resource stocks lifted the Toronto stock market after U.S. aluminum giant Alcoa Inc. encouraged traders with a better than expected earnings report.

The S&P/TSX composite index rose 46.8 points to 11,681.47 while the Canadian dollar advanced 0.1 of a cent to 98.21 cents US.

U.S. markets were also higher after Alcoa reported adjusted earnings of six cents per share, which beat the consensus estimate by a penny. Revenue dropped nine per cent, mainly because of weak prices for aluminum in the slowing global economy.

The Dow Jones industrials ran ahead 86.66 points to 12,822.95.

The Nasdaq composite index was up 16.63 points to 2,948.4 and the S&P 500 index advanced 6.05 points to 1,358.51.

Oil is down 60 cents to US$85.39 as barrel as data showed China’s trade growth plunged in June, hurt by weak U.S. and European demand.

09:37ET 10-07-12