North American stocks turned in modest gains at the start of trading on Tuesday, lifted by upbeat sentiment drifting out of Europe following an agreement among leaders on Monday evening to bolster fiscal ties and create a permanent bailout fund. However, some disappointing quarterly earnings weighed on early action.
The Dow Jones industrial average rose 38 points or 0.3 per cent, to 12,692. The broader S&P 500 rose 5 points or 0.4 per cent, to 1318. In Canada, the S&P/TSX composite index rose 49 points or 0.4 per cent, to 12,485.
U.S. banks were among the biggest winners, with Bank of America Corp. up 1.1 per cent and JPMorgan Chase & Co. up 0.8 per cent. As well, Boeing Co. rose 0.8 per cent and DuPont rose 0.8 per cent, suggesting that economically cyclical stocks are leading the way.
However, Exxon Mobil Corp. fell 1 per cent after it reported a mere 1.6 per cent gain in its fourth quarter earnings. United Parcel Service Inc. fell 0.3 per cent after its quarterly earnings fell 29 per cent. Pfizer Inc. rose 0.1 per cent, although its earnings slipped 50 per cent.
Among Canadian stocks, commodity producers were driven by rising prices for crude oil and gold. Suncor Energy Inc. rose 0.7 per cent, Canadian Oil Sands Ltd. rose 0.9 per cent and Barrick Gold Corp. rose 0.7 per cent. Oil rose to $101.08 (U.S.) a barrel, up $2.30. Gold rose to $1,747 an ounce, up nearly $16.