Source: The Canadian Press

The Toronto stock market pushed higher Monday as investors appeared optimistic ahead of the start of the Canadian earnings season.

The S&P/TSX composite index rose 89.01 points to 13,347.58, while the TSX Venture Exchange lost 16.98 points to 2,248.60.

Investors appear to be anticipating a positive earnings season given better than expected U.S. earnings that have come in as of Monday, said Kate Warne, Canadian market strategist at Edward Jones in St. Louis.

“The TSX does tend to take a cue from the American markets during earnings season, like now, where we’ve got lots of companies reporting and a lot of them either have implications for the health of the U.S. economy or for the global economy,” Warne said.

The Canadian dollar added 0.08 of a cent to 100.54 cents US as the U.S. dollar slipped to a two-month low against the euro and fell against most other major currencies.

The March crude contract on the New York Mercantile Exchange was down $1.24 at US$87.87 a barrel after the Saudi oil minister hinted that his country, OPEC’s biggest oil producer, may raise supplies to put the brakes on higher oil prices.

Meanwhile, hopes are high that Canada’s top energy names will report a strong finish to 2010, with fourth-quarter earnings expected to be about 45% higher than the last three months of 2009, according to John Stephenson, portfolio manager at First Asset Investment Management.

The main reason for the expected bump is higher crude prices, which should be reflected in the results of Canadian Oil Sands Ltd. (TSX:COS), which kicks off oilpatch reporting season on Thursday. Shares in the company were down 19 cents at $26.80 on Monday.

Gold prices moved ahead with the February bullion contract on the Nymex up $3.50 at US$1,344.50 an ounce. The March copper contract was up four cents at $4.34 a pound. Mining stocks rose 1.4% with shares in base metals miner Teck Resources Ltd. (TSX:TCK.B) up $1.13 at C$59.79.

The real estate and information technology sectors led the index higher.

The energy sector was the only major index in the red, down 0.02% with shares in Canadian Natural Resources (TSX:CNQ) off 25 cents at $42.14.

This week earnings will come in from the two major railways — Canadian National (TSX:CN) on Tuesday and Canadian Pacific (TSX:CP) on Wednesday — and from fertilizer giant Potash Corp. of Saskatchewan (TSX:POT) on Thursday.

Potash shares gained $4.50 to $164.27 on the TSX as world food price continue to rise, boosting fertilizer stocks.

CN announced Monday that it had reached a tentative contract agreement with the Canadian Auto Workers union that avoids a potential strike. CN shares added $1 to $68.07.

In other corporate news, shares in Quadra FNX (TSX:QUX) fell 11%, or $1.68, to $13.90 after the company announced that a technical problem at its Carlota mine in Arizona could affect the recovery of copper.

Shares of Baffinland Iron Mines Corp. (TSX:BIM) slipped two cents in trading to $1.49, below the price offered by a joint takeover proposal led by steelmaking giant ArcelorMittal. The offer was set to expire at midnight Monday night.

Toronto-based RioCan Real Estate Investment Trust (TSX:REI.UN) announced it is teaming up with American firm Tanger Factory Outlet Centers Inc. on a $1-billion plan to develop 10 to 15 outlet shopping centres across Canada in the coming years. RioCan units were up 2.3%, or 53 cents, at $22.86.

On Wall Street, the Dow Jones industrial average neared 12,000 for the first time since June 2008, adding 108.68 points to 11,980.52, while the Nasdaq rose 28.01 points to 2,717.55 and the broader S&P 500 index gained 7.49 points to 1,290.84.

Several key American companies issued their earnings, including McDonald’s Corp. which posted a 2% increase in profits. Meanwhile, oil services firm Halliburton Co. more than doubled its fourth-quarter profit.