Toronto’s S&P/TSX composite was the only market in the black late Monday morning as U.S. investors reacted to some disappointing news among blue chip U.S. offerings.

At midday, the S&P/TSX had slipped a little, but was still ahead by 37.7 points or 0.45% to 8388.16, while the TSX Venture exchange was down 10.23 or 0.66% to 1551.41. In New York, the Dow Jones industrial average was off more than 64 points or 0.63% to 10075.55, while the Nasdaq was down 9.47 or 0.5% to 1873.68 and the S&P 500 composite had slipped 3.49 points or 0.32% at 1097.9.

The Canadian dollar was up 0.04 of a cent to U76.38¢.

On Bay Street, much of the upward momentum came from financial stocks, up 1.12% as a group, and energy shares, up 1.08%. Bank stocks boosting the TSX included Royal Bank, 70¢ to $60.61, Bank of Nova Scotia, up 32¢ to $35.90 and Manulife Financial, up $1.03 to $52.33.

Sun Life Financial was ahead 21¢ to $36.14; the company announced Robert Astley was stepping down as president of its Canadian operations and being replaced by Kevin Dougherty, a Sun Life executive vice president.

Energy stocks rose as the price of oil remained above the US$41 a barrel level. The price of light, sweet crude for September delivery on the New York Mercantile Exchange dipped 6¢ to US$41.24.

Health stocks were down 2.48%, the drop fuelled in part by the tumble in shares of Angiotech. Its shares resumed trading for the first time since Thursday and were off $1.94 or nine per cent to $21.95 after its American partner, Boston Scientific, recalled about 85,000 Taxus heart stents.

In other Canadian corporate news, shares in brewer Molson Cos. Ltd. were up 95¢ to $33.55 on U.S. reports of a possible merger with U.S. brewing giant Adolph Coors Co. Citing people familiar with the negotiations, the Financial Times reported early Monday that the two family-run firms were discussing a possible combination, which would create a multinational alcohol company with about US$6 billion in sales.

On Wall Street, investors were inclined to do nothing ahead of congressional testimony Tuesday and Wednesday from U.S. Federal Reserve chairman Alan Greenspan.

In earnings news, the company best known for its Scotch tape and Post-it Notes is reporting record second quarter sales and earnings – but 3M shares dropped US$4.36 to US$83.48 after results missed by a penny a share. 3M said Monday net income for the quarter was US$773 million or 97¢ a share, compared with US$619 million US, or 78¢, a year ago. Worldwide sales in the second quarter totalled just over $5 billion US or 9.5 per cent higher than a year ago.

However, investors were taken aback by Kraft Foods’ announcement that higher commodity costs – especially in the dairy sector – took a bite out of earnings in the latest quarter. Those higher prices will lower profits this year from earlier expectations.

Overseas, Asian stock markets closed slightly higher Monday, with Tokyo’s Nikkei Stock Average of 225 issues up 26.86 points, or 0.2% at 11,436, and Hong Kong’s Hang Seng Index up 107.75 points, or 0.9% at 12,166.95.

London’s FT-SE 100 index lost 4.9 point at 4,334.3.

Frankfurt’s DAX 30 eased 0.48% while the Paris CAC 40 lost 0.28%.