Toronto stocks finished higher on Monday as investors expressed optimism at the start of earnings season. The S&P/TSX composite index ended 38.42 points higher at 7,115.98.

Robust earnings from U.S. banking heavyweights Citigroup and Bank of America strengthened feelings that Canadian companies will be able to follow suit.

The TSX information technology sector rose 1% and the financial index added 0.84%.

Shares of Celestica climed rose $1.23 to C$24.40 after the contract electronics manufacturer was mentioned in the financial weekly Barron’s as a potential takeover target.

ATI Technologies gained 60¢ to $15.10 after U.S. semiconductor giant Intel was upgraded by Merrill Lynch.

Among Canadian banks, CIBC rose 35¢ to $55.25, Royal Bank added 34¢ to $58.50, Scotiabank was up $1.45 to $62.45 and TD Bank climbed 22¢ to $38.17.

The junior TSX Venture composite index slipped 3.17 to 1,119.69.

In New York, stocks ended higher after storng profits from banking heavyweights Citigroup and Bank of America fuelled investor optimism at the start of corporate earnings season. Both banks reported earnings that topped Wall Street estimates.

The Dow Jones industrial average ended up 57.56 points at 9,177.15. The broader S&P 500 rose 5.72 points to 1,003.86. The tech-heavy The technology-laced Nasdaq composite index added 20.91 points to 1,754.84.

The Canadian dollar inched higher against the U.S. dollar on Monday, ahead of Tuesday’s Bank of Canada interest rate decision. The loonie finished at US72.74¢, up slightly from US72.62¢ at Friday’s close.