TORONTO -- Canada's main stock index started the week stronger and U.S. markets closed at record highs while Citigroup provided an early glimpse of the potential tone for the second quarter.

Citigroup profits rose seven per cent, a slight beat on the back of a lower-than-expected tax rate.

"I think the market's calling it a low-quality beat," said Mike Archibald, Associate Portfolio Manager with AGF Investments Inc.

Citigroup's weaker trading revenues and slightly lower-than forecast margins put a little pressure on financials globally, including in Canada.

"I think the market's sort of digesting that and trying to figure out what that means for the rest of the week," he said in an interview.

Several other large financial groups report in the coming days, including J.P. Morgan and Goldman Sachs, culminating in about 12 per cent of the S&P 500 reporting over the week. That will be followed by 30 per cent next week and another 30 per cent the following week.

The S&P 500 is expected to decline about two per cent in the quarter from a year ago and then be flat in the third quarter.

"So we are getting into a bit of a soft patch here with respect to earnings growth and ...investors should be focusing their attention on stocks and sectors that have decent growth and that's why you're seeing information technology lead so aggressively today," Archibald added in an interview.

The sign of a slowing global economy was also seen in data from China that said its economic growth was limited to 6.2 per cent in June, the lowest level in at least 26 years.

The S&P/TSX composite index closed up 22.70 points to 16,510.82, after reaching an intraday high of 16,524.51.

In New York, the Dow Jones industrial average was up 27.13 points at 27,359.16 after hitting a record 27,364.69 earlier in the session. The S&P 500 index closed up 0.53 of a point to 3,014.30 after setting a record at 3,017.80 while the Nasdaq composite was up 14.04 points at 8,258.19 and 8,264.78 as an intraday high.

The health-care sector climbed 2.04 per cent on a bounce back by several cannabis producers after a very poor week. CannTrust Holdings Inc. gained 19.16 per cent on the day, partially reversing five days of losses that cut its share price almost cut in half following a halt of all sales and shipments of cannabis products amid a Health Canada investigation.

Technology was up nearly two per cent with Shopify Inc. gaining 4.6 per cent on the day.

Materials also rose led by First Quantum Minerals Ltd. with the August gold contract up US$1.30 at US$1,413.50 an ounce and the September copper contract up 1.7 cents at US$2.71 a pound.

Energy fell 0.48 per cent as crude prices decreased since a tropical storm in the Gulf of Mexico was too weak to disrupt oil refineries as some investors feared.

The August crude contract was down 63 cents at US$59.58 per barrel and the August natural gas contract was down 4.5 cents at US$2.41 per mmBTU.

Uranium producer Cameco Corp. saw its shares decrease 7.8 per cent after the company received a smaller sum than it was seeking in an arbitration dispute with a Japanese utility.

The Canadian dollar traded for an average of 76.69 cents US compared with an average of 76.70 cents US on Friday.

Archibald sees the loonie likely appreciating over the next couple of months to the benefit of Canadian travellers south of the border as the U.S. Federal Reserve cuts interest rates and the Bank of Canada puts any rate action on pause over the next three to six months.

"If you're looking for U.S. dollars I think you can do it at a better price in the next quarter or so."