Stocks in Canada’s largest centre hurtled skyward Tuesday, after capping a sixth monthly decline in seven a day earlier, as Bank of Montreal rallied to a one-month high and Valeant Pharmaceuticals International rose for a second day.
The S&P/TSX composite index hoisted 166.23 points, or 1.2%, to close the day at 13,636.06.
The Canadian dollar dropped 0.02 cents to 74.83 cents U.S.
BMO, the nation’s fourth-largest lender, added 1.4% to $78.22, to lead financial services equities higher after its profit exceeded analysts’ estimates. Fourth-quarter profit jumped 13%, led by capital markets and U.S. banking. The bank also raised its dividend 2.4%.
Bank of Nova Scotia was little changed after trimming an earlier drop of more than 1%, as revenue growth was short of analysts’ forecasts while profit beat estimates. The firm also lowered its medium-term goal for return on equity to 14%-plus from 15% to 18%.
Scotiabank dipped 0.2% to $60.80.
Canada’s largest lenders have tumbled 4.3% this year, on pace for their first annual decline since 2011 amid a slowing domestic economy and slumping energy and commodities prices. Royal Bank of Canada and National Bank of Canada are scheduled to report Wednesday, followed by Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Canadian Western Bank on Dec. 3.
Canadian Oil Sands rose 4.3% to $8.92 for a second day of gains. The company has another month to find other suitors willing to counter Suncor Energy Inc.’s hostile takeover offer after Alberta regulators granted an extension to Jan. 4. Suncor’s bid expires Dec. 4.
Suncor had said Nov. 26 it would walk away if Canadian Oil Sands was given more time to seek other bidders. Suncor rose 2.4% to $37.78.
Despite a 9.6% rise from Valeant Pharmaceuticals International to a close of $131.84, the health care sector fell. ProMetic Life Sciences shares fell 11.3% to $3.14, after the company said it will transition its drug to treat Type 2 diabetes to a new placebo-controlled trial.
Statistics Canada reported that the economy grew in the third quarter, with gross domestic product up 0.6% in the third quarter, following two consecutive quarterly declines. The nation’s number crunchers reported that quarterly growth was driven by more international demand for our goods and services as exports grew 2.3%.
On a monthly basis, GDP fell 0.5% in September, primarily as a result of the declines in mining, quarrying, and oil and gas extraction and, to a much lesser extent, manufacturing.
Sticking with items economic, RBC announced a slight gain in its manufacturing Purchasing Managers’ Index for November over the month before.
Canada’s biggest bank told Canadians that, at 48.6 last month, the seasonally adjusted PMI picked up from a survey-record low of 48.0 during October, but still below its 49.5-point monthly average for the year so far.
RBC cites the main factor boosting the headline index in November was a much slower decline in production volumes than seen during the previous month.
ON BAYSTREET
The TSX Venture Exchange dropped 3.04 points to finish at 520.43.
All but two of the 13 TSX subgroups were higher, with utilities soaring 1.6%, while consumer staples and materials each climbed 1.4%
The two laggards were health-care, ailing 2.1%, and telecoms, down 0.1%.
ON WALLSTREET
U.S. stocks closed near session highs Tuesday, the first trading day of December, shaking off intraday pressure from weak manufacturing data.
The Dow Jones industrial average hiked 168.43 points, or nearly 1%, to 17,888.35, with Boeing, UnitedHealth and Goldman Sachs among the index leaders in terms of gains.
The index closed in the green for 2015 for the first time since Nov. 20, when it ended a touch above the flatline year-to-date.
The S&P 500 soared 22.13 points, or 1.1%, to 2,102.54, with health-care rising more than 1% to lead all S&P 500 sectors higher.
The NASDAQ index charged up 46.99 points to 5,155.66
Fiat Chrysler, General Motors, Toyota and Ford reported a rise in monthly U.S. auto sales, supported by Black Friday bargain-hunters.
Amazon.com traded about 2% higher after the firm said it had a record sales weekend for Amazon-made devices such as its Fire tablets, Fire TVs, and its Amazon Echo digital assistant.
U.S. ISM November Manufacturing PMI came in at 48.6, in contraction territory and below the expected 50.5 read.
Construction spending rose 1% for October, topping estimates of 0.6%.
The U.S. Markit PMI for November was 52.8, above the flash read of 52.6 but below the final October print of 54.1.
Monthly auto sales are released throughout jumped ground, lowering yields to 2.15% from Monday’s 2.21%. Treasury prices and yields move in opposite directions.
Oil prices sagged six cents a barrel to $41.59 U.S.
Gold prices were up $4.41 to $1,069.18 U.S. an ounce.
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