The Toronto stock market found lift from the resource sector Tuesday as prices for oil and other commodities rose amid moves by China to encourage economic growth.
The S&P TSX Composite Index grew 171.83 points, or 1.4%, to approach noon at 12,630.13
The Canadian dollar faded 0.19 cents to 100.48 U.S. cents
But response to an agreement to lend Greece €130 billion to avoid a debt default was muted on global equity markets.
Traders also took in major acquisition activity.
Calgary-based oil and gas contractor Flint Energy Services Ltd. said Monday it is being bought by U.S. engineering and construction giant URS Corp. for $1.25 billion in cash, a 68% premium to Flint’s closing price Friday on the TSX. The deal reflects booming growth in Alberta’s oilsands and North American shale gas and its shares jumped $9.87 to $24.77.
And on Tuesday, Newfoundland-based power company Fortis Inc. said it is buying New York State utility CH Energy Group Inc. in a cash and debt deal worth $1.5 billion U.S. Fortis shares dipped 16 cents to $32.69.
Prices for oil and metals advanced as Suncor Energy was up 64 cents to $34.78 and Cenovus Energy advanced 77 cents to $39.50.
Other energy service companies advanced in the wake of the Flint Energy deal with Trican Well Service ahead 48 cents to $16.67.
The base metals sector climbed as metal prices also climbed with the March copper contract up 11 cents to $3.82 U.S. a pound. China is the world’s biggest consumer of the metal, which is known as an economic barometer because it is used in so many businesses. Teck Resources gained $1.05 to $39.35 and HudBay Minerals gained 21 cents to $12.05.
The gold sector jumped. Barrick Gold Corp. was ahead $1.42 to $48.25 while Goldcorp Inc. improved by $1.16 to $47.97.
On the economic front, Statistics Canada told us this morning that retail sales cooled 0.2% in December, following four consecutive monthly increases.
On the other hand, wholesale sales rose 0.9% in December to $49.6 billion, mainly on higher sales for motor vehicle and parts, as well as for food, beverages and tobacco products.
ON BAYSTREET
The TSX Venture Exchange grew 21.53 points to 1,679.68, while the Nasdaq Canada index gained 6.34 points to 423.15
All 14 Toronto subgroups were higher by midday. Materials jumped 2.9%, while the metals and mining group hiked 2.8%, while gold shone 2.7% brighter.
ON WALLSTREET
In New York, stocks gained traction, helping the Dow cross 13,000 for the first time in nearly four years. Investors grew more optimistic on news that Greece would finally get more bailout funds and stave off default.
The Dow Jones Industrials improved 40.34 points to break for lunch at 12,990.20
The S&P 500 added 6.11 points to 1,367.34, while the tech-focused Nasdaq moved up 5.23 points to 2,957.01
The Dow is up more than 6% in 2012. The S&P 500 and the Nasdaq are up 8.5% and 13.5%, respectively.
The last time the Dow closed above 13,000 was May 19, 2008. Shortly after crossing that key level Tuesday, the index retreated.
Markets were shuttered Monday for President’s Day.
In the United States, several retailers, including Dow component Wal-Mart Stores, released their quarterly results ahead of the bell. While Wal-Mart missed expectations, causing the big box retailer's shares to drop nearly 4%, most of its competitors fared better -- offering more signs of an economic recovery.
Home Depot reported fiscal fourth-quarter earnings and revenue that topped analysts' expectations. The home improvement retailer cited favorable weather as a reason for its strong performance, saying sales at U.S. stores open a year or more climbed 6.1%.
Macy's reported better-than-expected earnings and sales that were in line with forecasts.
Dell reports its quarterly results after the bell. The computer maker is expected to report earnings of 52 cents U.S. per share, down slightly from 53 cents U.S. a year ago, on revenue of $15.97 billion U.S. Competitor Hewlett-Packard is scheduled to report earnings on Wednesday.
Wynn Resorts shares climbed 7%, after reports claimed that the company will buy out Japanese gambling tycoon Kazuo Okada's 20% stake at a big discount.
Shares of Kraft Foods edged up nearly 2%, after the company hit analysts' earnings estimates and predicted earnings' growth of 9% in 2012.
After weeks of negotiations and market speculation, euro-zone finance ministers completed a deal early Tuesday that will provide Greece with the €130 billion in funding it needs to avoid default next month.
Treasury prices for the 10-year note fell, lifting yields to 2.06% from Friday’s 2.01%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained $1.66 to $104.90 U.S. a barrel.
Gold futures for April delivery climbed $21.60 to $1,747.70 U.S. an ounce.
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