Canadian stocks rose on Tuesday after retail-sales data in the U.S. reflected higher consumer spending and the Federal Reserve said it would maintain interest rates at record lows.
The S&P/TSX Composite Index gained 109.68 points to end the day at 12,537.69
The Canadian dollar took on 0.36 cents to 101.07 cents U.S.
Among information technology issues, shares of CGI Group Inc., a business solution and technology firm, increased 1.4% to $21.76.
Research In Motion Ltd. shares climbed 2.2% to $13.34 after the company unveiled the BlackBerry mini keyboard, a new accessory for its PlayBook tablet.
Neo Material Technologies shares edged up 1.3% to $11.05. Rare Element Resources climbed 7.6% to $6.11.
Metals stocks rose, led by a 3.2% increase in First Quantum Minerals shares, which closed at $21.11. Teck Resources shares gained 2.9% to $36.53.
Shares of Kinross Gold Corp. fell 3.9% to $10.40, after its shareholders filed a class-action lawsuit against the gold mining company. Shareholders alleged that Kinross misrepresented its public disclosure relating to the firm’s mine in Mauritania, Africa, including statements regarding the quantity and quality of gold ore.
Kinross said the allegations made by its shareholders were without merit.
In the financial sector, Royal Bank of Canada shares were up 2.2% to $58.00. Manulife Financial Corp. rose 3.1% to $12.65.
Shares of 5N Plus Inc. fell 20% to $4.03. The producer of purified metal and chemical products reported a fourth-quarter loss. The firm’s rating was cut to sector perform from outperform by the National Bank of Canada, and to sell from neutral by Versant investment bank, according to Dow Jones Newswires.
Air Canada shares rose 1.1% to 93 cents after the Canadian government said Tuesday it proposed legislation to protect the Canadian economy, which would prevent work stoppage at the country’s largest air carrier.
ON BAYSTREET
The TSX Venture Exchange finished in the red, however, by 8.73 points to 1,627.37, while the Nasdaq Canada index moved 5.94 points higher to 415.09
All but two of the 14 Toronto subgroups ended the session higher, led by global base metals, up 2.6%, while the metals and mining group improved 2.4%, and information technology grew 2%.
The two laggards were gold, sliding 1.2%, and materials, off 0.4%.
ON WALLSTREET
In New York, stocks gained Tuesday as investors welcomed a solid report on retail sales and a more upbeat statement from the Federal Reserve.
The Dow Jones Industrials gained 217.97 points, or 1.7%, to close at 13,177.70. The blue-chip index moved back above 13,000 for the first time since March 1.
The S&P 500 tacked on 24.87 points to 1,395.96, while the Nasdaq leaped 56.22 points to 3,039.88. The last time the Nasdaq closed above 3,000 was Dec. 11, 2000.
Investors focused on shares of big banks and technology companies, two sectors of the market that tend to reflect an increased appetite for risk.
Bank of America, Citigroup and JPMorgan were among the top performers. First Solar, Micron Technology and JDS Uniphase were also strong.
Investors bought shares of companies that develop rare earth minerals after the United States, the European Union and Japan filed a trade case over China's export restrictions on the crucial raw materials used in many high-tech devices.
Shares of Molycorp and Rare Earth Ltd. were both significantly higher.
Yahoo filed a lawsuit against Facebook late Monday, alleging that the social media giant infringed on 10 of its patents related to advertising, privacy, customization, messaging and social networking.
Intel shares nudged higher after reports that the chipmaker is planning an Internet-based television service.
Apple shares edged higher following upbeat comments from Wall Street analysts.
Shares of Urban Outfitters sank after the retailer said profits fell 47% last year.
Stocks have rallied this year on steadily improving U.S. economic data and hopes for a lasting solution to Europe's debt crisis. But trading volumes have been low as nervous investors pulled money out of retail investment funds.
Stocks were supported Tuesday by a solid report on retail sales, which raised hopes that higher gas prices will not dent consumer spending.
The market added gains after the Fed's Open Market Committee issued a brighter outlook for the economy, even as it voted to keep interest rates near zero, as expected.
In a statement, the central bank said the job market has improved, consumer spending has increased and inflation is under control despite higher oil and gas prices.
But the Fed warned that the housing market remains "depressed" and that the economy remains vulnerable to "strains" in global financial markets.
Economically speaking, the U.S. government reported Tuesday morning that retail sales rose 1.1% in February, boosted by a surge in gasoline prices. That was slightly above the 1% rise anticipated by economists.
A separate report showed business inventories increased 0.7% in January, compared with a forecast rise of 0.6%.
Treasury prices for the 10-year note slid, raising yields to 2.11% from Monday’s 2.03%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained 34 cents to $106.68 U.S. a barrel.
Gold futures for April delivery edged up two cents to $1,700 U.S. an ounce.
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