The Toronto stock market is sharply higher as traders catch up to solid advances in commodities and global markets that occurred while the TSX was closed for Victoria Day.
The S&P/TSX Composite Index soared 201.92 points, or 1.8%, to greet noon at 11,482.56
The Canadian dollar slid 0.12 to 98.18 cents U.S.
Markets across Canada were shuttered Monday for Victoria Day
The energy sector gained while Canadian Natural Resources was up 95 cents to $30.90.
The base metals sector ran ahead while copper was unchanged at $3.51 U.S. a pound following a three-cent rise Monday. Ivanhoe Mines gained 61 cents to $9.37.
The gold sector was up and Barrick Gold Corp. advanced $1.07 to $38.94.
The financial sector gained ahead of earnings reports from the big banks which are expected to show some softening from the last quarter.
Bank of Montreal climbed 88 cents to $55.91. BMO hands in earnings Wednesday while TD Bank and Royal Bank report the following day. Scotiabank will deliver its earnings report May 29, with National Bank and CIBC following up May 30.
In corporate news, Canada’s largest operator of convenience stores, Alimentation Couche-Tard Inc., says minority shareholders of Scandinavian convenience store operator Statoil Fuel & Retail have been slow to tender their stock to its friendly takeover offer.
The $2.68-billion U.S. offer has the support of Statoil ASA, the oil company that owns 54 per cent of the Scandinavian convenience store operator. But Couche-Tard requires acceptance by 90% of Statoil Fuel’s shareholders. Couche-Tard shares dropped $1.19 to $40.22.
ON BAYSTREET
The TSX Venture Exchange leaped 28.91 points to 1,256.79, while the Nasdaq Canada inched up 0.06 points to 366.43.
All but one of the 14 Toronto subgroups were positive by noon hour. Metals and mining issues screamed ahead 3.9%, gold spiked 3.4%, and global base metals popped 3.2%.
The lone naysayer was in consumer staples, off 0.1%.
ON WALLSTREET
U.S. stocks moved higher early Tuesday, as investors welcomed a report showing existing home sales surged to a two-year high.
The Dow Jones Industrials added 30.12 points to break for lunch at 12,534.60
The S&P 500 picked up 9.74 points to 1,325.73. The tech-rich Nasdaq Composite Index gained 1.94 to 2,849.15.
Best Buy, which has been hit by a scandal that cost the CEO his job, along with store closings during the most recent quarter, reported solid earnings even as same-store sales fell 5.3%.
The retailer also reaffirmed its earnings guidance of $3.50 to $3.80 U.S. a share, excluding restructuring charges. Analysts are only looking for earnings of $3.58 U.S. a share this year.
AutoZone also reported better than expected earnings of $6.28 U.S. a share, but weaker than expected revenue sent its shares lower.
Williams Sonoma reported earnings per share of 34 cents U.S. excluding special items, which came in better than forecasts and year-earlier results. The retailer raised its earnings guidance for 2012.
Polo Ralph Lauren is expected to report earnings of 84 cents U.S. a share on $1.6 billion U.S. in revenue, later Tuesday morning, while computer maker Dell is expected to post earnings of 46 cents U.S. a share on $14.9 billion U.S. in revenue.
Investors were initially disheartened, though, after Fitch downgraded Japan, the world's number-three economy, and suggested further downgrades could be coming.
Early Tuesday, the Organization for Economic Cooperation and Development cut its forecasts for the euro-zone economy to a decline of 0.1% this year, and warned that sovereign debt problems pose a risk to the global economic recovery.
And a report showing lower inflation in the United Kingdom raised hopes that lower price pressures might allow leaders to move toward more stimulus to respond to economic weakness.
On the economic slate, following the opening bell, the National Association of Realtors said that existing home sales rose 3.4% in April to an annual rate of 4.62 million, up 10% year-over-year and the highest rate since May 2010. Home affordability also came in at record levels.
The home sales report came ahead of Wednesday's readings on new home sales, home prices and mortgage applications. New home sales are also expected to post improvement.
The price on the benchmark 10-year U.S. Treasury slid slightly, boosting the yield to 1.80% from Monday’s 1.79%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil slid 46 cents to $92.11 U.S.
Gold futures for June delivery fell $9.20 to $1,580.60 U.S. an ounce.
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