The Toronto stock market gained traction shortly after the open Tuesday as traders focus on a two-day U.S. Federal Reserve Board meeting that could lead to an attempt to boost economic confidence.
The S&P/TSX Composite Index zoomed higher by 187.23 points, or 1.6%, to close at 11,788.36.
The Canadian dollar was up 0.59 to 98.23 cents U.S.
Some observers expect the Fed will make a move to extend its Operation Twist, under which it sold $400 billion U.S. in short-term securities and replaced them with long-term securities in an effort to put more downward pressure on long-term rates.
Among gold stocks, Barrick Gold was off 24 cents at $40.94. Kinross Gold slid nine cents to $9.32, and Goldcorp dropped 53 cents, or 1.3%, to $40.15.
Elsewhere, HudBay Minerals Inc. climbed 48 cents, or 6.3%, to $8.16, and Major Drilling Group International Inc. was up 79 cents, or 6.8% to $12.45. As a top performer in energy, shares of Cenovus Energy Inc. leaped $1.38, or 4.3%, to $33.63.
Elsewhere, Imperial Oil dipped four cents to $43.71, and Suncor gained 92 cents, or 3.2%, to $30.17
The metals and mining sector jumped with Ivanhoe Mines gaining 35 cents, or 3.4%, to $10.63.
In corporate developments, fuel cell company Ballard Power Systems cut its 2012 sales guidance and said Monday it now expects an adjusted operating loss due to delays in signing a deal in Brazil. Revenue is expected to total about $85 million for the year, down from an earlier estimate of $100 million. Ballard shares were up three cents at $1.15.
On the economic front this morning, Statistics Canada reports wholesale sales rose 1.5% in April to $49.3 billion, mostly due to higher sales in the agricultural supplies industry.
ON BAYSTREET
The TSX Venture Exchange advanced 4.63 points to 1,264.38. The Nasdaq Canada index moved ahead 6.55 points to 379.70
All but one of the 14 Toronto subgroups were higher on the day. Metals and mining stocks jumped 2.4%, financials climbed 2.1%, and energy stocks rumbled higher 1.8%.
Only a 0.8% dip by gold kept things from being unanimous.
ON WALLSTREET
U.S. stocks rallied Tuesday, as investors breathed a delayed sigh of relief over Greece and remained optimistic about possible central bank action as the Fed's two-day meeting got underway.
The Dow Jones Industrials gained 95.51 points to end the day at 12,837.30
The S&P 500 improved 13.04 points, at 1,357.82. The Nasdaq Composite Index acquired 34.43 points to 2,929.76
Shares of retailer JC Penney tumbled after the company announced late Monday that its president had left. Michael Francis was hired away from rival Target in October to lead Penney's marketing efforts, but in May the company announced disappointing sales that sent its share price sharply lower.
Business software maker Oracle made a surprise earnings announcement after the close Monday, announcing an operating profit of 82 cents U.S. a share and a $10-billion U.S. buyback. Shares were up 3% on Tuesday.
Drugstore chain Walgreens announced Tuesday it was buying a 45% equity ownership stake in Alliance Boots, the Switzerland-based drug wholesaler that is a major global drugstore chain. Shares were down 6% on the news.
JPMorgan Chase CEO Jamie Dimon returned to Capitol Hill Tuesday to testify before the House Financial Services Committee about the bank's $2-billion U.S. trading loss. Dimon and regulators debated how institutions like JPMorgan should be monitored.
Dimon assured regulators that the bank "can be regulated" and that it is "not too big to fail."
FedEx reported earnings of $1.99 U.S. a share in its fiscal fourth quarter, excluding special items, topping forecasts. But its guidance for fiscal first-quarter earnings was below forecasts. Shares were up more than 3% in afternoon trading.
Financial services firm Jefferies reported earnings of 31 cents U.S. a share, excluding special items, down from 36 cents U.S. a year earlier but topping forecasts.
Book retailer Barnes & Noble reported a quarterly loss of $1.08 U.S. a share, up from the loss of $1.04 U.S. a share a year earlier.
Microsoft shares edged higher after the software maker unveiled a Windows tablet computer of its own design late Monday.
Shares of Pandora fell Tuesday after Spotify announced it was launching a free mobile radio app for Apple's iPhone, iPad and iPod touch.
Sunday's election in Greece yielded a victory for the pro-bailout party and eased fears that the country will soon exit the euro. The winning New Democracy party could announce a coalition government as soon as Tuesday.
As fears of an imminent Greek exit from the euro recede, banking and debt worries in Spain have moved into greater focus. Spain's 10-year yield remained above 7% Tuesday, heightening worries about that country staving off the need for a bailout
Leaders of the Group of 20 nations conclude a meeting in Mexico on Tuesday. Europe is at the top of the agenda, though analysts aren't expecting any significant policy announcements.
Anticipation is higher about the Federal Reserve's two-day meeting, which ends Wednesday. Some observers believe the Fed may announce another round of bond buying or plans to continue its so-called Operation Twist, which extends the maturities of debt held by Treasury.
Stocks saw a similar rise after the last FOMC meeting in April, with the Dow rising about 350 points in the week after the April 24 meeting. But the boost didn't last; the Dow erased most of its gains by May 7, falling back 270 points.
Economically speaking, home builders filed in May for the greatest number of building permits since September 2008. The government reported Tuesday that permits came in at a seasonally-adjusted annual rate of 780,000, easily topping economists’ forecasts of 725,000.
Housing starts, which are more affected by weather than are permits, fell slightly to an annual rate of 708,000, a bit short of forecasts.
The price on the benchmark 10-year U.S. Treasury lost ground, raising yields to 1.62% from Monday’s 1.58%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil hiked 77 cents to $84.04 U.S.
Gold futures for August delivery settled down $3.90 to $1,623.10 U.S. an ounce.
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