Markets throughout North America opened with a flourish Tuesday, remaining optimistic that a strategy being drawn up by the European Central Bank would help tackle the region's debt crisis.
The S&P/TSX Composite index flew out of the blocks 106 points to begin Tuesday at 12,182.03.
The Canadian dollar strengthened 0.31 cents Tuesday morning to 101.46 cents U.S.
Heritage Oil is among the stocks to watch this morning. The company says it will sell part of a gas block and borrow money from Genel Energy Plc to raise $450 million, easing concerns about how it will fund oilfield purchases in Nigeria. Heritage shares leaped 45 cents, or 17.3%, in the first hour of trading to $3.05.
On the economic ledger, Statistics Canada told us this morning that wholesale sales faltered 0.1% to $49.9 billion in June, breaking a winning streak of four straight months. Wholesale sales were down 0.5% in volume.
ON BAYSTREET
The TSX Venture Exchange jumped 11.65 points to 1,240.99. The Nasdaq Canada pointed upward 3.62 points to 353.37.
All but two of the 14 Toronto subgroups were positive to begin the session, led by metals and mining issued, up 3%, gold, gaining 2.4%, and materials, leaping 2.3%.
The two laggards were telecoms, down 0.2%, and consumer discretionary stocks, sliding a mere 0.02%.
ON WALLSTREET
U.S. stocks opened modestly higher Tuesday, as investors hope to hear some good news out of Greece this week.
The Dow Jones industrial average jumped 41.05 points to begin Tuesday at 13,312.69.
The S&P 500 index picked up 6.72 points to 1,424.85, while the tech-heavy Nasdaq Composite Index prospered 21.12 points to 3,097.33.
Best Buy reported earnings early Tuesday that fell far short of analyst expectations, sending the retailer's stock down sharply. Best Buy also cut its outlook and suspended its stock buyback plan.
The disappointing report comes after the company announced that it had reached an impasse with founder Richard Schulze in his attempt to buy its outstanding shares, and named Hubert Joly, the former head of Carlson Wagonlit Travel, as its new CEO.
Barnes & Noble is expected to report a loss of 98 cents a share on $1.5 billion U.S. in revenue before the bell.
Dell will report its quarterly results after the closing bell Tuesday. It is expected to post earnings of 45 cents a share on $14.65 billion U.S. in revenue.
Shares of Urban Outfitters soared after the retailer reported second-quarter earnings that beat analyst expectations late Monday, leading to multiple analyst upgrades.
With no U.S. economic data and few corporate reports on the agenda, investors were monitoring developments in Europe.
Greece has been at the centre of Europe's debt crisis. Greek Prime Minister Antonis Samaras, who will be meeting with euro-zone officials throughout the week, is expected to push for a two-year extension of Greece's bailout program. That would give the government more time to implement difficult reforms and help get the nation's economy back on track.
The central bank will release minutes from its July meeting Wednesday afternoon. While the U.S. Federal Reserve didn't announce any further stimulus measures at its latest meeting, investors will look for clues about whether quantitative easing could be coming when Chairman Ben Bernanke speaks at the Jackson Hole, Wyo., symposium at the end of the month.
The price on the benchmark 10-year U.S. Treasury faltered, pushing the yield up to 1.84% from Monday’s 1.81%. Treasury prices and yields move in opposite directions.
Oil for September delivery vaulted $1.24 to $97.21 U.S. a barrel.
Gold futures for December delivery rose $15.30 to $1,638.30 U.S. an ounce.
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