The Toronto stock market racked up a solid advance Tuesday on hopes that the European Central Bank will ease the financial crisis by taking steps to reduce the borrowing costs of deeply indebted countries such as Spain and, to a lesser extent, Italy.
The S&P/TSX Composite index vaulted 103.40 points to approach noon at 12,179.43.
The Canadian dollar strengthened 0.28 cents to 101.43 cents U.S.
Gains spread across most TSX sectors, with resource stocks in the lead as prices for crude, copper and gold all advanced.
The energy sector rose as Cenovus Energy rose 73 cents to $33.60 while Suncor Energy gained 32 cents to $32.52.
The September copper contract on the Nymex reversed Monday’s five-cent loss, climbing eight cents to $3.45 U.S. a pound and the base metals sector was much stronger. Teck Resources advanced 82 cents to $30.15 while First Quantum Minerals added 55 cents to $19.92.
The gold sector ran up as Goldcorp Inc. improved by 90 cents to $38.83 while Barrick Gold Corp. was $1.15 higher at $37.16.
The financials sector climbed with Manulife Financial ahead 10 cents to $11.24 and Royal Bank ahead 55 cents at $54.07.
Tech stocks also provided lift as CGI Group moved up 61 cents to $24.80 and Research In Motion Ltd. rose 10 cents to $7.36.
In corporate news, Chinese state-owned oil company CNOOC Ltd., which plans to buy Canada’s Nexen Inc. in a $15.1-billion deal, said Tuesday that first-half profit fell 19% as costs rose and a big oil spill in China’s Bohai Bay cut production.
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 15.03 points to 1,244.37. The Nasdaq Canada pointed upward 2.35 points to 352.07.
All but two of the 14 Toronto subgroups were positive midday, led by metals and mining issued, up 3.1%, gold, gaining 2.3%, and materials, leaping 2.2%.
The two laggards were telecoms, down 0.3%, and consumer discretionary stocks, sliding a mere 0.01%.
ON WALLSTREET
U.S. stocks were mixed Tuesday, as investors remain hopeful that central banks in Europe and the United States are poised to act.
The Dow Jones industrial average dipped 0.84 points to break for lunch Tuesday at 13,270.80.
The S&P 500 index picked up 1.94 points, however, to 1,420.07, while the tech-heavy Nasdaq Composite Index prospered 1.15 points to 3,077.36.
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 reported a loss of 78 cents U.S. a share -- 20 cents better than analysts had expected. The bookseller credited sales of the "50 Shades of Grey" trilogy for boosting its bottom line.
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.
Shares of Facebook continued to slide early Tuesday, following news that one of the social networking site's first big investors sold most of his stake. Peter Thiel, who became a Facebook investor in 2004, sold 16.8 million shares in the IPO, netting $640 million U.S.
Apple set another record: It became the most valuable public company in history Monday after Apple shares hit a new record of $665.15 U.S. The anticipated September launch of the new iPhone, coupled with rumors of a smaller iPad and a more feature-rich Apple TV have lifted the stock in recent weeks. Shares trumped Monday's record high, hitting $674.88 U.S. early Tuesday.
Hedge fund manager George Soros said Monday that he had taken a small stake in British soccer team Manchester United, which debuted on the New York Stock Exchange earlier this month.
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 1.85% from Monday’s 1.81%. Treasury prices and yields move in opposite directions.
Oil for September delivery vaulted $1.31 to $97.28 U.S. a barrel.
Gold futures for December delivery rose $15.30 to $1,638.30 U.S. an ounce.
Stocks gain on hope for central bank action
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