Canadian stocks rose on Tuesday, buoyed by optimism that the European Central Bank will eventually take measures to lower borrowing costs for struggling euro-zone nations such as Spain.
The S&P/TSX Composite index demurred from its triple-digit highs of the day, but still prospered 40.89 points to end Tuesday at 12,116.92.
The Canadian dollar weakened 0.11 cents to 101.05 cents U.S.
The energy sector rose as Cenovus Energy rose 44 cents to $33.31 while Suncor Energy faded four cents to $32.16.
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 56 cents to $29.89 while First Quantum Minerals added 25 cents to $19.62.
The gold sector ran up as Goldcorp Inc. improved by 92 cents to $38.85 while Barrick Gold Corp. was 49 cents higher at $36.50. Shares of Eldorado Gold Corp. rallied 65 cents to $12.41 and those of Tahoe Resources Inc. rose $1.30, or 8%, to $17.53.
In the financials sector, Manulife Financial dipped two cents to $11.12 and Royal Bank was ahead 49 cents at $54.01.
Tech stocks also provided lift as CGI Group moved up 88 cents, or 3.6%, to $25.07, though Research In Motion Ltd. ditched 16 cents to $7.10.
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. Nexen shares gathered 18 cents to $25.56.
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 finished in the green 9.98 points to 1,239.32. The Nasdaq Canada reversed course and fell 1.22 points to 348.50.
Nine of the 14 Toronto subgroups were positive on the day, led by metals and mining issues, up 2%, gold, gaining 1.8%, and materials, leaping 1.3%.
The five laggards were hampered mostly by telecoms, down 0.9%, while industrials and real-estate, off 0.2% each.
ON WALLSTREET
U.S. stocks erased early gains Tuesday, after the S&P 500 briefly rose above its highest closing level in four years.
The Dow Jones industrial average was off 68.06 points to end Tuesday at 13,203.60.
The S&P 500 index dipped 5.65 points to 1,412.48, while the tech-heavy Nasdaq Composite Index gave back 8.95 points to 3,067.26.
Traders said the market was ripe for a pullback after the S&P 500 rose to a high of 1,426, surpassing its May 15, 2008, close of 1,423.
Shares of Apple fell after the stock rose to a new record high Monday, making Apple the most valuable public company. In addition, Apple was downgraded to "hold" by analysts at Oracle Investment Research, who cited concerns about the "hype" surrounding the widely-held stock.
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 was to 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.
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 gained back lost ground, pushing the yield down to Monday’s 1.81%. Treasury prices and yields move in opposite directions.
Oil for September delivery gained 58 cents to $96.55 U.S. a barrel.
Gold futures for December delivery rose $19.90 to settle at $1,642.90 U.S. an ounce.
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