Toronto’s main stock index opened higher on Tuesday, helped by strength in commodities. But traders were wary over a possible Spanish bailout and report that Bundesbank lawyers were checking the legality of the European Central Bank bond-buying plan.
The S&P/TSX composite index gained 65.06 points to open for business Tuesday at 12,378.60
The Canadian dollar nipped up 0.17 cents Tuesday morning to 102.38 cents U.S.
A lawyer for Enbridge Inc. said on Monday that a prominent economist opposed to its Northern Gateway oil pipeline to Canada's West Coast is wrong in her contention that the project will raise costs for refiners, regardless of where their crude comes from. Enbridge shares opened nine cents higher at $38.24.
Coal miner Forbes & Manhattan Coal Corp. said on Monday it plans to acquire two South African coal mines from a unit of Rio Tinto in a bid to boost its output and enlarge its footprint in Africa. Forbes shares gained five cents, or 7.7%, to 70 cents.
Integrated oil whiz Husky Energy Inc. declared on Monday it had reached an impasse with the United Steelworkers union in a four-month strike at the company's 155,000-barrel-per-day Lima, Ohio, refinery. Husky shares rallied 20 cents to $26.80.
On the economic beat, Statistics Canada reported this morning that retail sales rose 0.7% in July, more than offsetting a decline in June. Gains were reported in eight of StatsCan’s 11 sub-sectors.
ON BAYSTREET
The TSX Venture Exchange deducted 1.88 points to 1,331.58
All 14 Toronto subgroups emerged from the gate higher, led by a 1.2% jump in gold prices. Materials and the metals and mining group vied for runner-up spot, each with a 1.1% improvement.
ON WALLSTREET
U.S. stocks opened higher Tuesday following a positive housing report.
The Dow Jones Industrial average was higher 50.96 points to 13,609.90
The S&P 500 index added 5.49 points, to 1,462.38, and the Nasdaq Composite Index rose 9.83 points to 3,170.61
Shares of Tesla sank Tuesday, after the electric car maker said production of its new Model S sedan will be slower than anticipated. The company said it has completed 255 Model S cars as of this past Sunday.
Payroll company Paychex shares slipped after it posted strong first quarter earnings.
Shares of tech company Red Hat fell following an earnings report that fell short of expectations.
Cruise operator Carnival is also scheduled to release its quarterly results this morning. Shares gained ground in early trading.
Google shares rose to fresh all-time highs Tuesday. Google's stock has rallied 16% this year as the company continues to dominate in online searches and makes strides with its Android mobile platform.
Facebook shares continued to edge lower, extending the losses from Monday's plunge. Shares tumbled after a $15 U.S. price call for Facebook by Barron's over the weekend..
Caterpillar dipped a day after the company said "modest global economic growth over the next few years" would affect its future results.
Investors will be keeping tabs on Europe's ongoing debt crisis as European Central Bank President Mario Draghi meets with German Chancellor Angela Merkel.
International Monetary Fund head Christine Lagarde warned Monday that the continent's policymakers need to implement a centralized banking authority and carry through with the European Stability Mechanism, a planned €500-billion fund to provide loans for troubled members of the 17-nation currency union.
Economically speaking, the S&P/Case-Shiller index showed home prices in 20 major U.S. cities rose for a sixth consecutive month, as the long-battered real estate market continues to recover.
Moreover, consumer confidence in the U.S. rose to a seven-month high in September. The Conference Board’s index increased to 70.3 this month from 61.3 in August, figures from the New York-based private research group showed today. The September figure exceeded the most optimistic projection of economists, whose median estimate in a Bloomberg survey called for 63.1.
The price on the benchmark 10-year U.S. Treasury gained a bit of ground, lowering yields to 1.71% from Monday’s 1.72%. Treasury prices and yields move in opposite directions.
Oil for November delivery rose 60 cents to $92.53 U.S. a barrel.
Gold futures for December delivery added $9 to $1,773.60 U.S. an ounce.
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