The Toronto stock market climbed yet again Wednesday, led by metals and mining stocks, as traders in the U.S. harboured hope that discussions over the looming "fiscal cliff" deadline would lead to a resolution well before the New Year.
The S&P/TSX composite index took on 69.29 points to end Wednesday at 12,403.63
The Canadian dollar fell 0.24 cents to 101.21 cents U.S.
The TSX metals and mining sector strengthened with Sherritt International rising 6.1% to $5.73. First Quantum Minerals skyrocketed 7.7% to $21.62, while Thompson Creek Metals gained 6.4% to $4.18.
March copper declined about four cents to $3.62 U.S. a pound, as Teck Resources tacked on 1.8% to $36.13.
Financials also grew, powered ironically by Power Corporation, which moved higher by 2.6% to $25.33, while Industrial Alliance Insurance and Financial hiked 2.1% to $30.62.
In the information technology sector, Celestica soared 4.7% to $8.00, while MacDonald Dettwiler & Associates added 2.8% to $55.79.
On the economic beat, Statistics Canada reported that wholesale sales moved higher 0.9% to $49.2 billion in October, following a decline of 1.5% the previous month.
Moreover, the number of people receiving regular Employment Insurance benefits in October edged up 4,600, or 0.9%, to 535,000, after a slight drop in September.
Meanwhile, the Teranet-National Bank Canadian housing price index fell in November from a month earlier. The composite index covering 11 major urban centres stood at 154.02 last month, down 0.4% from October.
Banking giant CIBC is forecasting "very mediocre" domestic growth next year, blaming weakness in the world economy and an absence of key economic drivers at home. CIBC says it now expects economic growth of only 1.7% in 2013, down from its previous estimate of 2%.
ON BAYSTREET
The TSX Venture Exchange regained 0.52 points to 1,176.52
All but four of the 14 Toronto subgroups were higher on the day, led so by metals and mining, up 3%, while financials gained 1.2% and information technology added 0.9%.
The four laggards were weighed mostly by gold and telecoms, each off 0.3%, and real-estate, down 0.2%.
ON WALLSTREET
U.S. stocks fell Wednesday, as investors wait for politicians to reach an agreement that puts an end to the Washington gridlock on the fiscal cliff.
The Dow Jones Industrial Average shed 98.99 points to close Wednesday at 13,252
The S&P 500 dipped 10.97 points to 1,435.82. The Nasdaq Composite faded 10.17 points to 3,044.36
Early Wednesday, UBS said it will pay $1.5 billion U.S. to settle claims in the U.S., U.K. and Switzerland over rigging Libor benchmark interest rates.
The U.S. Department of Justice announced that two former UBS traders face criminal charges. The settlement was widely expected, and shares of UBS were slightly lower after earlier gains.
Also, the Treasury Department announced it will exit all of its investment in General Motors within the next 12-15 months as part of its efforts to wind down its investments in the Troubled Asset Relief Program (TARP). Shares of GM were up nearly 7%.
Trading firm Knight Capital said it will merge with rival and partial owner Getco, just three weeks after Getco made its offer. Knight Capital stock gained nearly 6%.
In other corporate news, FedEx reported that earnings fell due to a weakened global outlook and the impact of Superstorm Sandy.
FedEx is often viewed as a bellwether for the broader economy due to the global scope of its business. Profits were down, but they topped forecasts. Shares of the shipping giant edged slightly higher.
Cereal maker General Mills posted better-than-expected quarterly earnings Wednesday morning as well.
After the closing bell Tuesday, tech giant Oracle reported quarterly profits and revenue that beat analysts' forecasts. The stock was up 4%.
Shares of U.S. gun makers bounced back a bit Wednesday after struggling following the tragedy at the Sandy Hook elementary school in Connecticut Friday. Both Sturm Ruger and Smith & Wesson gained roughly 7%. Shares of Cabela's, a sporting goods retailer that specializes in hunting gear and guns, were also higher.
Earlier in the day, investors seemed willing to dismiss the latest warning from ratings agency Fitch, which reiterated it may strip the U.S. of its AAA credit rating if Washington is unable to strike a deal soon to avert the fiscal cliff and allow borrowing to rise. But the pace of selling picked up as the day wore on.
Even though stocks lost ground Wednesday, markets have had strong gains in the past few days, as investors welcomed signs of an end to the weeks-long stalemate in Washington over tax hikes and spending cuts set to kick in on Jan. 1.
Economically speaking, the U.S. Census Bureau said housing starts fell 3% in November to an annual rate of 861,000.
Treasury prices regained some ground, lowering yields on the 10-year note to 1.80% from Tuesday’s 1.83%. Treasury prices and yields move in opposite directions.
Oil was up $1.49 to $89.42 U.S. a barrel.
Gold prices were flat at $1,670.70 U.S. an ounce.
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