Stock markets in Toronto edged higher on Tuesday, lifted by a rally in gold shares, which rose with gold's price, as investors speculated on U.S. Federal Reserve actions as it begins a meeting on interest rates.
The S&P/TSX Composite Index gained 14.65 points to end Tuesday at 12,830.56
The Canadian dollar climbed 0.39 cents to 99.78 cents U.S.
The gains were, however, kept in check by a 3.4% decline in Research In Motion Ltd shares, triggered by investor caution ahead of the BlackBerry 10 launch. RIM shares ended the day at $15.71.
Gold prices were higher, notably, Goldcorp Inc., which rose 1.7% to $36.11, and Kinross Gold gained 1.3% to $8.47.
The market was also supported by a 3.1% rise in Canadian Pacific Railway Ltd., which reported a sharp drop in quarterly profit on Tuesday as restructuring charges ate into earnings but said its aggressive efficiency push is poised to pay off. The stock climbed to $116.22.
Among telecoms – which also made hay on Tuesday – Telus Corp. climbed 1.4% to $66.59.
ON BAYSTREET
The TSX Venture Exchange moved up 14.04 points to 1,231.92
All but three of the 14 Toronto subgroups were higher on the day, led by industrials, up 0.9%, gold, up 0.8%, and telecoms, ahead 0.6%.
The three laggards were information technology, sinking 1.4%, while real-estate issues dumped 0.7%, and financials backtracked 0.04%.
ON WALLSTREET
Stocks were mostly higher Tuesday afternoon, as better-than-expected housing numbers helped offset weakening consumer confidence.
The Dow Jones Industrial Average gained 72.49 points to close at 13,954.40
The S&P 500 tacked on 7.66 points to 1,507.84. The tech-heavy NASDAQ Composite slid 0.64 to 3,153.66
Ford was a major drag on the broader market. The car company posted higher fourth-quarter income and sales, boosted by strong results in North America. But worse-than-expected weakness from Europe weighed on Ford's shares, which slid more than 5%.
Drug companies fared better. Shares of Pfizer led the Dow's gains, following the drug maker's better-than-expected quarterly results. Shares of rival Eli Lilly and Co also rallied after the company beat quarterly earnings and sales forecasts.
Shares of Apple gained nearly 2%, after the company announced a new iPad with more storage.
Glass maker Owens Corning also got a big boost after delivering earnings and sales ahead of forecasts.
Shares of homebuilder DR Horton was among the top gainers on the S&P 500, jumping more than 10% after the company more than doubled its quarterly profit.
On the downside, shares of data storage equipment maker EMC plunged after the company's earnings outlook fell short of estimates.
Yahoo shares faltered, day after CEO Marissa Mayer called the company's turnaround "a multi-year march towards growth" as Yahoo posted earnings that beat expectations.
Shares of VMWare dropped nearly 20% after the company lowered its 2013 guidance and announced a strategic restructuring.
Amazon.com results are due after the closing bell.
On Wall Street, Research in Motion dropped more than 7% one day before the company plans to release a new Blackberry 10.
Facebook will release earnings after the bell Wednesday, and its stock dropped more than 3%. Shares of Groupon also fell nearly 3%.
On the economic front, while the Case-Shiller 20-city home price index beat expectations, the Conference Board's monthly Consumer Confidence Index came in far below forecasts.
Case-Shiller reported that home prices in 20 major U.S. cities were up 5.5% in November compared to a year earlier, their biggest jump in more than six years.
Tuesday also marks the start of the Federal Reserve's first monetary policy meeting of the year. At the conclusion of the two-day meeting Wednesday afternoon, investors will look for clues from the central bank's statement for when the bond buying program could end.
Prices on the 10-year U.S. Treasury fell, raising yields to 1.99% from Monday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil prices hiked 98 cents to $97.42 U.S. a barrel.
Gold prices strengthened $9.90 to $1,662.80 U.S. an ounce.
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