Stocks in Toronto made strong gains at Wednesday’s open, following the Bank of Canada’s announcement and more positive vibes from across the border.
The S&P/TSX composite index started Wednesday off positive by 62.77 points to 12,798.81
The Canadian dollar slipped 0.51 cents at 96.86 cents U.S.
Torstar Corp, publisher of the Toronto Star, Canada's largest daily, cut about 67 jobs and said it would rein in costs in 2013 as revenue from its media business remains uncertain. Torstar shares dipped 67 cents to $7.25.
First Quantum Minerals Ltd, which is engaged in a hostile takeover bid for rival base metal miner Inmet Mining Corp, reported a 146% jump in quarterly profit, helped by higher copper and gold sales. First Quantum shares hiked 32 cents to $18.40
Talisman Energy Inc, Canada's number-six independent oil producer, said it expects the 2013 capital budget to be 25% lower than last year. Talisman shares stumbled eight cents to $12.46
Alamos Gold Inc said it was close to blocking Hecla Mining Co's rival bid for Aurizon Mines Ltd., and had the support of other "large shareholders." Alamos shares fell 21 cents to $13.55, while Aurizon shares surrendered two cents to $4.28
Isotope provider Nordion Inc. reported a smaller quarterly loss due to a gain related to the recovery of income taxes. Nordion shares gained a penny to $6.96
On the economic slate, the Bank of Canada said this morning that it is maintaining its target for the overnight rate at 1%. The Bank Rate is correspondingly 1 ¼%and the deposit rate is three quarters of 1%
Moreover, the Ivey Purchasing Managers’ Index came in during February at 51.10, down from 58.90 in January and down from 66.50 in February 2012. This is a change of -13.2% from last month and -23.2% from one year ago. Any reading over 50 indicates expansion in purchases, below 50, contraction.
ON BAYSTREET
The TSX Venture Exchange dropped 1.82 points to 1,110.41
All 14 Toronto subgroups were positive at the open, led by information technology, up 1.2%, metals and mining, ahead 1%, and materials, up 0.8%.
ON WALLSTREET
One day after hitting an all-time high, blue chips continued to march higher Wednesday, as investors welcomed signs of strength in the U.S. job market.
The Dow Jones Industrials added another 41.70 points to 14,295.50.
The S&P 500 index picked up 2.96 points to 1,542.75. The tech-heavy NASDAQ Composite gained 0.48 points to 3,224.61.
The Dow closed at a record high Tuesday, climbing more than 125 points to 14,253.77. It also set an intraday record of 14,286.37. Both prior records were set in October 2007.
Also Tuesday, the S&P 500 finished at its highest level since October 2007 and is now only about 1.3% away from its record closing high.
In corporate news, office supply company Staples reported fourth-quarter results before the bell, showing a 3% increase in sales but a one-third plunge in profit, triggering a 4% decline in its stock price.
Also, the European Union fined Microsoft €561 million, or about $730 million U.S., for failing to provide users of Windows 7 with a choice of Internet browser.
Shares of Smith & Wesson fell in early trading, despite the gun maker's strong third-quarter earnings.
J.C. Penney's shares extended Tuesday's decline on news that one of its biggest shareholders dumped 40% of its stake. The struggling retailer is in the third week of a court battle with Macy's which claims that Martha Stewart Living Omnimedia violated a previous agreement by entering into a new partnership with J.C. Penney.
On the economic front Wednesday, the ADP National Employment Report showed that private-sector employment increased by 198,000 jobs in February. That was much better than the expected increase of 150,000.
Also, at 2 p.m. ET, the Federal Reserve will release its Beige Book report on economic conditions.
Prices on the 10-year U.S. Treasury fell, raising yields to 1.93% from Tuesday’s 1.89%. Treasury prices and yields move in opposite directions.
Oil prices doffed 64 cents to $90.18 U.S. a barrel.
Gold prices slipped $7.40 to $1,567.50 U.S. an ounce.
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