The Toronto stock market was higher Wednesday amid further positive news from China, while the release of minutes from the latest U.S. Federal Reserve meeting did little to shake the conviction that the Fed is in no rush to end its current economic stimulus.
The S&P/TSX index gained 50.40 points by noon to 12,534.45
The Canadian dollar gained 0.18 cents at 98.56 cents U.S.
The financial sector led advancers, with Scotiabank up 79 cents to $58.16 and Manulife Financial ran ahead 28 cents to $14.54.
The telecom sector was ahead. Three of Canada’s smaller mobile phone carriers have jointly announced they’re withdrawing from the industry’s main lobby group. Wind Mobile, Public Mobile and Mobilicity accuse the Canadian Wireless Telecommunications Association of consistently taking positions that favour Canada’s three older, bigger carriers — Rogers, Bell and Telus.
Commodity prices were mixed following initial strong gains in the wake of Tuesday’s Chinese inflation data.
The energy sector rose. Canadian Natural Resources climbed 34 cents to $32.38.
The base metals sector turned negative, following a strong advance Tuesday as May copper dipped three cents to $3.41 U.S. a pound. Taseko Mines slipped seven cents to $2.64.
The gold sector led declines, as Iamgold slipped 28 cents to $6.56.
Alacer Gold Corp. fell 27 cents to $3.73 even as it announced that a special dividend from the sale of its 49% interest in the Frog’s Lake mine in Australia will be paid at the end of the month. The payment of about 24 cents U.S. per share in cash is part of a plan to distribute about $70 million U.S. from the sale, which closed recently.
In other corporate news, Valeant Pharmaceuticals has settled a patent lawsuit between its Medicis subsidiary and generic giant Actavis Inc. The lawsuit related to Actavis’ version of two Medicis products — Ziana, a acne topical antibiotic, and Zyclara, a prescription drug for premalignant skin problems.
Valeant will receive a share of the proceeds from generic versions of products to be launched by the U.S. firm. Valeant shares advanced 67 cents to $73.96.
ON BAYSTREET
The TSX Venture Exchange deducted 9.53 points to 1,045.24
All but four of the 14 Toronto subgroups remained positive midday, led by financials, ahead 1.4%, telecoms, gaining 1%, and energy, up 0.9%.
The four laggards were weighed mostly by gold, down 3.4%, materials, off 2.2%, and global base metals, sliding 0.2%.
ON WALLSTREET
Stocks surged Wednesday, pushing the Dow and S&P to new record highs.
The Dow Jones Industrials Average added 129.44 points from Tuesday’s all-time record close of 14,802.90
The S&P 500 index gained 17.38 points to 1,585.99. The tech-heavy NASDAQ Composite moved up 54.54 points to 3,292.40
The gains came after the Federal Reserve's minutes showed that most members think asset purchases should continue through at least mid 2013.
In company news, shares of Family Dollar erased earlier losses that were driven by an earnings miss and weak outlook.
Better-than-expected results from computer networking company Adtran helped push up other networking companies, including Cisco and Alcatel-Lucent
Shares of JC Penney slumped amid uncertainty about the troubled retailer's future after former CEO Ron Johnson was ousted Monday.
Facebook's stock rose more than 4% after General Motors announced that it would return to advertising on the social media site, ending its year-long hiatus.
Shares of First Solar pulled back after a big surge Tuesday following better-than-expected guidance from the solar panel maker.
Home builder Taylor Morrison jumped 5% in its public debut, after the initial public offering priced at the high end of its range.
Investors cheered China trade figures for March that showed a 10% year-over-year increase, buoyed primarily by exports to the United States.
Also Wednesday, President Obama will unveil his 2014 budget proposal, which serves as an important marker in continuing debt negotiations in Washington.
Prices on the 10-year U.S. Treasury fell, raising yields to 1.79% from Tuesday’s 1.75%. Treasury prices and yields move in opposite directions.
Oil prices doffed 25 cents to $93.95 U.S. a barrel.
Gold prices fell $14.30 to $1,570.50 U.S. an ounce.
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