The Toronto stock market racked up a solid gain for a second day 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 to end the day at 12,534.45
The Canadian dollar gained 0.18 cents at 98.56 cents U.S.
The financial sector led advancers, with Scotiabank up $1.03 to $58.40 and Manulife Financial ran ahead 39 cents to $14.65.
The telecom sector was ahead while Rogers Communications advanced 62 cents to $52.35.
Commodity prices were mixed following initial strong gains in the wake of Tuesday’s Chinese inflation data.
The energy sector rose as Canadian Natural Resources climbed 34 cents to $32.38.
The gold sector led declines, as June bullion in New York fell after Goldman Sachs cut its price target for the precious metal. The investment bank said it now expects an average price for gold in 2013 of $1,545, down from a prior forecast of $1,610. It was the second cut for their gold forecast in less than two months.
Also, Cyprus said it was selling some gold from its reserves to contribute to the country’s bailout. Gold has fallen 7% so far this year.
Iamgold slipped 32 cents to $6.52 while Goldcorp Inc. faded 97 cents to $32.00.
The base metals sector turned negative, following a strong advance Tuesday as May copper dipped two cents to $3.42 U.S. a pound. Taseko Mines slipped five cents to $2.66.
In other corporate news, Toronto-based Porter Airlines has confirmed that it has signed a conditional deal to buy 12 of Bombardier’s new CS100 jets, with options on 18 more. The deal also includes purchase rights for six of Bombardier’s Q400s, the planes which make up Porter’s current fleet.
The total purchase could reach $2.29 billion U.S. if all the options and purchase rights are exercised. Bombardier shares edged up a penny to $4.09 after gaining about 2% Tuesday, when the plane purchase was first reported.
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 76 cents to $74.05.
ON BAYSTREET
The TSX Venture Exchange deducted 9.53 points to 1,045.24
In all, 10 of the 14 Toronto subgroups were higher, led by financials, ahead 1.7%, while energy and consumer discretionary stocks triumphed 1.2% each.
The four laggards were weighed mostly by gold, down 4.2%, materials, sliding 2.9%, and the metals and mining group, off 0.5%.
ON WALLSTREET
Stocks surged Wednesday, pushing the Dow and S&P to new record highs.
The Dow Jones Industrials Average added 128.78 points from Tuesday’s all-time record close of 14,802.20
The S&P 500 index gained 19.11 points to 1,587.72. The tech-heavy NASDAQ Composite moved up 59.40 points to 3,297.25
In company news, shares of Family Dollar dipped, 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 andAlcatel-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.
The gains came after the Federal Reserve's minutes showed that most members think asset purchases should continue through at least mid 2013.
The minutes, which were released five hours early, showed that central bankers remain divided over whether quantitative easing should be continued longer-term. But that didn't appear to worry investors.
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 unveiled 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 1.81% from Tuesday’s 1.75%. Treasury prices and yields move in opposite directions.
Oil prices raised themselves 31 cents to $94.51 U.S. a barrel.
Gold prices fell $25.60 to $1,559.20 U.S. an ounce.
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