The Toronto stock market was higher as traders bought into resource stocks that sold off in the previous session amid tumbling commodity prices.
The S&P/TSX index added 66.74 points after yesterday’s major selloff, to begin Tuesday’s recovery at 12,071.62
The Canadian dollar grew 0.29 cents at 97.83 cents U.S.
CIBC cut the target price on Parkland Fuel Corp to $19.25 from $20 on lower earnings estimates following an in-depth company outlook. Parkland shares gave back 10 cents to $17.32
CIBC cut the target price on Sun Life Financial to $31 from $32 on expectations of headline numbers falling, says progress should be gradual in 2013. Sun Life shares eked up three cents to $26.79
Metals and mining stocks led the charge out of the dungeon Tuesday, with First Quantum Metals surging 6% to $16.52. Gold stocks were also stronger, with Golden Star Resources zooming 8.4% to $1.03, and Goldcorp. gaining 1.4% to $28.79.
On the economic front, figures released this morning by Statistics Canada revealed that manufacturing sales advanced 2.6% to $49.6 billion, the largest increase since July 2011.
The agency also reported that folks living offshore reduced their holdings of Canadian securities by $6.3 billion in February, dropping holdings of equities and money market instruments. Meanwhile, Canadian investors acquired $4.4 billion in foreign instruments, largely bonds.
ON BAYSTREET
The TSX Venture Exchange gained back 9.19 points to 967.45
All but one of the 14 Toronto subgroups were higher at the outset, with metals and mining climbing 3.1%, gold hiking 2.4%, and global base metals streaking ahead 2.3%
Only a 0.2% drop by consumer staples kept things from being unanimous.
ON WALLSTREET
U.S. stocks bounced back from the biggest one-day selloff of the year Tuesday, as investors considered a full slate of corporate results and economic reports.
The Dow Jones Industrials Average recovered 81.67 points to 14,680.90
The S&P 500 index gained 12.44 points to 1,564.80. The tech-heavy NASDAQ Composite strengthened 18.58 points to 3,235.07.
Investors were encouraged after Goldman Sachs, Johnson & Johnson and Coca-Cola released better-than-expected earnings results.
Coca-Cola shares jumped more than 3%, leading the gains on the Dow.
Goldman Sachs shares were slightly lower, while Johnson & Johnson shares gained modest ground.
Target shares pulled back after the discount retailer lowered its earnings and sales forecast, blaming seasonal factors.
Stocks fell Monday, with the selloff intensifying following news of two explosions in Boston. The Dow plunged 266 points, or 1.8%, while the Nasdaq and S&P both lost more than 2%.
Meanwhile, gold rebounded Tuesday, a day after a 9% tumble to a 2-year low. Prices were up more than 2%, hovering just below $1,400 an ounce. Other commodities were mixed.
On the economic front, investors are digesting morning reports on inflation, housing starts, building permits and industrial production.
The International Monetary Fund is also due to release new global economic forecasts Tuesday.
The Consumer Price Index slipped 0.2% in March, more than the 0.1% decline that economists expected. Core CPI, excluding food and energy prices, rose 0.1%.
Housing starts for March topped one million for the first time since June of 2008, reaching an annual rate of 1,040,000. Building permits came in at an annual rate of 902,000 in March, slightly less than the forecast of 945,000.
Housing stocks gained sharply after the report. Shares of homebuilders Lennar and PulteGroup were up about 3%.
Prices on the 10-year U.S. Treasury dipped, raising yields to 1.72% from Monday’s 1.70%. Treasury prices and yields move in opposite directions.
Oil prices lost another 55 cents to $88.15 U.S. a barrel.
Gold prices recovered $24.90 to $1,386 U.S. an ounce.
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