North American markets surged Tuesday, building on momentum of recent record highs as investors bet that the trend has not yet run its course.
The S&P/TSX composite index acquired 47.50 points to wind up Tuesday at 12,577.05
The Canadian dollar faded 0.65 cents to 98.29 cents U.S.
In corporate news, BlackBerry shares fell 3.1%, or 49 cents, to $15.55 after the smartphone maker's chief executive, Thorsten Heins, announced that the company will launch another smartphone with a physical keyboard this summer. Heins also said its BBM messenger service will be available to Android and iPhones by the end of the year.
Canada's largest home improvement retailer, Rona Inc. saw its shares drop 4.8%, or 51 cents, to $10.12 after reporting it has decided not to sell its network of big box stores outside Quebec as it continues to finalize its turnaround plan.
Rona had a $22.7-million adjusted net loss applicable to participating shares, or 19 cents per share in the first quarter. That was up from a loss of $13.5 million or 11 cents per share last year. Overall revenue was down slightly, slipping by $4.6 million to $929.4 million.
Meanwhile, Tim Hortons shares were up 47 cents, to $56.12 as the coffee chain said it was buying back more than a million of its common shares from an unidentified seller by the end of this month. The cost of the Tim Hortons stock buyback wasn't disclosed.
The TSX energy sector experienced a lift. Shares in oil and gas company Husky Energy were up 66 cents, or 2.2% at $30.60.
The gold sector fell, after being positive for most of the morning. Shares in Barrick Gold were up 36 cents, or 1.8%, while Aurizon Mines increased by 17 cents, or 4.5%, to $3.98.
July copper dipped seven cents to $3.29 U.S. a pound, as the metals and mining sector came down by 1.36 per cent. Shares in Teck Resources fell 64 cents, or 2.2% to $28.07, while Thompson Creek Metals was down 19 cents, or 5.2% to $3.48.
No major Canadian economic data was released today.
ON BAYSTREET
The TSX Venture Exchange dropped 7.33 points to 949.37
Eight of the 14 Toronto subgroups were higher, buoyed by a 2.1% jump in health-care stocks, 1.8% for industrials, and 0.7% for energy.
The half-dozen laggards were hampered by metals and mining, down 1.2%, information technology stocks, down 0.6%, and utilities, sliding 0.5%.
ON WALLSTREET
A growing sense of optimism about the U.S. economy pushed stocks to record levels Tuesday, even as the market's fear gauge flashed red.
The Dow Jones Industrials gained spiked 123.57 points to 15,215.20, a new record
The S&P 500 index was up 16.57 points to 1,650.34, also a new high, while the NASDAQ Composite increased 23.82 points to 3,462.61
Stocks have been on a tear this year, with all three indexes up roughly 15%.
There was no specific catalyst for the advance, but traders said bullish comments from a top hedge fund manager helped.
David Tepper, founder of Appaloosa Management, told CNBC that investors should not be concerned about the U.S. Federal Reserve winding down its bond-buying program too soon.
The Fed has been a hot topic this week after the Wall Street Journal reported over the weekend that the central bank was considering an exit strategy. Stocks have gained between 16% and 17% so far this year, driven largely by the Fed's easy money policies.
Bank stocks were among the top performers. Bank of America led the Dow, while Citigroup and Goldman Sachs also gained.
Hedge fund titan Dan Loeb wants to spin off Sony's movie and music division. With a 6% stake, Loeb's Third Point hedge fund is now Sony's largest shareholder.
Shares of Sony have surged 84% this year amid a broad rally in Japanese stocks. Investors have been pouring money into Japan as Prime Minister Abe and the Bank of Japan have launched an aggressive campaign to revive the nation's economy.
The effort has caused a sharp depreciation in the value of the yen, which has helped boost profits for large Japanese exporters, including Toyota and Kirin
SolarCity-- chaired by Tesla head Elon Musk -- reported a wider-than-expected loss and offered weak guidance, sending shares plunging.
SolarCity, which makes solar-power systems for homes and businesses, has seen its stock nearly triple this year. But the industry is still struggling with competition from cheaper solar panels manufactured in China.
Shares of Take-Two Interactive jumped after the maker of Grand Theft Auto easily beat profit forecasts.
As earnings wind down, a few big names are still on deck this week, including Macy's, Wal-Mart, J.C. Penney and Cisco.
Of the 453 S&P 500 companies that have reported earnings results for the first quarter, 301 have beat analysts' estimates, 115 have missed, and 37 have met, according to S&P Capital IQ.
On the economic front, the U.S. Bureau of Labor Statistics reported declines in import and export prices for April, continuing declines from March.
Imports prices fell 0.5% last month and export prices decreased 0.7%.
Prices on the 10-year U.S. Treasury receded, raising yields to 1.95% from Monday’s 1.92%. Treasury prices and yields move in opposite directions
Oil prices docked 94 cents to $94.21 U.S. a barrel.
Gold prices let go of $10.50 at $1,423.80 U.S. an ounce
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