A sign that the U.S. Federal Reserve may not be putting the brakes on its aggressive monetary stimulus program any time soon sent North American markets higher Tuesday.
The S&P/TSX composite index gained 129.38 points, or 1%, to end Tuesday at 12,742.43
The Canadian dollar dropped quarter of a cent to 97.40 cents U.S.
Stock markets in Canada were closed Monday for Victoria Day.
Gold stocks were the leading advancer on the resource-heavy TSX as Goldcorp Inc. shares jumped 2.9%, or 78 cents, to $27.36 while Barrick Gold Corp. rose 4.5%, or 85 cents, to $19.92.
Meanwhile, the energy sector also lifted the TSX, as EnCana Corp. stocks jumped 3.7%, or 71 cents, to $20.15, and shares in Canadian Natural Resources were up $1.27, or 4.2%, at $31.66.
Metal and mining stocks also climbed, as the price of copper dropped two cents to $3.34 U.S. a pound. Teck Resources was ahead 1.8%, or 51 cents, to $28.49 while shares in Thompson Creek Metals were up 3.1%, or 11 cents, at $3.63.
Outgoing Bank of Canada governor Mark Carney delivered his last scheduled public speech in Montreal, where he urged the country to seize its natural advantages.
Carney told a crowd at the board of trade in Montreal that the Canadian financial and economic system has served it well during the recent recession and in the current recovery, but the country shouldn't rest on its laurels and just wait until the rest of the G7 countries repair their economies.
His speech had little impact on the markets, as investors are now more interested in what incoming governor Stephen Poloz will say when he assumes the role in the beginning of June.
Carney is leaving Canada to head the Bank of England.
No major Canadian economic data was released today
ON BAYSTREET
The TSX Venture Exchange gained 4.73 points to 939.41
All but one of the 14 Toronto subgroups finished in the green Tuesday, with gold pacing gains, up 3.2%, materials surging 1.8%, and financials stronger by 1.5%.
The lone laggard was health-care, down 1.2%.
ON WALLSTREET
Investors pushed stocks higher into record territory Tuesday after comments from a U.S. Federal Reserve official raised hopes the central bank will continue to pump money into the financial system.
The Dow Jones Industrials gained 52.30 points to close at 15,387.60.
The S&P 500 index picked up 2.88 points to 1,669.17. The tech-rich NASDAQ Composite recovered 5.69 points to 3,503.12
New York Federal Reserve President William Dudley said the Fed needs to rethink its current exit strategy, although he stressed that it could involve either increasing or decreasing the pace of its bond buying program.
Dudley's comments come one day before Fed Chairman Ben Bernanke is set to discuss his outlook for the economy in testimony before Congress.
Stocks have rallied more than 16% so far this year, driven by improving economic data and the Fed's easy monetary policies.
JPMorgan shareholders rejected a proposal to split the roles of chairman and CEO, both held by Jamie Dimon. The move is a major victory for Dimon, who has been under fire since JPMorgan lost $6 billion U.S. on derivatives in the so-called London Wale trade.
Apple was also in focus as CEO Tim Cook and other executives appeared on Capitol Hill to testify about the company's tax practices. A report released Monday by Senators John McCain and Carl Levin criticized Apple for its use of obscure subsidiaries and accounting tactics to reduce its tax burden. Cook defended Apple's policies and urged lawmakers to overhaul the nation's tax code.
Shares of Home Depot rose after the home improvement retailer reported quarterly increases in revenue, profit and same-store sales.
The company cited an improving housing market and raised its sales guidance for the fiscal year. Home Depot also benefited from the reconstruction effort in areas hit by Hurricane Sandy.
On the flip side shares of Best Buy slid after the electronics retailer widely missed sales forecasts. Dick's Sporting Goods stock reversed earlier losses after the retailer missed revenue forecasts and issued guidance in line with estimates.
Shares of Carnival stumbled after the cruise ship operator slashed its earnings forecast, and said it was cutting prices in an effort to attract customers back onto its ships.
The sour forecast shows how Carnival continues to suffer from a number of high-profile incidents, including last year's Costa Concordia disaster which led to the loss of 32 lives.
Yahoo shares rose after the company announced a revamped version of photo-sharing service Flickr late Monday, just hours after confirming it was buying blogging site Tumblr.
Prices for the 10-year U.S. Treasury edged up, lowering yields to 1.94% from Monday’s 1.96%. Treasury prices and yields move in opposite directions.
Oil prices dipped 82 cents to $95.89 U.S. a barrel.
Gold prices dropped nine dollars at $1,375.10 U.S. an ounce
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