Markets in Toronto touched a two-week high on Tuesday, led by gains in financials and materials, as strong economic data out of Europe buoyed investor hopes for a steady global economic recovery.
The S&P/TSX composite index added 47.92 points to end Tuesday at 12,642.19
The Canadian dollar dipped 0.37 cents to 96.66 cents U.S.
BlackBerry provided further support by extending gains it clocked in the previous session, when the smartphone maker said that it was exploring strategic alternatives. BlackBerry shares climbed 19 cents to $11.32.
Investors also eyed the start of the Canadian bank earnings season later this month, while choppy trading in bullion kept gold-mining stocks volatile.
Financials, the index's most heavily weighted sector, advanced. Toronto Dominion Bank climbed 83 cents, or nearly 1%, to $87.24, and Royal Bank of Canada rose 72 cents, or 1.1%, to $64.05.
Near the end of August, Canadian banks are expected to report a small rise in quarterly profit as lending volumes are restrained by economic uncertainty and a slowing Canadian housing market.
The materials sector, which includes mining stocks, added strength, although Goldcorp Inc fell 31 cents to $29.30, and Potash Corp gained 28 cents to $32.15.
ON BAYSTREET
The TSX Venture Exchange fell 0.91 points to 924.95
Eight of the 14 Toronto subgroups were lower on the day. Gold stocks tumbled 1.7%, while the consumer staples docked 0.8%, and utilities fell 0.7%.
Information technology led the half-dozen gainers, progressing 1.2%, while industrials gained 1.1%, and financials took on 1%.
ON WALLSTREET
As the broader market remained modestly higher Tuesday afternoon, Apple, J.C. Penney and airline stocks were in sharp focus.
The Dow Jones Industrial Average made its way into the green by the closing, taking on 31.33 points to 15,451
The S&P 500 index was ahead 4.69 points to 1,694.16. The NASDAQ was higher by 14.49 points to 3,684.44
Apple shares were among the best performing in the S&P 500 after activist investor Carl Icahn took to Twitter to announce that he has a "large position" in the company and believes it to be "extremely undervalued."
Icahn said he had a "nice conversation" with Apple CEO Tim Cook earlier Tuesday and that they discussed his opinion that a "a larger buyback should be done now."
J.C. Penney was in the spotlight after Bill Ackman resigned from the retailer's board. Ackman has been demanding the ouster of CEO Myron Ullman and chairman Thomas Engibous.
In its statement, Penney's board reiterated its "overwhelming support" for the two leaders. Shares of J.C. Penney initially rose on the news but quickly fell into the red. The stock was down nearly 4%, making it one of the biggest losers in the S&P 500.
Ackman's departure was the also a big topic on StockTwits, but there was little agreement on how the hedge fund manager's exit will impact the future of J.C. Penney.
Meanwhile, airline stocks were big losers after the Justice Department filed a lawsuit to block the $11-billion U.S. merger between American Airlines and U.S. Airways, arguing that it would lead to higher fares for consumers. Shares of American Airline's bankrupt parent company AMR Corp. plunged more than 40% while U.S. Airways shares also tumbled.
Other airline stocks, including Delta, United Continental, JetBlue and Southwest also declined.
Eli Lilly shares rose after the company said its experimental lung cancer drug increased the survival rate of patients in a late-stage trial.
Shares of Yum! Brands Inc sank after the restaurant operator said same-store sales at its KFC locations in China dropped 13% versus last year as the company continues to struggle in the wake of a food safety scandal.
On the economic front, retail sales were up 0.2% in July, rising for a fourth straight month, but the gain was "softer than anticipated," according to one observer.
Prices for the 10-year U.S. Treasury dropped, raising yields to 2.72% from Monday’s 2.60%. Treasury prices and yields move in opposite directions.
Oil prices moved higher 43 cents to $106.54 U.S. a barrel.
Gold prices faded $12.90 to $1,321.30 U.S. an ounce.
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