Stock markets in Toronto surged at Monday’s open, even amid tension over how soon the U.S. Federal Reserve would begin easing back on its bond-buying program, which many investors credit with keeping this current stock rally going.
The S&P/TSX composite index began the day higher by 73.84 to 13,199.54
The Canadian dollar eked up 0.03 cents to 94.44 cents U.S.
In corporate news, Loblaw Companies recalled three types of Life at Home LED 70 count Outdoor Christmas lights, due to the possibility of loose or exposed wires. Loblaw shares took on 37 cents to $41.67.
Valeant Pharmaceuticals International, Inc. said it would acquire Solta Medical, Inc. for $2.92 per share cash, a 40% premium to Solta's latest closing price. Valeant shares triumphed $1.64 to $114.71.
Constellation Software Inc. announced plans to acquire Total Specific Solutions B.V. for about 240 million euros, through its wholly-owned unit Constellation Software Netherlands B.V. Constellation shares hiked $2.46 to $198.96.
Communications services company Wi-LAN Inc. entered into a patent assignment agreement with Panasonic Corp, in which Panasonic will give to a WiLAN subsidiary certain patents from Panasonic Automotive & Industrial Systems Co., one of Panasonic's internal companies. Wi-LAN shares edged up two cents to $3.35 each.
Oil and gas exploration whiz Crew Energy Inc. announced a capital program of $246 million for 2014, focused on the development of liquids rich natural gas at Septimus, B.C. and light oil at Tower, B.C. Crew shares began the day up six cents to $6.45.
On the economic calendar, Statistics Canada reported that foreign investments in Canadian instruments amounted to $4.4 billion in October, focused on instruments from the corporate sector. Canadian holdings of foreign securities edged lower, led by the sale of U.S. equities.
What’s more, figures released this morning by the Canadian Real Estate Association (CREA) showed national home sales edged 0.1% lower from October to November. CREA also said actual (not seasonally-adjusted) activity was 5.9% above November 2012 levels.
ON BAYSTREET
The TSX Venture Exchange slid 0.49 points to 893.98
All but two of the 14 TSX subgroups were higher in the first hour of the week, with information technology sailing 1.2% higher, health-care moving 1.1% and global base metals strengthening 1%.
Only gold started negative, and only 0.3%, while materials were flat.
ON WALLSTREET
With the U.S. Federal Reserve's final meeting of the year wrapping up on Wednesday, investors are waiting to see if the central bank will begin to cut back, or taper, its massive stimulus program.
Even so, stocks popped in Monday’s first hour: the Dow Jones Industrials gained 158.65 points, or 1%, to 15,914.01
The S&P 500 index added 14.30 points to 1,789.62. The NASDAQ leaped 33.09 points to 4,034.07
In corporate news, AIG rose after the insurer reached an agreement to sell its airline leasing business to AerCap Holdings for $5.4 billion U.S. AerCap surged on the news as well.
Shares of Sprint rose following reports from The Wall Street Journal that it was working on a deal to acquire T-Mobile.
Google agreed to buy Boston Dynamics, a builder of military robots.
The Fed has been pumping trillions into the economy since December 2008. It's been injecting $85 billion U.S. per month since September 2012 through its third round of bond purchases, a program known as quantitative easing.
Prices for 10-year U.S. Treasuries were higher, lowering yields to 2.84% from Friday’s 2.87%. Treasury prices and yields move in opposite directions.
Oil prices improved 66 cents to $97.26 U.S. a barrel.
Gold prices inched up 40 cents to $1,235.00 U.S. an ounce.
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