Reassuring words from the new chair of the U.S. Federal Reserve sent North American stock markets rallying sharply Tuesday afternoon.
The S&P/TSX composite index grew 86.81 points to end the day at 13,880.99
The Canadian dollar gained 0.39 cents to 90.81 cents U.S.
On the earnings front, Cineplex Inc. had $20.2 million of net income or 32 cents per share, well below estimates of 48 cents. Revenue of $323.2 million also missed estimates and its shares fell 62 cents to $40.88.
Flight simulator maker CAE Inc. had $46.1 million of net income in its third quarter, up from $37.5 million a year earlier. Revenue grew to $513.6 million, up 2.5% from a year earlier and its shares were 49 cents higher at $14.39.
Mining stocks led TSX advancers with the gold group ahead as Iamgold accumulated 19 cents to $4.42, and Kinross Gold gained 27 cents to $5.90.
The base metals sector climbed, as the March copper contract was down one cent to $3.21 U.S. a pound ahead of what could be some further negative news from China after data last week showed the manufacturing sector in the world's second-biggest economy still expanding but at a slower pace.
Teck Resources added 33 cents to $27.73
The energy sector was ahead as Imperial Oil gained 12 cents to $45.94 and Suncor gave back 12 cents to $36.02
The financials sector also provided lift, as TD shares lost eight cents to $48.53, and Royal Bank gained 14 cents to $70.12.
ON BAYSTREET
The TSX Venture Exchange added 12.83 points to 980.24
All 14 Toronto subgroups were positive, with gold surging 2.9%, global base metals tacking on 1.8%, and materials up 1.7%.
ON WALLSTREET
Stocks got a boost Tuesday as new Fed chairwoman Janet Yellen stressed that monetary policy is unlikely to change much under her leadership. Investors clearly liked what they heard.
The Dow Jones Industrial Average moved skyward 192.98 points, or 1.2%, to close the day’s trading at 15,994.77, after briefly crossing the 16,000 threshold for the first time since January 24.
The S&P 500 index gained 19.91 points to 1,819.75. The NASDAQ added 42.88 points to 4,191.05.
Tuesday marked the Dow's fourth straight up day. The blue-chip index has clawed back from a few weeks ago, but is still down 3.5% this year.
Thanks to Tuesday's rally, the S&P 500 is now less than 2% below its all-time high. And the NASDAQ inched into positive territory for 2014.
On the earnings front, Sprint shares rose after the wireless carrier reported better-than-expected revenue and decent subscriber gains. The company posted a loss, but the losses narrowed from a year earlier. Sprint has reportedly been thinking of making a bid for its rival T-Mobile. But there are doubts about whether a deal would pass regulatory muster.
CVS Caremark shares gained after the drugstore chain reported quarterly increases in sales and profit. The company made waves last week when it announced it would soon stop selling cigarettes and other tobacco products.
Shares of cloud computing firm Rackspace Hosting tanked after CEO Lanham Napier said he would retire.
ConAgra Foods shares plunged after the packaged foods company cut its full year earnings outlook. Another food company, milk producer Dean Foods also fell on weak guidance.
Groupon shares took a dive on the news that a product management executive is leaving the daily deal site.
Yellen began testifying before the House Financial Services Committee mid-morning -- her first appearance since taking the helm of the central bank earlier this month.
In prepared remarks, Yellen said the central bank plans to continue easing its stimulus program, a big driver of the 2013 stock market rally.
Since January, the Fed has gradually been reducing the pace of that stimulus. After buying $85 billion U.S. in bonds per month since September 2012, the Fed said in December it would cut its purchases to $75 billion U.S., and then trimmed the size of its quantitative easing program to $65 billion U.S. in January.
Prices for 10-year U.S. Treasuries dipped, raising yields to 2.72% from Monday’s 2.68%. Treasury prices and yields move in opposite directions.
Oil prices faded 20 cents to $99.86 U.S. a barrel.
Gold prices rose $15.90 to $1,290.60 U.S. an ounce.
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