The Toronto stock market was appreciably higher Wednesday as minutes from the Federal Reserve's latest interest rate meeting were taken to indicate that the U.S. central bank will be more accomodative than thought on keeping short-term rates low.
The S&P/TSX composite index ended Wednesday up 63.13 points at 14,435.58
The Canadian dollar resumed its march upward, taking on 0.41 cents at 91.95 cents U.S.
And on Wednesday, Montreal-based discount chain Dollarama announced a hike in its quarterly dividend to 16 cents from 14 cents. The retailer also posted a quarterly net profit of $83 million and diluted earnings per share of $1.17.
That compares with $77.1 million in the same quarter last year on diluted EPS of $1.04. Sales for the quarter were $582.2 million compared with $561.8 million year over year. Its shares ran ahead $6.79, or 7.9%, to $92.57 after earlier hitting an all-time high of $94.25.
Tech stocks advanced, with Constellation Software ahead $11.07, or 4.2%, to $276.28.
The base metals component turned higher, while May copper was down one cent to $3.04 U.S. a pound. Teck Resources docked 29 cents, however, to $25.33
The energy sector gained as Imperial Oil picked up 57 cents to $51.88, while Suncor dipped 22 cents to $39.63
The gold sector shed early losses to move up, with Barrick Gold reacquiring five cents to $20.59, and Kinross Gold gaining six cents to $4.68.
ON BAYSTREET
The TSX Venture Exchange improved 4.58 points to 1,003.37
All but three of the 14 Toronto subgroups were higher on the day, with health-care stocks up 2.1%, information technology surging 2%, and consumer discretionary stocks spiking 1.3%.
The three laggards were consumer staples, down 0.8%, real-estate, off 0.3%, and gold, sliding 0.1%.
ON WALLSTREET
Investors took cheer Wednesday from first-quarter earnings season and the U.S. Federal Reserve sounding a dovish tone.
The Dow Jones Industrial Average bolted higher 181.04 points, or 1.1%, to 16,437.18. The S&P 500 moved ahead 20.22 points to 1,872.18, while the NASDAQ strengthened 70.91 points to 4,183.90
Auto stocks were under pressure today after Toyota announced a massive global recall. General Motors, grappling with the continuing fallout of its botched ignition switch recall, also fell.
In other corporate news, Comcast and Time Warner Cable representatives are appearing before the Senate Judiciary Committee to plead their case for merging the companies. Shares of both companies were higher.
Earnings will most likely be the main catalyst for the markets in the weeks ahead. The first quarter was hampered by severe winter weather, which may have had an impact companies' bottom lines.
The earnings season unofficially commenced yesterday afternoon when Alcoa reported earnings that topped expectations. Shares of the aluminum producer bounced Wednesday. The next big reports will be from J.P. Morgan and Wells Fargo on Friday.
Corporate executives at Constellation Brands should have been toasting after the alcoholic beverages company posted quarterly profits that beat estimates, thanks to a bump in its beer shipments business. Instead, shares fell Wednesday after initially jumping.
Facebook got a boost from an analyst report claiming that Instagram is now is the top social network amongst teens. Facebook bought Instagram in 2012 for $1 billion U.S.
Shares of medical robotics company Intuitive Surgical plunged after the company said it expects first quarter revenue to come in 24% lower than the same quarter last year. The dreary forecast comes just weeks after the stock soared following U.S. Food and Drug Administration approval for a new surgical robot device.
In IPO news, La Quinta hotel chain began trading today under the symbol LQ. Shares were up in afternoon trading after swinging between gains and losses earlier in the day.
Chinese healthcare firm, iKang, another stock making its debut, spiked in its debut and is still trading above 10%. Investors are watching Chinese IPOs as marquee brands Weibo and Alibaba are expected to list soon.
Prices for 10-year U.S. Treasuries gained, lowering yields back to Tuesday’s 2.68%. Treasury prices and yields move in opposite directions.
Oil prices gained 95 cents to $103.51 U.S. a barrel.
Gold prices eked out a gain of 60 cents to $1,309.70 U.S. an ounce.
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