Stocks on Bay Street traded positive Tuesday -- as investors snapped up financial and mining shares while energy stocks lost momentum as the price of oil fell below $49 a barrel.
The S&P/TSX composite index was up 186.58 points to 9,472.09.
In the financial sector -- Bank of Montreal was ahead $2.13 cents to $34.66.
Shares in Royal Bank of Canada climbed 83 cents to $38.04 after it said it is issuing $200 million worth of preferred shares paying 6.25 percent.
Toronto-Dominion Bank yesterday announced it was issuing preferred shares to raise $225 million. Its shares advanced $1.23 cents to $46.56.
Fairfax Financial Holdings Limited shares added $20.86 to $383.89 after it raised its annual dividend to US$8 per share from $5.
In other corporate news -- shares in Rogers Communications Inc. were down 44 cents to $36.75 after the company said Apple's iPhone helped boost the number of new wireless subscribers to 199,000 in the fourth quarter of 2008.
On the data front -- Statistics Canada said the November industrial product price index fell 2.6 percent and the raw materials price index dropped 13.4 percent.
Down south -- the National Association of Realtors' index of sales contracts on previously-owned homes fell 4 percent in November from the prior month.
The Commerce Department said shipments from U.S. factories declined a record 5.3 percent in November, with the tally confirming a slump in factory activity seen in other reports.
Also -- the ISM nonmanufacturing index rose to 40.6 percent in December from a record low of 37.3 percent in November. Economists polled were looking for a December result of 37 percent. Readings below 50 percent indicate that more firms are contracting than expanding.
The Canadian dollar, meanwhile, traded 0.14 cents lower at 84.42 cents US.
BAYSTREET
Eleven of the TSX sub-groups traded higher today -- mining stocks gained 10.21 percent followed by a 4.02 percent rise in real-estate issues and a 3.61 percent climb in financial stocks.
Gold stocks were also higher -- up 1.93 percent. COMEX gold for February delivery rose 70 cents to $859.50 US an ounce.
On the downside -- telecom stocks were off 1.54 percent and consumer staples issues were down 1.09 percent.
Meanwhile, the TSX Venture Exchange was up 38.62 points to 913.11 and the NASDAQ Canada was ahead 29.37 points at 486.19.
ON WALLSTREET
U.S. stocks resumed their earlier rise to close higher Tuesday after minutes from the December Federal Open Markets Committee meeting offered a bleak view of the economy and President-elect Barack Obama stumped for his recovery plan on Capitol Hill.
Dow Jones Industrial Average rose 62.21 points, or 0.7 percent, to 9015.10, and the S&P 500 added 7.25 points, or 0.8 percent, to 934.70. The Nasdaq led the charge, climbing 24.35 points, or 1.5 percent, to 1652.38.
President-Elect Barack Obama said Tuesday that the federal deficit will likely close in on $1 trillion in 2009 and stay at unprecedented levels for years, warning the government must embrace budget reform.
The president elect also said his $800 billion stimulus package will ban the pork-barrel projects that are often inserted into legislation, and will be evaluated by an oversight board.
On the corporate front -- Dow Chemical Co. said it would pursue legal action against Kuwait's Petrochemical Industries Inc. over the unraveling of a joint venture. Shares of Dow Chemical gained 6.6 percent.
Toyota Motor said it will halt production at its Japanese plants for 11 days in February and March in an effort to move inventory. On Monday, Toyota reported a 37 percent year-over-year drop in December auto sales.
The 10-year note was rising 2/32 to yield 2.5 percent, and the 30-year note was down 8/32, yielding 3 percent. The American dollar was stronger against the euro and yen, and weaker against the pound.
U.S. light crude oil for February delivery fell 23 cents to $48.58 US a barrel on the New York Mercantile Exchange.
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