The Toronto stock market surged upward by more than 250 points today - topping 10,000 for the first time in six months - as an indication that U.S. job losses are slowing lifted confidence.
New York stocks also surged Wednesday, with financial issues leading the way, after reports about the government's "stress tests" suggested that the major banks are better capitalized than some had thought.
Toronto's S&P/TSX composite index charged ahead 265.71 points - or 2.7% - to end the day at 10,146.43.
The benchmark Canadian index hadn't closed above 10,000 since early November, and is up about 33% from its trough in early March.
Investors took in news that vehicle parts giant Magna International Inc. has suspended its dividend after first-quarter sales sagged to $3.6 billion U.S. from $6.6 billion, with a net loss of $200 million. Magna shares rose 29 cents to $43.41.
Elsewhere in the auto sector, Linamar Corp. rose $2.39, or 38%, to $8.65, on top of a 40% surge Tuesday after first-quarter results came in better than expected.
The Toronto financial sector advanced, as Royal Bank gained $1.37 to $45.00 and CIBC advanced $1.98 to $59.45.
The TSX energy sector gained as data from the U.S. Department of Energy showed crude inventories rose less than expected last week by 600,000 barrels.
EnCana Corp. climbed $2.10 to $61.12 and Suncor Inc. improved $2.39 to $35.22.
The TSX base-metals sector rose, as Teck Resources Ltd. was ahead 56 cents to $16.35 after it floated a $4.225-billion U.S. note issue to repay other debt.
The Toronto gold sector ran up as Barrick Gold Corp. was up $1.27 to $38.45.
Biovail Corp. fell $1.75 or 13% to $11.65 after the drug maker cut its quarterly dividend to nine cents a share from 37.5 cents. It also reported a decline in first-quarter profit to $39 million U.S., and said it will pay $510 million U.S. to GlaxoSmithKline to take back U.S. rights to its antidepressant Wellbutrin XL.
Canwest Global Communications Corp. has won another extension on its overdue debt. It now has until May 19. Its shares were off three cents to 27 cents.
Research In Motion Ltd. rose 96 cents to $89.63 after co-CEO Jim Balsillie made a $212.5-million U.S. offer to buy the Phoenix Coyotes, conditional on moving the NHL team to Ontario.
On the economic front, Canadian building permits rebounded 10 times as fast as expected in March, following five straight declines, led by more plans for office buildings and hospitals.
The total value of permits issued by municipalities surged 24% to $4.5 billion, the biggest gain since March 2007, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg anticipated a 2.3% gain, the median of 14 estimates. The value of permits remains below the level recorded in December, and has still fallen 35% since peaking at $7 billion in May 2007.
The Canadian dollar galloped ahead 0.63 cents, to 85.68 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, 10 were in positive territory, energy stocks leading the attack, up 4.3%, followed by gold and metals and mining stocks, each up 3.8%.
Health-care was the sickest of the three groups that lost, falling 2.5%, information technology off 2.2%, and consumer staples, down 0.2%.
The TSX Venture Exchange tacked on 17.50 points to 1,047.86 while the Nasdaq Canada Index added 15.78 points to 730.19
ON WALLSTREET
The Dow Jones Industrials average gained 101.63 to finish at 8,512.28.
The S&P 500 index was up 15.73 points to 919.53, while the Nasdaq Composite Index recovered nearly five points to 1,759.10
A report from ADP Payroll Services showed a 491,000 decline of private sector jobs in April.
That's much better than the 643,000 drop that economists had predicted, according to consensus from Briefing.com. ADP reported a loss of 742,000 jobs in March.
Separately, outplacement firm Challenger, Gray & Christmas Inc. reported that the number of layoffs announced in April fell for the third straight month. While the cuts mark the lowest total since last October, the April figure was still 47% higher than job cuts announced in the same month a year ago.
Bank of America may need to raise an additional $34-billion U.S. in order to meet regulators' standard. Wells Fargo may need around $15 billion U.S., according to published reports Thursday.
Dow component Citigroup may need another $10 billion U.S.
JPMorgan Chase, American Express and Bank of New York Mellon won't need any additional capital, according to the reports.
All the bank stocks mentioned rallied, along with regional banks. Fifth Third Bancorp added 16% and was one of the Nasdaq's big gainers.
General Motors shares slumped ahead of its quarterly report, due out Thursday. The troubled U.S. automaker, facing a potential bankruptcy filing, is expected to post a steep quarterly loss.
Last week rival Chrysler filed for bankruptcy, after failing to win enough concessions from its lenders.
Ford Motor - the only Detroit automaker that has not taken government loans - said its restructuring is on track and that it has enough money to fund its plan. The company also said it will spend $550 million U.S. to convert a plant that produced trucks and SUVs into a complex for making fuel-efficient and battery-powered cars.
Walt Disney issued quarterly results late Tuesday. The Dow component reported weaker earnings that topped estimates on weaker revenue that missed estimates. Shares jumped 12% Wednesday.
Cisco Systems fell ahead of its quarterly results, due out after the close. The tech leader posted earnings of 30 cents per share, down from a year earlier but ahead of estimates.
A rally in oil prices gave a boost to big oil services stocks Exxon Mobil. Chevron, ConocoPhilips and Schlumberger
Among decliners were Wal-Mart Stores and other retailers.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 3.13% from 3.15% Tuesday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose $2.50 to settle at $56.34 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $7.20 to settle at $911.50 U.S. an ounce.
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