Equities in Toronto overcame early morning losses, as gold producers jumped with the price of the metal after U.S. Federal Reserve Chair Janet Yellen sounded caution on raising interest rates due to heightened risks in the global economy.
The S&P/TSX Composite Index changed gears and headed in a positive direction 36.04 points to conclude the session Tuesday at 13,426.23. Experts say the S&P/TSX is up nearly 3% this year and is one of the best-performing developed markets in the world.
The Canadian dollar spiked 0.7 cents to 76.53 cents U.S.
Amaya Inc. jumped $1.89, or 12.8%, the most in two months, to $16.70, after Chairman and Chief Executive Officer David Baazov said he was taking an indefinite paid leave of absence amid an insider trading investigation at the world’s largest online poker company. Quebec regulators last week laid 23 charges, including five against Baazov himself.
Among gold issues, today’s champion among gaining sub-groups, Barrick Gold hiked 39 cents, or 2.2%, to $18.36, while Goldcorp gained 69 cents, or 3.3%, to $21.48.
Health-care took a pounding, however, as Concordia Healthcare lost $3.00, or 9.1%, to $30.10, while old standby Valeant Pharmaceuticals slid 26 cents to $37.81.
On the economic calendar, Statistics Canada reported its industrial product price index moved lower 1.1% in February – due to lower energy and petroleum products -- while its raw materials price index tailed off 2.6% during the same month, mainly as a result of lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange recovered 1.42 points to 577.22
Eight of the 13 TSX subgroups had turned positive by day’s end, with gold jumping 4%, materials up 2.5%, and information technology ahead 1.8%.
The five laggards were weighed mostly by health-care, sagging 2.2%, energy, down 0.7%, and financials, failing 0.2%.
ON WALLSTREET
Equities south of the border went north of the breakeven line Tuesday, led by gains in tech stocks, as investors digested afternoon remarks from Fed Chair Janet Yellen.
The Dow Jones Industrials hurtled forward 97.72 points to finish Tuesday at 17,633.11. Apple rallied 2.4% to $107.68 U.S., to contribute the most to gains, while 3M was the greatest contributor to declines.
The S&P 500 moved up 17.25 points to 2,054.30. Financials proved the only decliner, with bank stocks underperforming.
The NASDAQ index moved positive 79.84 points to 4,846.63. Apple, Microsoft, Amazon.com and Facebook traded more than 2% higher to support gains in the tech-heavy index.
Incidentally, with Tuesday's afternoon gains, Apple came within 20% of its 52-week intraday high, out of bear market territory on an intraday basis.
Late Monday, the U.S. Justice Department said it no longer needs Apple's help after accessing data on the iPhone used by a shooter in last year's San Bernardino, California, attacks.
Lennar beat estimates by 11 cents with earnings of 63 cents U.S. a share, on revenue that also topped expectations. The home builder reported a nearly 10% increase in new orders and a 12% rise in deliveries.
The stock gained $1.45, or 3.1% higher, to greet the closing bell at $48.15 U.S.
According to prepared remarks, Yellen said that economic readings are mixed and it is appropriate to proceed cautiously.
In a question-and-answer session following her speech, Yellen said there are risks, but "not all to the downside."
Economically speaking, U.S. consumer confidence showed a rise in March to 96.2 from 94.0 in February.
In other economic news, the S&P/Case-Shiller 20-City Composite Index for January showed a 5.7% rise from the previous year. The March jobs report is due Friday.
Prices for the 10-year Treasury gained ground, lowering yields to 1.80% from Monday’s 1.89%. Treasury prices and yields move in opposite directions.
Oil prices fell 94 cents a barrel to $38.10 U.S.
Gold prices bolted higher $19.24 to $1,240.95 U.S. an ounce.
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