Bay Street stocks continue to move notably higher on Wednesday after the U.S. Federal Reserve said it expects to leave rates near zero for a while.
Moments from the final bell, the S&P/TSX composite index was well off its triple-digit highs for the day, but still ahead 17.84 points to 11,043.74.
The Federal Open Market Committee said it was leaving its target for the federal funds rate at a range from zero and a quarter percent. The central bank also repeated its assessment that "exceptionally" low rates will continue for an "extended period." The vote for the rate decision was unanimous.
Mining stocks such as HudBay, soared 9.8% to $15.83 after the company reported third quarter earnings of $0.13 per share, compared to earnings of $0.02 a year ago.
Among consumer discretionary stocks, Corus Entertainment Group rallied 5.3% to $17.82, Cogeco Cable was up 4% to $31.96 and Canadian Tire was even at $62.25
Yellow Pages Income Fund lost 2.8% to $5.20 after the company reported a loss of $0.33, compared to earnings of $0.28 per share a year ago.
Materials stocks such Agrium subtracted 0.5% to $51.07 after the fertilizer maker announced adjusted third-quarter net earnings of $46 million U.S. or $0.29 U.S. earnings per share, compared to $0.16 U.S. per share forecast by analysts. Rival Potash gained 0.2% to $100.55.
Gold stocks like Iamgold Corp. climbed 3.3% to $16.65 after it reported that its third-quarter net earnings were $64.9 million U.S. or $0.18 U.S. per share, compared to $18.8 million U.S. or $0.06 U.S. per share in the same quarter last year.
Yamana Gold announced that its third-quarter net earnings were $60.82 million U.S. or $0.08 U.S. per share, compared to $150.20 million U.S. or $0.21 U.S. per share in the year ago quarter.
However, the stocks turned higher by 0.4% to $12.59.
In other corporate news, Enbridge rallied 1.8% to $42.71 after reporting third-quarter net earnings of $303.8 million or $0.83 per share, compared to $148.4 million or $0.41 per share last year.
Total Energy Services lost 1.5% to $4.57 after the company posted third-quarter net earnings of $2.2 million or $0.08 per share, compared to $6.1 million or $0.21 per share in the previous-year quarter.
WestJet reported third-quarter net earnings of $31.4 million or $0.24 per share, compared to net earnings of $57.9 million or $0.45 per share in the year-ago quarter. The stock was up 1% to $11.20.
Torstar Corp reported third-quarter net income of $4.04 million or $0.05 per share, compared to net loss of $748,000 or $0.01 per share last year. However, the stock lost 2.8% to $7.25.
Logistec Corporation was up 1.1% to $13.00 after the company reported third-quarter net income of $4.1 million or $0.62 per share, compared to $5.4 million or $0.81 per share in the last year quarter.
Galaxy Income Fund added 0.4% to $17.00 after the stock was initiated with a “neutral” rating and a price target of $19 at Credit Suisse.
The Canadian dollar gained 0.21 cents to 93.89 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, 10 were higher on Wednesday, led by a 2.4% jump by metals and mining. Consumer discretionary stocks gained 1.6%, while consumer staples proceeded ahead 1.2%.
Health-care stocks weighed most on the four losing groups, off 1.7%, information technology suffered 1.6% and telecoms were down 0.5%.
The TSX Venture Exchange moved up 4.60 points to 1,331.35, while the Nasdaq Canada index faded 16.18 points to 629.83.
ON WALLSTREET
In New York, stocks ended mixed Wednesday, giving up bigger gains after the Federal Reserve kept interest rates unchanged and said it will keep them low for an extended period.
The Dow Jones Industrials was up 30.23 points to 9,802.14, also fading from strong highs throughout the day. The S&P 500 index gained 1.09 points to 1,046.50, but the Nasdaq composite index stepped back 1.80 points to 2,055.52.
Stocks rose through the early afternoon as investors welcomed a pair of labour market reports that signaled the pace of layoffs is slowing. But markets were choppy after the announcement, with the major indexes alternately cutting most of the the gains, or pushing toward bigger gains.
The central bank opted to hold interest rates steady at historic lows near zero, as expected, following its two-day policy meeting.
In its closely watched statement, the bankers said economic activity is likely to remain weak for some time. As a result, "the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability."
This provided some reassurance to investors who were concerned about how and when the Fed plans to unwind the billions of dollars in stimulus it has pumped into the economy in the wake of the financial crisis.
Two reports Wednesday morning suggested the pace of job losses is slowing, raising hopes that Friday's big monthly report will continue that trend.
Payroll services firm ADP said Wednesday that employers in the private sector cut 203,000 jobs from their payrolls in October after cutting 227,000 in September. A consensus of economists surveyed by Briefing.com expected 198,000 job cuts.
A separate report, from outplacement firm Challenger, Gray & Christmas, showed the number of planned layoffs slowed to 55,679 in October, down 16% from September.
In other economic news, the Institute for Supply Management's reading on the services sector of the economy fell to 50.6 in October from 50.9 in September. Economists thought it would rise to 51.5.
Time Warner, the parent of CNNMoney.com, reported weaker quarterly sales and earnings that topped forecasts.
The company also boosted its full-year 2009 forecast and said that its outlook has improved, although it expects to take a $100-million U.S. charge in the quarter as it restructures its Time Inc. division.
Dow component Kraft Foods reported weaker quarterly earnings that topped estimates on weaker revenue that missed estimates. The company also boosted its 2009 earnings forecast and cut its revenue outlook. Shares fell 3%.
Comcast reported higher quarterly earnings that topped forecasts.
Investors also digested results from Tuesday's elections, including Republican victories in two highly competitive races for governor in both New Jersey and Virginia. CNN exit polls suggest that worries about the economy and growing joblessness led to the victories.
Treasury prices lost more ground, raising the yields for the benchmark 10-year note to 3.53% from Tuesday’s 3.47%. Prices and yields move in opposite directions.
The price of a barrel of oil picked up 80 cents to $80.34 U.S.
Gold prices gained two dollars to $1,087 U.S. an ounce.
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